COMPUTING TDS ON SALARY
Report all eligible exemptions & deductions to your employer to ensure non-deduction of excess TDS from your salary!
Section 192 of the Income-tax Act prescribes for tax deduction at source out of payments representing any income chargeable to tax under the head ‘Salaries’. The provisions for tax deduction at source from Salaries during each Financial Year are explained by the Central Board of Direct Taxes (CBDT) under a special Circular.
TDS under Section 192 is required to be calculated on the basis of the prevalent rates of income-tax on the estimated salary income and is required to be deducted on a proportionate basis at the time of each payment. For the said purpose the employer is required to consider various exemptions and deductions as prescribed under the Circular while computing the actual amount of income-tax to be deducted. (more…)
KBC – NO FREEDOM FROM TAX!
All winnings from Lottery or Games are taxed at flat rate of 30% & TDS is mandatory before Prize is handed over!
Though the popular TV Game Show KBC (Kaun Banega Crorepati) will launch its 5th Avataar on India’s 64th Independence Day 15th August, 2011, it will indeed be ironical that its prize winnings will enjoy ‘no freedom from tax.’
Participants receiving cheques signed by Big B for the full prize money as shown on your TV screen is mere hype, since no one really gets to take anything home before the taxman gets his pound of flesh (read tax) at a flat 30.9% from the same! (more…)
HOW TO ENSURE NO TAX DEDUCTION?
All you wanted to know about
TDS on Interest in Simple FAQs
TDS Becomes Less Taxing!
TDS Rates Rationalized
No Messy Computation Of Cess & Surcharge
October 1, 2009, has also brought some welcome provisions of rationalization of TDS rates and reducing multiple classifications (see Box). (more…)
NRIs treated as Not Required Indians
Harsh, Illogical & Discriminatory Taxing Provisions For NRIs!
Proposals That Will Hurt The Global Indian Sentiment
Flat Rate of Tax
- 20% flat tax on interest & other investment income.
- 30% flat tax on all capital gains.
- Apart from 20% & 30% TDS on above, TDS at a baffling rate of 35% prescribed on all residual income.
No Personal Exemption
- No personal exemption or deduction allowed in computing the above income treated as ‘income from special sources.’
Weird Interpretation
- Poor drafting leads to such a weird interpretation that transfer of a capital asset may attract 30% tax on gross sale consideration.
What a Discrimination?
- Ironical but true! Non-Indian sports-persons, say Ricky Ponting or Shoaib Akhtar, required to pay a concessional tax of 10% on their game, advertisement and column earnings in India, thus enjoying a more privileged tax status than our own sons of the soil living abroad.
