TDS on salary is deducted under section 192 of the income tax act. TDS is deducted on the basis of actual payment of salary and not during the accrual of salary. Tax will also be deducted if your employer pays salary in advance to you or you receive arrears from him. TDS is deducted only when your eRead more
TDS on salary is deducted under section 192 of the income tax act. TDS is deducted on the basis of actual payment of salary and not during the accrual of salary. Tax will also be deducted if your employer pays salary in advance to you or you receive arrears from him.
TDS is deducted only when your estimated salary is more than the basic exemption limit.
The taxable salary of the employee is calculated after taking into consideration all the deductions allowed and then tax is calculated on that taxable salary according to the tax rate applicable to you. This Tax is deducted from your salary as TDS under section 192 by the employer.
Form 16A is also a TDS Certificate. Form 16A is applicable for TDS on Income Other than Salary while Form 16 is for only salary income. For example, a Form 16A shall be issued to you when the bank deducts TDS on interest credited on fixed deposits or for TDS deducted on insurance commission, or forRead more
Form 16A is also a TDS Certificate. Form 16A is applicable for TDS on Income Other than Salary while Form 16 is for only salary income.
For example, a Form 16A shall be issued to you when the bank deducts TDS on interest credited on fixed deposits or for TDS deducted on insurance commission, or for TDS deducted on your rent receipts.
It means when TDS is deducted on any other income than salary then form 16A is issued.
Likewise, form 16, form 16A also has details of the name and address of deductor/deductee, PAN/TAN details, challan details of TDS deposited. It also has details of income you have earned and the TDS deducted and deposited on such income.
All details that are there in Form 16A are available on Form 26AS. This can be used to file your return. However, the same is not in the case of Form 16. Details of Form 16 that are available in Form 26AS are only TDS deducted by the employer.
This Form 16 is a certificate, wherein the employer certifies details of the salary earned by the employee during the year and how much TDS has been deducted on that employee. It has two parts – Part A and Part B. Part A has information of the employer & employee, like name & address, PAN anRead more
This Form 16 is a certificate, wherein the employer certifies details of the salary earned by the employee during the year and how much TDS has been deducted on that employee. It has two parts – Part A and Part B.
Part A has information of the employer & employee, like name & address, PAN and TAN details, the period of employment, details of TDS deducted & deposited with the government.
Part B includes details of salary paid, Prerequisites, other incomes, deductions allowed, tax payable, etc.
In simple words, it is an acknowledgment which states that how much TDS was deducted from your salary and When it was deposited with the Income Tax department. Generally, It is issued by 15th June of the year for which it is being issued but, the due date stands extended to 15 August 2020.
Yes, GST applicable on delayed charges recovered from client by a stock broker. UP - Authority on Advance ruling has made it clear that Charges on delayed payment of amount towards trading of securities are taxable under GST. Applicant is engaged primarily in business of providing services of stockRead more
Yes, GST applicable on delayed charges recovered from client by a stock broker.
UP – Authority on Advance ruling has made it clear that Charges on delayed payment of amount towards trading of securities are taxable under GST.
Applicant is engaged primarily in business of providing services of stock broking i.e. purchasing and selling of shares on behalf of clients on exchange platform by virtue of being a recognized BSE/NSE appointed stock broker- Applicant is seeking advance ruling as regards taxability on delayed payments charges on reimbursement of amount by client to applicant, where client failed to pay amount paid to Stock Exchanges for purchase of securities with T+1 (Trading day plus one day) under SEBI Regulation norms and deducted by Stock Exchange from applicant’s account being purchase consideration of securities which are neither goods nor services under GST.
According to Section 15 of the Central Goods and Services Tax Act, 2017/Section 15 of the Uttar Pradesh Goods and Services Tax Act, 2017 the service is Taxable supply.
UP AAR held that delayed payment charges squarely get covered under GST for purpose of taxation.
UP AAR held that applicant is regularly providing services of ‘trading of securities on behalf of customers’ which is a supply of services on which applicant is admittedly paying GST and delayed payments charges are also linked to said services of ‘trading of securities on behalf of customers’ and GST on same shall be payable in view of section 15(2)(d). Thus, applicant is liable to pay GST on delayed payment of charges which are overdue from client towards trading of securities and reimbursed to it.
SPFL Securities Ltd., In re
[2021] (AAR- UTTAR PRADESH)
The service of operating mini AC buses would classify under Heading No. 9966 & taxable at 12% Service of operating mini AC buses by applicant for Brihan Mumbai Electricity Supply Transport Undertaking (BEST) would not be exempt from payment of GST. It is covered under Heading No. 9966 i.e. 'servRead more
The service of operating mini AC buses would classify under Heading No. 9966 & taxable at 12%
Service of operating mini AC buses by applicant for Brihan Mumbai Electricity Supply Transport Undertaking (BEST) would not be exempt from payment of GST.
It is covered under Heading No. 9966 i.e. ‘services by way of giving on hire to a state transport undertaking a motor vehicle meant to carry more than twelve passengers’ in terms of Notification No. 12/2017-CT(R), dated 28-6-2017.
Said case is clearly covered by Sl. No. 10 of Notification No. 11/2017-CT (Rate), dated 28-6-2017 in as much as there is a Rental services of transport vehicles with or without operators and therefore for period up to 13-10-2017, applicant’s activity would attract GST at rate of 18 per cent and after Sl. No. 10 has been amended w.e.f. 13-10-2017, applicant will have to pay GST at rate of 12 per cent
interest earned on account of funds borrowed for specific purpose shall not be taxed but interest received on investment of surplus funds is taxable in other income. In the matter of HP Power Transmission Corporation Ltd Vs DCIT, ITAT gave order. Assessee company HP Power Transmission Corporation LRead more
interest earned on account of funds borrowed for specific purpose shall not be taxed but interest received on investment of surplus funds is taxable in other income.
In the matter of HP Power Transmission Corporation Ltd Vs DCIT, ITAT gave order.
Assessee company HP Power Transmission Corporation Limited (HPPTCL), a Government undertaking, was yet to start commercial operation. As per details of “Other income”, assessee had earned interest on bank deposit during period relevant to AY. Interest was earned on surplus funds available with assessee company but it was not offered for taxation. AO rejected assessee’s submission in that regard and interest was assessed to tax in hands of assessee as ‘income from other sources”. As CIT (A) upheld AO’s order, assessee filed present appeals. Both AO and CIT (A) had held that issue had been decided against assessee by ITAT in preceding years and facts of relevant AY were not different from preceding AYs.
On Appeal, ITAT held that,
Whether interest earned on account of funds borrowed for specific purpose can be taxed – NO: ITAT.
Regarding interest income earned, the relevant fact was nature and composition of interest income earned, i.e, surplus funds and specific purpose funds and not factum of loan. For earlier AY in assessee’s case, when interest was earned by assessee on surplus funds available with it, issue was decided against assessee. For AY in case of HP Power Corporation, assessee had borrowed certain amount from Asian Development Bank (ADB) for specific project and on account of delay in project, parked the amount in temporary investments in FDRs. Interest earned thereon was held by ITAT to be not taxable. Thus, facts during the year were partly different with funds having been borrowed for specific purpose and parked in FDRs as temporary investments on account of delay in project. Thus, distinction in facts in the aforestated two orders was that while in case of assessee in earlier years, interest was found to be earned on surplus funds and hence held taxable, in case of HP Power corporation, interest was earned on specific purpose funds deposited in FDRs on account of delay in execution of projects and therefore, held not taxable. It was thus held that interest received to extent of ADB loan parked in investments in FDRs was not revenue in nature and not liable to be taxed under the head “income from other sources”.
No, a divorced wife can not claim for family pension as she loses the status of a legally wedded wife. However, the legitimate child/children from a divorced wife shall be entitled to the share of family pension which the mother would have received at the time of death of her husband had she not beeRead more
No, a divorced wife can not claim for family pension as she loses the status of a legally wedded wife. However, the legitimate child/children from a divorced wife shall be entitled to the share of family pension which the mother would have received at the time of death of her husband had she not been divorced.
Companies allow their employees different types of leaves like Casual Levees, Earned Leaves, Medical Leave, Gazetted Holidays, etc. Generally, the employee is allowed to either avail of these leaves or carryforward to next year. Sometimes, the employee is also allowed to encash these unutilized leavRead more
Companies allow their employees different types of leaves like Casual Levees, Earned Leaves, Medical Leave, Gazetted Holidays, etc. Generally, the employee is allowed to either avail of these leaves or carryforward to next year. Sometimes, the employee is also allowed to encash these unutilized leaves and can earn a salary against them.
If the employee is given some monetary benefit against his carry forwarded leave then it is called encashment of the leave.
The amount of leave encashment received during the tenure of service with the same employer is fully taxable and no exemption is allowed. It will be treated as party of salary and taxable under the head Income from salary.
The amount of leave encashment received during the tenure of service with the same employer is fully taxable and no exemption is allowed. It will be treated as party of salary and taxable under the head Income from salary.
Yes, You can receive the gratuity before the completion of five years. in the following condition if an employee works less than five continuous years then also he will be eligible to get the gratuity. (i). If the person has worked for 190 days continuously since the end of the 4th year of his emploRead more
Yes, You can receive the gratuity before the completion of five years. in the following condition if an employee works less than five continuous years then also he will be eligible to get the gratuity.
(i). If the person has worked for 190 days continuously since the end of the 4th year of his employment. This is applicable in the case of those who are working in underground mines or working with such organizations which work for less than 6 days a week.
(ii) In the case of employees working with other organizations, this period is 240 days.
How is TDS Deducted from Salary?
TDS on salary is deducted under section 192 of the income tax act. TDS is deducted on the basis of actual payment of salary and not during the accrual of salary. Tax will also be deducted if your employer pays salary in advance to you or you receive arrears from him. TDS is deducted only when your eRead more
TDS on salary is deducted under section 192 of the income tax act. TDS is deducted on the basis of actual payment of salary and not during the accrual of salary. Tax will also be deducted if your employer pays salary in advance to you or you receive arrears from him.
TDS is deducted only when your estimated salary is more than the basic exemption limit.
The taxable salary of the employee is calculated after taking into consideration all the deductions allowed and then tax is calculated on that taxable salary according to the tax rate applicable to you. This Tax is deducted from your salary as TDS under section 192 by the employer.
See lessWhat is the difference between Form 16 and 16A?
Form 16A is also a TDS Certificate. Form 16A is applicable for TDS on Income Other than Salary while Form 16 is for only salary income. For example, a Form 16A shall be issued to you when the bank deducts TDS on interest credited on fixed deposits or for TDS deducted on insurance commission, or forRead more
Form 16A is also a TDS Certificate. Form 16A is applicable for TDS on Income Other than Salary while Form 16 is for only salary income.
For example, a Form 16A shall be issued to you when the bank deducts TDS on interest credited on fixed deposits or for TDS deducted on insurance commission, or for TDS deducted on your rent receipts.
It means when TDS is deducted on any other income than salary then form 16A is issued.
Likewise, form 16, form 16A also has details of the name and address of deductor/deductee, PAN/TAN details, challan details of TDS deposited. It also has details of income you have earned and the TDS deducted and deposited on such income.
All details that are there in Form 16A are available on Form 26AS. This can be used to file your return. However, the same is not in the case of Form 16. Details of Form 16 that are available in Form 26AS are only TDS deducted by the employer.
See lessWhat is Form 16?
This Form 16 is a certificate, wherein the employer certifies details of the salary earned by the employee during the year and how much TDS has been deducted on that employee. It has two parts – Part A and Part B. Part A has information of the employer & employee, like name & address, PAN anRead more
This Form 16 is a certificate, wherein the employer certifies details of the salary earned by the employee during the year and how much TDS has been deducted on that employee. It has two parts – Part A and Part B.
In simple words, it is an acknowledgment which states that how much TDS was deducted from your salary and When it was deposited with the Income Tax department. Generally, It is issued by 15th June of the year for which it is being issued but, the due date stands extended to 15 August 2020.
See lessWhether GST applicable on delayed charges recovered by Stock broker from its clients?
Yes, GST applicable on delayed charges recovered from client by a stock broker. UP - Authority on Advance ruling has made it clear that Charges on delayed payment of amount towards trading of securities are taxable under GST. Applicant is engaged primarily in business of providing services of stockRead more
Yes, GST applicable on delayed charges recovered from client by a stock broker.
UP – Authority on Advance ruling has made it clear that Charges on delayed payment of amount towards trading of securities are taxable under GST.
Applicant is engaged primarily in business of providing services of stock broking i.e. purchasing and selling of shares on behalf of clients on exchange platform by virtue of being a recognized BSE/NSE appointed stock broker- Applicant is seeking advance ruling as regards taxability on delayed payments charges on reimbursement of amount by client to applicant, where client failed to pay amount paid to Stock Exchanges for purchase of securities with T+1 (Trading day plus one day) under SEBI Regulation norms and deducted by Stock Exchange from applicant’s account being purchase consideration of securities which are neither goods nor services under GST.
According to Section 15 of the Central Goods and Services Tax Act, 2017/Section 15 of the Uttar Pradesh Goods and Services Tax Act, 2017 the service is Taxable supply.
UP AAR held that delayed payment charges squarely get covered under GST for purpose of taxation.
UP AAR held that applicant is regularly providing services of ‘trading of securities on behalf of customers’ which is a supply of services on which applicant is admittedly paying GST and delayed payments charges are also linked to said services of ‘trading of securities on behalf of customers’ and GST on same shall be payable in view of section 15(2)(d). Thus, applicant is liable to pay GST on delayed payment of charges which are overdue from client towards trading of securities and reimbursed to it.
SPFL Securities Ltd., In re
See less[2021] (AAR- UTTAR PRADESH)
Is service by way of giving on hire a Mini Bus to state transport authority covered under GST? What will be the GST rate?
The service of operating mini AC buses would classify under Heading No. 9966 & taxable at 12% Service of operating mini AC buses by applicant for Brihan Mumbai Electricity Supply Transport Undertaking (BEST) would not be exempt from payment of GST. It is covered under Heading No. 9966 i.e. 'servRead more
The service of operating mini AC buses would classify under Heading No. 9966 & taxable at 12%
Service of operating mini AC buses by applicant for Brihan Mumbai Electricity Supply Transport Undertaking (BEST) would not be exempt from payment of GST.
It is covered under Heading No. 9966 i.e. ‘services by way of giving on hire to a state transport undertaking a motor vehicle meant to carry more than twelve passengers’ in terms of Notification No. 12/2017-CT(R), dated 28-6-2017.
Said case is clearly covered by Sl. No. 10 of Notification No. 11/2017-CT (Rate), dated 28-6-2017 in as much as there is a Rental services of transport vehicles with or without operators and therefore for period up to 13-10-2017, applicant’s activity would attract GST at rate of 18 per cent and after Sl. No. 10 has been amended w.e.f. 13-10-2017, applicant will have to pay GST at rate of 12 per cent
See lessIs interest received on FDRs made from temporary investment of fund received from ADB is taxable in Income Tax Act?
interest earned on account of funds borrowed for specific purpose shall not be taxed but interest received on investment of surplus funds is taxable in other income. In the matter of HP Power Transmission Corporation Ltd Vs DCIT, ITAT gave order. Assessee company HP Power Transmission Corporation LRead more
interest earned on account of funds borrowed for specific purpose shall not be taxed but interest received on investment of surplus funds is taxable in other income.
In the matter of HP Power Transmission Corporation Ltd Vs DCIT, ITAT gave order.
Assessee company HP Power Transmission Corporation Limited (HPPTCL), a Government undertaking, was yet to start commercial operation. As per details of “Other income”, assessee had earned interest on bank deposit during period relevant to AY. Interest was earned on surplus funds available with assessee company but it was not offered for taxation. AO rejected assessee’s submission in that regard and interest was assessed to tax in hands of assessee as ‘income from other sources”. As CIT (A) upheld AO’s order, assessee filed present appeals. Both AO and CIT (A) had held that issue had been decided against assessee by ITAT in preceding years and facts of relevant AY were not different from preceding AYs.
On Appeal, ITAT held that,
Whether interest earned on account of funds borrowed for specific purpose can be taxed – NO: ITAT.
Regarding interest income earned, the relevant fact was nature and composition of interest income earned, i.e, surplus funds and specific purpose funds and not factum of loan. For earlier AY in assessee’s case, when interest was earned by assessee on surplus funds available with it, issue was decided against assessee. For AY in case of HP Power Corporation, assessee had borrowed certain amount from Asian Development Bank (ADB) for specific project and on account of delay in project, parked the amount in temporary investments in FDRs. Interest earned thereon was held by ITAT to be not taxable. Thus, facts during the year were partly different with funds having been borrowed for specific purpose and parked in FDRs as temporary investments on account of delay in project. Thus, distinction in facts in the aforestated two orders was that while in case of assessee in earlier years, interest was found to be earned on surplus funds and hence held taxable, in case of HP Power corporation, interest was earned on specific purpose funds deposited in FDRs on account of delay in execution of projects and therefore, held not taxable. It was thus held that interest received to extent of ADB loan parked in investments in FDRs was not revenue in nature and not liable to be taxed under the head “income from other sources”.
- ITA No. 789/Chd/2019
- ITA No. 790/Chd/2019
See lessCan a divorced wife claim for family pension?
No, a divorced wife can not claim for family pension as she loses the status of a legally wedded wife. However, the legitimate child/children from a divorced wife shall be entitled to the share of family pension which the mother would have received at the time of death of her husband had she not beeRead more
No, a divorced wife can not claim for family pension as she loses the status of a legally wedded wife. However, the legitimate child/children from a divorced wife shall be entitled to the share of family pension which the mother would have received at the time of death of her husband had she not been divorced.
See lessWhat is encashment of Leave?
Companies allow their employees different types of leaves like Casual Levees, Earned Leaves, Medical Leave, Gazetted Holidays, etc. Generally, the employee is allowed to either avail of these leaves or carryforward to next year. Sometimes, the employee is also allowed to encash these unutilized leavRead more
Companies allow their employees different types of leaves like Casual Levees, Earned Leaves, Medical Leave, Gazetted Holidays, etc. Generally, the employee is allowed to either avail of these leaves or carryforward to next year. Sometimes, the employee is also allowed to encash these unutilized leaves and can earn a salary against them.
If the employee is given some monetary benefit against his carry forwarded leave then it is called encashment of the leave.
See lessIs encashment of earned leave during the service taxable ?
The amount of leave encashment received during the tenure of service with the same employer is fully taxable and no exemption is allowed. It will be treated as party of salary and taxable under the head Income from salary.
The amount of leave encashment received during the tenure of service with the same employer is fully taxable and no exemption is allowed. It will be treated as party of salary and taxable under the head Income from salary.
See lessCan I receive my gratuity before completion of Five year of service?
Yes, You can receive the gratuity before the completion of five years. in the following condition if an employee works less than five continuous years then also he will be eligible to get the gratuity. (i). If the person has worked for 190 days continuously since the end of the 4th year of his emploRead more
Yes, You can receive the gratuity before the completion of five years. in the following condition if an employee works less than five continuous years then also he will be eligible to get the gratuity.
(i). If the person has worked for 190 days continuously since the end of the 4th year of his employment. This is applicable in the case of those who are working in underground mines or working with such organizations which work for less than 6 days a week.
(ii) In the case of employees working with other organizations, this period is 240 days.
See less