Income tax & TDS rules

[etaxmentor]

Hi friends,

Can anybody fwd me the rules of income tax and TDS

My father wants to know about Rules for Income Tax & TDS. So tell me what should I do to find rules related to Income Tax & TDS? Also provide Tex deduction rate list.

[pawan]

Tax Deducted at Source or TDS is a type of tax that is deducted from an individuals income on a periodic or occasional basis.

TDS can be applicable for income that are regular as well as irregular in nature.

Income Tax Act, 1961 regulates TDS in India.

TDS rule directs the payee or employer to deduct a certain amount of tax before making full payment to the receiver.

TDS is applicable for salary, commission, professional fees, interest, rent, etc.

TDS is collected at source without the calculation of investment that is eligible for tax deductions.

Income and expenditure such as salary, lotteries, interests from banks, payment of commissions, rent payment, payments to freelancers, etc. fall under the ambit of TDS.

Rates for tax deduction at source 2017-18:

Section 192: Payment of salary According to Income Slab as specified above

Section 192A: Payment of accumulated balance of
provident fund which is taxable in the hands of an
employee (with effect from 01.06.2015). 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 recognized 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; 10

d) interest on any other security 10

Section 194: Dividend other than the dividend as referred
to in Section 115-O 10

Section 194A: Income by way of interest other than "Interest
on securities" from banks and other sources 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 (10% till Assessment year 2016-17)

Section 194DA: Payment in respect of life insurance policy 1 (2% till 31-5-2016)

Section 194EE: Payment in respect of deposit under National
Savings scheme 10 (20% till 31-5-2016)

Section 194F: Payment on account of repurchase of unit by
Mutual Fund or Unit Trust of India 20

Section 194G: Commission, etc., on sale of lottery tickets 5 (10% till 31-5-2016)

Section 194H: Commission or brokerage 5 (10% till 31-5-2016)