How to calculate WDV Rates for Depreciation

Straight Line Method (SLM) and Written Down Value (WDV) methods are the most used methods for calculating depreciation. Although Companies Act doesn't require any specific method to be chosen, the income tax limits the choice for selecting options. SLM is allowed by the Companies Act, but the Income-tax Act requires calculation of depreciation by WDV Method only. However, certain...

TDS on Insurance Commission [Section 194D]

Section 194D deals with Tax Deduction on payment of insurance commission. This section casts responsibility on any person responsible for paying to a resident any income by way of remuneration or reward as a commission from the insurance business. Payment to non-residents is covered under section 195. This section covers TDS on payments of commission for insurance business obtained...

Know about TDS on Payments to Contractors and sub-contractors [Section 194C]

Provisions related to Tax Deduction at Source (TDS) that are applicable on payments to contractors and sub-contractors are in Section 194C of the Income Tax Act, 1961. This section applies only to payments made to resident contractors and sub-contractors. For payments to non-residents, section 195 shall be applicable. Who should deduct such TDS? This section requires all individuals, HUFs and other...

Procedure to check status of Tax refund (Income Tax)

One can check the status of Income Tax refund from TIN-NSDL website. You can click on the below link: Link to TIN-NSDL Refund Status Page On visiting the above link, option as shown in image below: On this page, you can provide your Permanent Account Number (PAN) and Assessment Year for which you want to check the status of income tax refund. Assessment...

TDS on Winnings from Lotteries, crossword puzzles and horse races [Sections 194B and 194BB]

Any income from winnings from lotteries, crossword puzzles, card games and other game of any short, races including horse races, etc., is chargeable to income-tax under section 115BB. This section imposes an income tax at a flat rate of 30%. Further, the provisions of TDS are applicable on it. Section 194B and 194BB deals with TDS on such income....

Know about TDS on Interest other than Interest on Securities [Section 194A]

Section 194A deals with TDS on interest other than the interest on securities. Provisions related to the TDS on interest on securities are in section 194. The current rate of TDS under this section is given by Part II of the First Schedule to the Annual Finance Act. At present, the rate is 10% for both in the case of...

TDS on Payment of Dividends [Section 194]

Dividends attract dividend distribution tax @ 15% in the hands of the company. There is no liability to pay tax on individuals receiving it from a domestic company. It is, therefore, there is no provision for TDS on payment of Dividend. Domestic Companies do not need to deduct TDS on making payments of dividends to their Shareholder. However, there...

Know about TDS for Interest on Securities [Section 193]

Interest on Securities is taxable in India. Further, Section 193 of the Income Tax Act, 1961 provides for Tax Deduction at Source. This section casts responsibility on the person paying such interest on securities to a resident. The current rate of deduction is 10% for both domestic companies and resident non-corporate assesses. Tax should be deducted at the time of...

Know about Deduction of TDS on Salary

TDS on Salary of Employees
Section 192 of the Income Tax Act, 1962 deals with the provisions related to TDS in the case of Salary. Highlights of this section are listed below: This section casts an obligation on every person responsible for paying any income chargeable to tax under the head 'Salaries' to deduct income-tax on the amount payable. Such TDS has to be...

Benefits and Limitations of Accounting Standards

Accounting Standards describe the accounting principles. They provide for the valuation techniques and the methods of applying the accounting principles. Accounting Standards help in establishing comparability and reliability features for financial statements. This helps financial statements to represent the true and fair view. Benefits of Accounting Standards It reduces confusing variations in the accounting treatments used to prepare financial statements, to...