Dividend incomes are taxable in the hands of the investor under the head “income from other sources”. If trading in stocks and mutual funds is your business, then you can take dividend income as your business income.It does not matter whether the dividend is received from a company or a mutual fund. To know under which head and how dividend income is taxable, you can read … [Read more...] about How to avoid deduction of tax at source (TDS) on dividend income
TDS
Which section code to use in TDS Return Filing
It’s mandatory to enter section codes in the field “section under which payment made” while preparing TDS return 24Q and 26Q. Therefore, for your ready reference here are all the section codes given to use while preparing your TDS return. SectionNature of PaymentSection Code192APayment of accumulated balance due to an employee192A193Interest on … [Read more...] about Which section code to use in TDS Return Filing
Tax deduction at source (TDS) in respect of income from mutual fund – Section 194K
Section 194K has been inserted with effect from 1st April 2020 by our FM Nirmala Sitharaman. This section of the Income tax act, 1961, includes a tax deduction on the amount paid on the units of mutual fund to a resident individual. Government has abolished dividend distribution tax (DDT), due to which, now dividend income will be taxable in the hands of the receivers or … [Read more...] about Tax deduction at source (TDS) in respect of income from mutual fund – Section 194K
Income Tax section codes used in TDS return
While filing income tax TDS Return, you need to mention the correct section code for the relevant income tax section under which you have deducted tax at source. Here is a list of those section codes to be mentioned in TDS return. Table showing section codes to be used in TDS return SectionDeducted forSection code to be used in the TDS return192APayment of accumulated … [Read more...] about Income Tax section codes used in TDS return
TDS Rates-Applicable to a person other than a company
Applicable for the Assessment year 2020-21 Particulars TDS Rates (in %) where the person is resident in India- Section 192: Payment of salary Normal Slab Rate Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee. 10 Section 193: Interest on securities a) any debentures or … [Read more...] about TDS Rates-Applicable to a person other than a company