Since September 1, 2019, individuals and Hindu Undivided Families (HUFs) must deduct Tax Deducted at Source (TDS) under Section 194M when paying over ₹50 lakh to contractors, professionals, or for commissions and brokerage within a financial year. The deduction occurs at the time of payment or when the amount is credited, whichever happens first. Under Section 194M, a 2% … [Read more...] about TDS on Payments to Contractors and Professionals: Section 194M
TDS
How TDS on Dividend Income Works in India: A Simple Guide
A dividend is cash or stock that a company pays to its owners from its earnings. This income is taxable in India. Under Section 194 of the Income Tax Act, 1961, tax is deducted at the source (TDS) when dividends are paid to shareholders. Under the Income Tax Act, 1961, any person (resident or non-resident) receiving dividends from a company is subject to Tax Deducted … [Read more...] about How TDS on Dividend Income Works in India: A Simple Guide
Section 194T: TDS on Payments to Partners of Partnership Firms
Starting April 1, 2025, there will be new tax rules in India that will change how partnership firms pay their partners. Section 194T requires these partnership firms to deduct a part of certain payments as Tax Deducted at Source (TDS). This means partners will see some tax taken out of their payments right away.Before this change, partnership firms, including Limited … [Read more...] about Section 194T: TDS on Payments to Partners of Partnership Firms
How to avoid deduction of tax at source (TDS) on dividend income
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
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