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CA Vishnu Ram
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  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Procedure for Obtaining a Lower TDS Deduction Certificate under the Income Tax Act (Section 197) A taxpayer can apply for a Lower TDS Deduction Certificate under Section 197 of the Income Tax Act if they believe that their total income justifies a lower or nil rate of TDS deduction. The procedure isRead more

    Procedure for Obtaining a Lower TDS Deduction Certificate under the Income Tax Act (Section 197)

    A taxpayer can apply for a Lower TDS Deduction Certificate under Section 197 of the Income Tax Act if they believe that their total income justifies a lower or nil rate of TDS deduction. The procedure is as follows:

    Step-by-Step Process to Obtain Lower TDS Certificate

    Step 1: Eligibility Check

    ✔ The applicant should be earning income where TDS is applicable (e.g., salary, interest, professional fees, rent, etc.).
    ✔ The applicant must justify that the TDS deduction at normal rates would result in excess tax deduction leading to a refund situation.

    Step 2: Online Application on TRACES Portal

    1. Login to TRACES (https://www.tdscpc.gov.in/) using the taxpayer’s PAN and password.
    2. Go to “Statements / Forms” > “Request for Form 13 (Lower/Nil Deduction Certificate)”.
    3. Fill in the details:
      • Personal details (PAN, Address, Contact Info, etc.)
      • Financial details (Income, Deductions, Tax Liability, etc.)
      • Nature of income for which lower TDS is requested
      • Justification for lower deduction (like previous year’s tax filings showing refund situations).
    4. Attach supporting documents:
      • Computation of estimated total income and tax liability
      • Copies of previous years’ ITRs
      • Financial statements (if applicable)
      • Relevant agreements, contracts, or invoices
    5. Submit the application online.

    Step 3: Processing by the Assessing Officer (AO)

    ✔ The Assessing Officer (AO) reviews the application and may request additional documents.
    ✔ If satisfied, the AO will issue a Lower/Nil TDS Deduction Certificate (Form 13).
    ✔ The certificate specifies the validity period and applicable TDS rate (which could be lower than the standard rate).

    Step 4: Submission to Deductor

    ✔ The taxpayer must provide the lower TDS certificate to the deductor (payer).
    ✔ The deductor will deduct TDS at the specified lower rate instead of the standard rate.

    Key Points to Remember:

    ✔ Validity: The certificate is valid for a financial year or a specific period mentioned in the approval.
    ✔ Deadline: Apply at the beginning of the financial year to avoid excess TDS deductions.
    ✔ Form 15G/15H: For individuals with income below the taxable limit, Form 15G (for non-senior citizens) or 15H (for senior citizens) can be submitted instead of Form 13.

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CA Vishnu Ram
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  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Use of Form 15CA and 15CB under the Income Tax Act Forms 15CA and 15CB are required for making remittances (payments) to non-residents to ensure compliance with TDS (Tax Deducted at Source) provisions under the Income Tax Act. These forms help track foreign remittances and prevent tax evasion. 🔹 WhaRead more

    Use of Form 15CA and 15CB under the Income Tax Act

    Forms 15CA and 15CB are required for making remittances (payments) to non-residents to ensure compliance with TDS (Tax Deducted at Source) provisions under the Income Tax Act. These forms help track foreign remittances and prevent tax evasion.

    🔹 What is Form 15CA?

    📌 Purpose: Form 15CA is a declaration by the remitter (payer) stating whether TDS is applicable on the foreign remittance. It helps the Income Tax Department track taxable foreign payments.
    📌 Who files it?: The remitter (payer) files Form 15CA electronically on the Income Tax e-Filing portal.
    📌 When is it required?:

    • If the remittance is taxable in India and TDS is deducted.
    • If the remittance amount exceeds ₹5 lakh, then Form 15CB is also required.

    🚀 Key Point: Form 15CA is MANDATORY in most cases, even if TDS is not applicable.

    🔹 What is Form 15CB?

    📌 Purpose: Form 15CB is a certificate issued by a Chartered Accountant (CA) confirming the taxability of a foreign remittance. The CA verifies:

    • Nature & purpose of the remittance
    • Taxability under the Income Tax Act & DTAA (Double Taxation Avoidance Agreement)
    • TDS rate and deduction compliance

    📌 Who issues it?: A Chartered Accountant (CA) issues Form 15CB before submitting Form 15CA (Part C).

    📌 When is it required?:

    • If the remittance exceeds ₹5 lakh in a financial year.
    • If the remittance is taxable in India under the Income Tax Act.
    • If a DTAA benefit is claimed.

    🚀 Key Point: Form 15CB is NOT required for transactions where:
    ✔️ Remittance is covered under Rule 37BB (specified list of exempted payments).
    ✔️ Payment is below ₹5 lakh in a financial year.

    🔹 When Do You Need Both Forms?

    Remittance Amount Taxable in India? Form 15CA Required? Form 15CB Required?
    Below ₹5 lakh No ❌ Not Required ❌ Not Required
    Below ₹5 lakh Yes ✅ Required (Part A) ❌ Not Required
    Above ₹5 lakh No ✅ Required (Part D) ❌ Not Required
    Above ₹5 lakh Yes ✅ Required (Part C) ✅ Required

    🔹 How to File Form 15CA & 15CB?

    1️⃣ Obtain Form 15CB from a CA (if required).
    2️⃣ Log in to the Income Tax e-Filing Portal https://www.incometax.gov.in/.
    3️⃣ Navigate to “File Income Tax Forms” > “Form 15CA”.
    4️⃣ Fill in details & submit the form.
    5️⃣ Provide acknowledgment to the bank for processing the remittance.

    🔹 Key Takeaways

    ✔ Form 15CA is filed by the remitter for foreign remittances.
    ✔ Form 15CB is required only if the remittance exceeds ₹5 lakh and is taxable in India.
    ✔ These forms help track foreign payments and ensure TDS compliance.
    ✔ Banks will not process foreign remittances without Form 15CA (and 15CB, if required).

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CA Vishnu Ram
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  1. CA Vishnu Ram Enlightened

    TDS Rates and Threshold Limits for FY 2025-26 TDS (Tax Deducted at Source) is applicable on various payments such as salary, rent, professional fees, and purchase of goods. Below is a simplified table showing applicable TDS rates and their threshold limits. Section Nature of Payment TDS Rate (%) ThrRead more

    TDS Rates and Threshold Limits for FY 2025-26

    TDS (Tax Deducted at Source) is applicable on various payments such as salary, rent, professional fees, and purchase of goods. Below is a simplified table showing applicable TDS rates and their threshold limits.

    Section Nature of Payment TDS Rate (%) Threshold Limit (₹) Remarks
    192 Salary As per slab rates Basic exemption limit TDS deducted as per applicable income tax slab rates.
    193 Interest on Securities 10 10,000 Threshold introduced; previously, there was no threshold.
    194 Dividend Payments 10 10,000 Threshold increased from ₹5,000 to ₹10,000.
    194A Interest other than on Securities 10 50,000 (General)
    1,00,000 (Senior Citizens)    		 Thresholds increased from ₹40,000 and ₹50,000 respectively.
    194C Payment to Contractors 1 (Individual/HUF)
    2 (Others)    		 30,000 (Single Payment)
    1,00,000 (Aggregate Annual)    		 No change in thresholds.
    194H Commission or Brokerage 5 15,000 No change in threshold.
    194I Rent 10 (Land/Building)
    2 (Plant/Machinery)    		 6,00,000 Threshold increased from ₹2,40,000 to ₹6,00,000.
    194J Professional Fees 10 50,000 Threshold increased from ₹30,000 to ₹50,000.
    194N Cash Withdrawals 2 1,00,00,000 No change in threshold.
    194Q Purchase of Goods 0.1 50,00,000 Applicable if buyer’s turnover exceeds ₹10 crore.
    206C(1H) Sale of Goods (TCS) 0.1 50,00,000 Applicable if seller’s turnover exceeds ₹10 crore.

    Key Points to Remember:

    ✅ If PAN is not provided, a higher TDS rate (usually 20%) is applicable.
    ✅ Some sections have lower TDS rates for certain payments made to individuals.
    ✅ TDS must be deducted at the time of payment or credit, whichever is earlier.

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CA Vishnu Ram
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  1. Advocate Dr Amit Dua Explainer

    Delay in Advance Tax Payment Taxpayers who are having a tax liability of more than Rs.10,000 should remit Advance Tax to the government before the due date. However, senior citizens who are not having any business income need not pay advance tax. The due date for advance tax payment and procedure foRead more

    Delay in Advance Tax Payment

    Taxpayers who are having a tax liability of more than Rs.10,000 should remit Advance Tax to the government before the due date. However, senior citizens who are not having any business income need not pay advance tax. The due date for advance tax payment and procedure for remitting advance tax payment is reckoned as per the provisions of the Income Tax Act. In this article, we look at Section 234B and Section 234C of the Income Tax Act which deals with penalty for delay in advance tax payment.

     

    Due Date for Advance Tax Payment

    The due date for advance payment of tax is as follows:

     

    Taxpayer Type By 15th June By 15th September By 15th December By 15th March

    All types of taxpayers (other than those who opted for presumptive taxation scheme) Upto 15% of advance tax Upto 45% of advance tax Upto 75% of advance tax Upto 100% of advance tax

    Taxpayers who opted for the presumptive taxation scheme NIL NIL NIL Upto 100% of advance tax

    Section 234B – Penalty for Not Paying Advance Tax Payment

    The penalty under Section 234B of the Income Tax Act is applicable if:

     

    A taxpayer has failed to pay advance tax though he is liable to pay advance tax; or

    The advance tax paid by the taxpayer is less than 90% of the assessed tax.

    Penalty for Default in Advance Tax Payment

    Under section 234B, interest for default in payment of advance tax is levied at 1% simple interest per month or part of a month. The penalty interest is levied on the amount of unpaid advance tax. If there is a shortfall in payment of advance tax, then interest is levied on the amount by which advance tax is short paid.

     

    The penal interest for default in advance tax payment will be levied from 1st April of the relevant financial year till the date of determination of income under Section 143(1) or when a regular assessment is made, then till the date of such a regular assessment.

     

    In case the taxpayer has paid any tax before the completion of the assessment, then interest will be levied as follows:

     

    Upto the date of payment of self-assessment tax, interest will be computed on the amount of unpaid advance tax.

    From the date of payment of self-assessment tax, interest will be levied on the unpaid amount of advance tax after deducting the self-assessment tax paid by the taxpayer.

    In case income is increased due to an income tax assessment or recomputation, interest will be levied on the differential amount from the first day of the assessment year till the date of assessment/re-computation.

     

    Section 234C – Penalty for Short Payment of Advance Tax

    Section 234C is applicable if a taxpayer has paid advance tax which is less than the required amount. Since the advance tax is paid based on estimated tax liability, only tax payment that falls below the threshold below will be liable for a penalty for Section 234C of the Income Tax Act.

     

    Penal interest under Section 234C is levied only if:

     

    Advance tax paid on or before 15th June is less than 12% of advance tax payable.

    Advance tax paid on or before 15th September is less than 36% of advance tax payable.

    Advance tax paid on or before 15th December is less than 75% of advance tax payable.

    Advance tax paid on or before 15th March is less than 100% of advance tax payable

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CA Vishnu Ram
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  1. CA Vishnu Ram Enlightened

    Interest on Default in Payment of Advance Tax – Sections 234B & 234C Paying Advance Tax on time is crucial to avoid interest penalties under the Income Tax Act, 1961. If you miss the deadline or pay an insufficient amount, interest is levied under Sections 234B and 234C. 1. When is Interest PayaRead more

    Interest on Default in Payment of Advance Tax – Sections 234B & 234C

    Paying Advance Tax on time is crucial to avoid interest penalties under the Income Tax Act, 1961. If you miss the deadline or pay an insufficient amount, interest is levied under Sections 234B and 234C.

    1. When is Interest Payable Under Section 234B?

    Interest under Section 234B is applicable when:
    ✅ You have paid less than 90% of your total tax liability before the end of the financial year.
    ✅ The remaining tax liability is ₹10,000 or more after deducting TDS/TCS and advance tax.

    📌 Interest Calculation (Sec 234B)

    • Interest @ 1% per month or part of the month is charged on the unpaid tax amount.
    • It is calculated from April 1 of the assessment year till the date of actual payment.

    📌 Example:

    • Total Tax Liability: ₹1,50,000
    • Advance Tax Paid: ₹1,20,000 (80%) → Less than 90% paid
    • Unpaid Tax: ₹30,000
    • Interest: 1% per month from April till payment date

    2. When is Interest Charged Under Section 234C?

    Interest under Section 234C applies when advance tax is not paid as per the prescribed due dates:

    Due Date Advance Tax to be Paid Applicable Interest
    15th June 15% of total tax liability 1% per month on shortfall
    15th September 45% of total tax liability 1% per month on shortfall
    15th December 75% of total tax liability 1% per month on shortfall
    15th March 100% of total tax liability 1% per month on shortfall

    📌 Example:

    • Total Tax Liability: ₹2,00,000
    • Paid by 15th June: ₹20,000 (instead of ₹30,000) → Shortfall of ₹10,000
    • Interest: 1% on ₹10,000 for 1 month

    How to Avoid Interest on Advance Tax?

    ✔ Plan your tax payments based on estimated income.
    ✔ Use TDS/TCS credits to reduce advance tax liability.
    ✔ Pay any shortfall before due dates to avoid interest.
    ✔ Use a tax calculator to check advance tax obligations

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CA Vishnu Ram
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  1. CA Vishnu Ram Enlightened

    Interest on Failure to Deduct, Collect, or Pay TDS Under the Income Tax Act If you fail to deduct, collect, or deposit TDS/TCS on time, the Income Tax Act, 1961 imposes interest penalties under Sections 201(1A) and 206C(7). Interest for Failure to Deduct TDS – Section 201(1A) If a person responsibleRead more

    Interest on Failure to Deduct, Collect, or Pay TDS Under the Income Tax Act

    If you fail to deduct, collect, or deposit TDS/TCS on time, the Income Tax Act, 1961 imposes interest penalties under Sections 201(1A) and 206C(7).

    Interest for Failure to Deduct TDS – Section 201(1A)

    If a person responsible for deducting TDS fails to deduct or deducts a lower amount, the following interest is charged:

    Scenario Interest Rate Period of Interest Calculation
    TDS not deducted 1% per month From due date of deduction till actual deduction
    TDS deducted but not deposited 1.5% per month From deduction date till actual payment to the government

    📌 Example:

    • TDS Due: ₹50,000 (to be deducted on 10th July)
    • Actual Deduction: 10th September → 1% per month for 2 months = ₹1,000
    • Deposit Date: 10th October → 1.5% per month for 1 month = ₹750
    • Total Interest: ₹1,750

    Read:What is the penalty for non filing of quarterly TDS return?

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CA Vishnu Ram
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  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Starting a business in India? The government provides several tax benefits to encourage startups and ease their financial burden. Below is a simple breakdown of key tax advantages available to eligible startups. 1. Tax Holiday (Section 80-IAC) – 100% Profit Deduction Who can claim? DPIIT-recognizedRead more

    Starting a business in India? The government provides several tax benefits to encourage startups and ease their financial burden. Below is a simple breakdown of key tax advantages available to eligible startups.

    1. Tax Holiday (Section 80-IAC) – 100% Profit Deduction

    • Who can claim? DPIIT-recognized startups registered as a Private Limited Company or LLP.
    • What’s the benefit?
      • 100% tax exemption on profits for three consecutive years within the first ten years of incorporation.
      • Previously, only startups incorporated until March 31, 2024, could avail of this benefit. Now, this has been extended to March 31, 2030.

    2. Exemption from Angel Tax (Section 56(2)(viib))

    • What’s Angel Tax? If a startup raises funds from an investor at a price higher than the fair market value (FMV), the extra amount is taxed as “Income from Other Sources.”
    • Who is exempt? DPIIT-recognized startups with total share capital & premium not exceeding ₹25 crore.
    • What’s the benefit? Startups don’t have to pay tax on funds received from Indian investors above FMV.

    3. Carry Forward of Losses (Section 79)

    • Who can benefit? Startups that incur losses within the first seven years of incorporation.
    • What’s the condition? Even if there’s a change in shareholding, the losses can still be set off as long as at least 51% of original shareholders remain.

    4. Lower Corporate Tax Rate

    • For regular domestic companies: 22% corporate tax (if no other exemptions are claimed).
    • For new manufacturing startups (set up after October 1, 2019, and starting operations before March 31, 2024): 15% tax rate.

    5. Other Benefits

    ✅ Self-Certification for Compliance: Startups can self-certify compliance with labor & environmental laws for 3-5 years.
    ✅ Faster Patent & Trademark Registration: Startups get a 50% rebate on trademark fees and 80% rebate on patent filing fees.

    Final Thoughts

    These tax benefits help startups reduce costs, improve cash flow, and grow faster. However, startups must ensure they meet eligibility conditions and file the necessary documents on time to claim these benefits.

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CA Vishnu Ram
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  1. Ramesh Sharma Enlightened

    In the case of HUF, the Aadhaar number of Karta shall be linked with the PAN card of HUF. In the case of other non-corporate organizations, Aadhaar number of the principal person of the organization shall be linked with the PAN card of the organization.

    In the case of HUF, the Aadhaar number of Karta shall be linked with the PAN card of HUF. In the case of other non-corporate organizations, Aadhaar number of the principal person of the organization shall be linked with the PAN card of the organization.

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CA Vishnu Ram
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PAN of PM CARES Fund is: AAETP3993P Address of PM CARES Fund is: Prime Minister’s Office South Block New Delhi-110011

  1. CA Vishnu Ram Enlightened
    This answer was edited.

    PAN of PM CARES Fund is: AAETP3993P Address of PM CARES Fund is: Prime Minister's Office South Block New Delhi-110011

    PAN of PM CARES Fund is:

    AAETP3993P

    Address of PM CARES Fund is:

    Prime Minister’s Office

    South Block

    New Delhi-110011

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CA Vishnu Ram
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  1. mkg Teacher

    While the Income Tax Act, 1961 does not contain an explicit standalone definition of a "startup," the term is used in various tax incentives and regulatory provisions. For practical purposes—including the availment of certain tax benefits—the government relies on the criteria laid down under the StaRead more

    While the Income Tax Act, 1961 does not contain an explicit standalone definition of a “startup,” the term is used in various tax incentives and regulatory provisions. For practical purposes—including the availment of certain tax benefits—the government relies on the criteria laid down under the Startup India Action Plan (issued by the Department for Promotion of Industry and Internal Trade, DPIIT).

    Adopted Criteria (as per Startup India):
    An enterprise is generally recognized as a startup if it meets these conditions:

    • Incorporation/Registration: It must be incorporated or registered in India on or after April 1, 2016.

    • Age of the Entity: It should be less than 10 years old from the date of incorporation or registration.

    • Turnover Limit: Its annual turnover must not exceed ₹100 crores in any financial year.

    • Innovation and Scalability: It should be engaged in innovative activities, development or improvement of products, processes, or services, or demonstrate a scalable business model with the potential for significant employment generation or wealth creation.

    For tax purposes, when a business applies for startup-related benefits under various notifications (for example, schemes providing profit-linked incentives or tax exemptions), the tax authorities look to the recognition granted under the Startup India guidelines.

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