TDS sections

Types of income subject to deduction
of tax at source

1.The following types of incomes are mainly subject to deduction of tax at source :

(a)
Salaries — Section 192.

(b)
Interest on securities — Section 192.

(c)
Dividend - Section 194.

(d)
Other interest — Section 194A.

(e)
Winnings from Lottery or crossword puzzle — Section 194B.

(f)
Winning from horse race — Section 194BB.

(g)
Payment to resident contractors and
sub-contractors — Section 194C.

(h)
Insurance commission — Section 194D.

(i)
Payments to non-resident sportsmen or sports associations —
Section 194E.

(j)
Payments in respect of deposits under the N.S.S. — Section
194EE.

(k)
Payments on account of repurchase of units by Mutual Fund or UTI —
Section 194F.

(l)
Commission, etc., on the sale of lottery tickets — Section
194G.

(m)
Commission or brokerage — Section
194H.

(n)
Rent exceeding Rs. 1,20,000 —
Section 194 I.

(o)
Fees for professional or technical
services — Section 194J.

(p)
Income from UTI units and Mutual Funds — Section 194K

(q)
Other sums payable to non-residents and non-Indian companies only —
Section 195.

(r)
Income from units — Section 196B.

(s)
Income from foreign currency bonds or shares of Indian company —
Section 196 C.

(t)
Income of foreign institutional investors from Securities —
Section 196D

End.,

PF AND ESI

2.
PF AND ESI :

The
PF contribution is 12% of Basic salary from both employee and
employer. For the calculation the maximum limit of Basic is Rs
6500/-. It means even if the employee's basic salary is above Rs
6500/- the employer is liable to contribute only on Rs 6500/-, that
is Rs 780.

However
if an employee so desires he may voluntarily contribute more than
12%. Apart from it an employer also has to pay some administration
charges. I explain you the various accounts of PF challan.

A/c
No 1: PF contribution Account
A/c No 2: PF Admin account
A/c
No 10: EPS account
A/c No 21: EDLIS account
A/c No 22: EDLIS
admin account

PF admin charge = Employer has to pay 1.1 % of
basic
EDLIS: Employer has to pay 0.5% of basic
EDLIS admin
charge:Employer has to pay 0.01% of basic

Total additional
percentage employer has to pay: 1.61% of basic

So employer
has actually to pay 13.61 % of Basic and employee has to pay only 12%
of basic.

Employees complete 12% goes to PF account while
employer contributions' 8.33% goes to Pension fund and 3.67% goes to
PF fund.

End.,

TDS calculator F.Y 09 - 10 & F.Y 10 - 11

Service tax on Rent

Mumbai: Renting premises for business will not invite levy of service tax, the Delhi High Court has ruled.
A division bench comprising Justice B D Ahmed and Justice Rajiv Shakdher passed the order on as many as 26 writ petitions filed by retail majors such as Shopper's Stop, Lifestyle International and Fun Multiplex, challenging the notification issued by the finance ministry in 2007 vide which rent was made taxable.
"We hold that law does not in terms entail that renting out of immovable property for use in the course of furtherance of business or commerce would by itself constitute a taxable service and be eligible to service tax," Justice Ahmed said, disposing of the petitions.
The Finance Act of 2007 had introduced Section 65(105)(zzzz) levying service tax on renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course of furtherance of business or commerce. The levy, which was made effective from June 1, 2007, also includes part of building and land, common or shared areas and facilities; common areas and facilities of a building located in a complex or industrial estate.
The court concluded that since lease or levy or license or any other similar arrangement in relation to immovable property does not amount to rendering of a "service", no tax can be levied under the taxable entry of the said Section 65(105)(zzzz).
"The interpretation placed by the impugned notification and circular on the said provision is not correct."
"Consequently, the same is ultra vires the said Act and to the extent that they authorised the levy of service tax on renting of immovable property per se, they are set aside," the court said, striking down the notification.
Following the landmark ruling, landlords who have not collected but paid service tax can apply for refund of service tax paid by them in the last one year, subject to such applicant being able to show that he has not collected the tax from the lessee/ licensee. Where the tax has been collected from the lessee/ licensee, such lessee/ licensee can also apply for refund of the service tax paid in the last one year, subject to the lessee/ licensee being able to show that he has not passed on the burden of the tax.
The government has 90 days to file an appeal against the order of the High Court.

FBT A.Y 2009 - 2010

T D S A .Y 2009 - 10

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