Tds on professional fees limit for fy 2022-23

Synopsis TDS or tax deducted at source was introduced to collect tax at the source from where an individual's income is generated. TDS works on the concept that every person making specified types of payments to any person will deduct tax at rates prescribed in the Income-tax Act while making the payment or when the payment is accrued and will deposit the same into the government's account. Here, the person making the payment is responsible for deducting the tax and depositing the same with government. This person is known as 'deductor'. On the other hand, the person who receives the payment after TDS is called the 'deductee'. Form26AS is a statement which shows the amount of tax that has been deducted and deposited in a person's name/PAN in a particular financial year. An individual can, therefore, view/check the TDS from incomes paid to him by viewing his/her Form 26AS/Annual Information Statement (AIS). Each deductor is also duty bound to issue a TDS certificate certifying how much amount is deducted from the deductee's income and deposited with the government against his/her PAN. The AIS and Taxpayer Information Summary (TIS) was introduced by the government in November 2021. Both the documents provide record of financial transactions that the income tax department has of an individual. It shows total income received, source of income and total tax deducted on the income received. How TDS works The entity making a payment (which is subject to TDS) deducts a certain per...

Income Tax TDS Rate Chart for for Financial Year (FY) 2022-23 / Assessment Year (AY) 2023-24 The term ‘TDS’ refers to ‘ Rates for tax deduction at source * [For Assessment year 2023-24] Particulars TDS Rates (in %) 1. In the case of a person other than a company 1.1 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 securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; 10 b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; 10 c) any security of the Central or State Government; [i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018] 10 d) interest on any other security 10 Section 194: Income by way of dividend 10 Section 194A: Income by way of interest other than “Interest on securities” 10 Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30 Section 194BB: Income by way of winnings from horse races 30 Section 194C: Payment to contractor/sub-contractor a) HUF/Individuals 1 b) Others 2 Section 194D: Insurance commission 5 Section 194DA: Payment in res...

Download Latest TDS Rates Chart for FY 2022-23 PDF You can download the Latest TDS Rates Chart for FY 2022-23 PDF for free using the direct download link given at the bottom of this article. Latest TDS Rates Chart for FY 2022-23 PDF TDS is the amount of tax which is deducted by the employer or deductor from the taxpayer and is deposited to the Income Tax Department on behalf of him/her. The TDS rates are set on the basis of the age bracket and income of different individuals. TDS or Tax Deducted at Source is a specific amount that is reduced when a certain payment like salary, commission, rent, interest, professional fees, etc. is made. The person who makes the payment deducts tax at the source, while the person who receives a payment/income has the liability to pay tax. It lowers tax evasion because the tax will be collected at the time of making a payment. TDS or Tax Deduction at Source is a process by the Government of India (Government of India) to collect income tax at source. It is a deduction of tax from the actual source of income. It is essentially an indirect method of collecting taxes that combines the concepts of “pay as you earn” and “collect as you earn”. Section Nature of Payment Threshold Individual/HUF Others 192 Salary Taxable Income liable to Tax Normal Slab Rate OR New Tax Regime Slab Rate as opted by the employee. OPTION TO CHOOSE BETWEEN NEW AND OLD TAX SLAB REGIME FOR SALARIED EMPLOYEES NA 192A Premature withdrawal from EPF 50,000 10% NA 193 Interest...

1) Analysis of Section 194J of Income Tax Act, 1961 Every person other than an individual or a HUF, who is responsible for paying to a resident any sum by way of – (i) fees for professional services; or (ii) fees for technical services; or (iii) any remuneration or fees or commission, by whatever name called, other than those on which tax is deductible under section 192, to a director of a company; or (iv) royalty, or (v) non-compete fees referred to in section 28(va) shall deduct tax at source at the rate of (a) 2% in case of fees for technical services (not being professional services) or royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; and (b) 10% in other cases (c) However, in case of a payee, engaged only in the business of operation of call centre, the tax shall be deducted at source @2%. 2) Time of deduction The deduction is to be made at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier. Where any sum is credited to any account, whether called suspense account or by any other name, in the books of accounts of the person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and tax has to be deducted accordingly. 3) Threshold limit for deducting tax • Tax has to be deducted in case the payment is greater than ₹ 30,000 during the year. S...

• • • • • • • • What is Section 194J? TDS u/s 194J needs to be deducted by a deductor other than an individual or a HUF (not liable to tax audit) @ 10% on any amount paid or payable to any person which is in excess of Rs. 30,000 as: • Fees for professional services • Fees for technical services • Any remuneration or fees or commission by whatever name called paid to a director ( other than salary) • Royalty • Any sum referred to in clause (VA) of section 28. What is the meaning of Professional fees? Professional fees are paid in lieu of services provided by a person in course of carrying on legal, medical, engineering, or architectural profession or the profession of accountancy or interior decoration or technical consultancy or advertising, or such profession as is notified by the Board for the purpose of section 44AA. Fees for Technical Services mean fees paid for rendering any managerial, technical, or consultancy services. When to deduct TDS under section 194J? TDS shall be deducted at the time of: • Date of Payment OR • Date of Invoice Whichever is earlier It shall be noted that if the payee credits such amount to the “suspense account” or any other account by whatever name called, it shall be considered as deemed payment, and also TDS is required to be deducted on such credit. Rate of TDS u/s 194J TDS was applicable at 10% on all the services. However, from FY 2020-21 onwards, the following changes have been made: Explore TDS shall be deducted at the rate of 20% in t...

Frequently Asked Questions on Tax Deduction at Source (TDS) • • INTEREST • PAYMENTS TO CONTRACTORS AND SUB-CONTRACTORS • ROYALTIES • PAYMENTS FOR SPECIFIED SERVICES • RENT • • PAYMENTS ON CONTRACTS FOR PROCUREMENT OF GOODS & SERVICES • COMMISSION • PAYMENTS TO CONSULTANTS • GENERAL QUESTIONS • What is Tax Deduction at Source? Under the system of Tax Deduction at Source (TDS), the payer is required to deduct tax at the time the payment is received by or credited to the account of the payee. This is similar to the PAYE system whereby tax is deducted by employer at the time emoluments are made available to the employee. • Which types of payments would be subject to Tax Deduction at Source? Following types of payments would be subject to Tax Deduction at Source: • Interest • Royalties • Rent • Payments to contractors and sub-contractors • Any sum paid to accountant / accounting firm , architects, attorney / solicitor, barrister, engineers, land surveyors, legal consultant, medical service provider, project managers in construction industry, property valuers, quantity surveyors and tax adviser or his representative as consideration for services rendered by them; • Payment made on contracts by Ministry, Government department, local authority, statutory body or the Rodrigues Regional Assembly; • Payment made to owner of an immovable property or his agent pursuant to section 111B(g); • Payment made to a non-resident for any services rendered in Mauritius pursuant to section 111B(h...

Change Services • Add A Director • Removal/Resignation of Director • Add/Remove a Partner in LLP • Change in LLP Agreement • Change of Registered Office Address • Increase in Authorized Capital • Change in DIN • Surrender Your DIN • Appointment of Auditors • Share Transfer & Transmission • Company Name Change • LLP Name Change • MOA/AOA Amendment • MOA/AOA Printing Financial Year 2022-23- TDS Rate Chart (AY 2023-24) When Finance Minister Nirmala Sitharaman announced budget 2022, there was no changes made in the TDS rates for FY 2022-23 hence the old rates without giving the effect of Covid reduction of 25% shall be applicable for FY 2022-23. That means, the TDS rate chart for FY 2022-23 (AY 2023-24) remains the same as it was in the financial year 2021-22. Table of Content • • • • However, there are the addition of certain sections as per the update in Union Budget 2022: • For the transfer of virtual digital assets, a person is liable for a 1% Tax Deduction at Source (TDS) at the moment of payment under new section 194S. • It is suggested to change the amount on which TDS should be deducted when selling immovable property under Section 194-IA. The individual purchasing the property shall deduct 1 percent of the amount paid/credited, or the stamp duty value of the property, whichever is greater. What is TDS? The TDS stands for TDS Rate Chart For Financial Year 2022-23 and Assessment Year 2023-24 Section of the Income-tax Act Nature of Payment Rate of TDS Remarks 192 Salary ...