S K and Associates

TDS on Commission & Brokerage

Section 194H of the Income
Tax Act: TDS on Commission & Brokerage

Section
194H of the Income Tax Act mandates TDS deduction on payments made as
commission or brokerage. Under this section, the person responsible for paying
commission, other than an individual or Hindu Undivided Family (HUF), must
deduct tax at 5% when the amount exceeds ₹15,000 in a financial year.
As per the Union Budget 2024, the TDS rate under Section 194H will be reduced
from 5% to 2% effective from October 1, 2024.

TDS on Commission & Brokerage

Section 194H of the Income Tax Act: TDS on Commission & Brokerage Section 194H of the Income Tax Act mandates TDS deduction on...

Revised TDS rates from October 1: Here are the new tax deducted at source rates on various transactions

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgZsAt_tFARnI_P6IPMtv4FqUzsWSSKJvK3JFIIvLEnMu42RlstGVibxkJPapPzREtlhgHVtW7vUWuZlzceb0BWx_NOsdsznZ6ulHtl8H9lGsisdQe1xQGS_YWHwXXKdic0QQe7mmi9MRghMqi7WBQUCirETwFesSoeXMIwEXKNGRgBtcexPEBkO36xflHw" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="720" data-original-width="1280" height="180" src="https://blogger.googleusercontent.com/img/a/AVvXsEgZsAt_tFARnI_P6IPMtv4FqUzsWSSKJvK3JFIIvLEnMu42RlstGVibxkJPapPzREtlhgHVtW7vUWuZlzceb0BWx_NOsdsznZ6ulHtl8H9lGsisdQe1xQGS_YWHwXXKdic0QQe7mmi9MRghMqi7WBQUCirETwFesSoeXMIwEXKNGRgBtcexPEBkO36xflHw" width="320" /></a></div>  The Union Budget 2024 included several significant proposals,
which have been ratified in the Finance Bill. Some of these changes have come
into effect from October 1. These changes included revised TDS rates applicable
from October 1, 2024. 
 
 
<o:p></o:p>

· 
Section 194G – Commission etc on sale of lottery tickets is reduced from
5% to 2%. This will be effective from October 1, 2024. .. 
 
<o:p></o:p>

· 
Section 194-O - Payment of certain sums by e-commerce operators to
e-commerce participants is reduced from 1% to 0.1%. This will be effective from
October 1, 2024.< .. 
 
<o:p></o:p>

Section 194F relating to payments on account of repurchase of
units by Mutual Fund or Unit Trust of India is proposed to be omitted. This
will be effective from October 1, 2024. 
 
<o:p></o:p>

Floating
rate of bonds TDS 
 <div style="text-align: justify;">In Budget 2024, it was announced that starting
from October 1, 2024, tax deducted at source (TDS) will be deducted at a 10%
rate from specified central and state government bonds, including floating rate
bonds.</div><div style="text-align: justify;"> </div>

<div style="text-align: justify;">There is a Rs 10,000 threshold limit, after
which the tax is deducted. This means that there is no TDS if the revenue
earned throughout the year is less than Rs 10,000.</div><div style="text-align: justify;"> </div>

<o:p></o:p>

Revised TDS rates from October 1: Here are the new tax deducted at source rates on various transactions

The Union Budget 2024 included several significant proposals, which have been ratified in the Finance Bill. Some of these changes have com...

Advisory for Form GST DRC-03A

<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjZBMDFWKHlqqY8iMCrpsHMyfe1idDtcw7403Aag4yNVjxGGghPRT8VaYEmpUZ_CsLDPc0n9kgOXikEt7dkH9bJbQzNFQa2H8DJZkAmnIWznRlI7sW6eE3BrJcx2Nigy0Vmm5epAfVW6SlRmFhLgvhX_c3XbrFkoj03wx5GKV48EQm8iwaiFo2vI0Lrw5ji" style="margin-left: 1em; margin-right: 1em;"><img alt="" data-original-height="720" data-original-width="1280" height="180" src="https://blogger.googleusercontent.com/img/a/AVvXsEjZBMDFWKHlqqY8iMCrpsHMyfe1idDtcw7403Aag4yNVjxGGghPRT8VaYEmpUZ_CsLDPc0n9kgOXikEt7dkH9bJbQzNFQa2H8DJZkAmnIWznRlI7sW6eE3BrJcx2Nigy0Vmm5epAfVW6SlRmFhLgvhX_c3XbrFkoj03wx5GKV48EQm8iwaiFo2vI0Lrw5ji" width="320" /></a></div>  1. It has been observed that some taxpayers have paid the demanded amount vide DRC 07/DRC 08/MOV 09/MOV 11/APL 04 through DRC-03 instead of using payment facility ‘Payment towards demand’ available on GST portal. This led to a situation where demand has been paid by the taxpayer, however the demand is not closed in the electronic liability register. To address this issue, the government has notified a new form named GST DRC-03A which was notified vide Notification No. 12/2024 dated. 10th July 2024.<p style="background-color: white; box-sizing: border-box; color: #212121; font-family: verdana, "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; margin: 0px 0px 10px; text-align: justify;">2. Accordingly, GSTN has developed the new Form GST DRC-03A on GST portal which is available now to adjust the paid amount through DRC-03 against the corresponding demand order. Therefore, it is advised to the taxpayers to use the DRC-03A form to link the payment made vide DRC-03 with the demand order. Only DRC-03 forms where the cause of payment is either ‘Voluntary’ or ‘Others’ can be used in the Form GST DRC-03A.<p style="background-color: white; box-sizing: border-box; color: #212121; font-family: verdana, "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; margin: 0px 0px 10px; text-align: justify;">3. Taxpayers will be required to enter the ARN of the DRC-03 along with the relevant demand order number on the portal. Upon entering the ARN and selecting the demand order number of any outstanding demand, the system will auto-populate relevant information of the DRC-03 form as well as from the specified demand order against which the payment is to be adjusted.<p style="background-color: white; box-sizing: border-box; color: #212121; font-family: verdana, "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; margin: 0px 0px 10px; text-align: justify;">4. Once the adjustment is made, corresponding entries will automatically be posted in the taxpayer’s liability ledger to reflect the updated status of demands.

Advisory for Form GST DRC-03A

1. It has been observed that some taxpayers have paid the demanded amount vide DRC 07/DRC 08/MOV 09/MOV 11/APL 04 through DRC-03 instead o...

GST cut on health insurance, life insurance

<img alt="GST ON HEALTH INSURANCE - Akka IAS Academy" class="sFlh5c FyHeAf" data-ilt="1729770137291" src="https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcT0Jb7Y8Ko-qzQ97HY7P1q3HZXlDU7KaBCVhA&s" style="max-width: 1200px;" />

<h2>GST rate reduction: How is it going to
impact your insurance?</h2>

The simple answer which policyholder wants to know is how
much are they likely to benefit if these proposals go through. Rakesh Jain,
CEO, of Reliance General Insurance explains: 
 
Let's assume you pay a premium of Rs 10,000 for your health insurance. At
present, you have to pay an 18% GST on your health insurance premium. So you
pay a GST of Rs 1,800 on each health insurance premium. So, the total health
insurance premium comes to Rs 11,800 (Rs 10,000 + Rs 1,800). Now, if GST is
removed from health insurance premiums, you don't have to pay the additional
GST amount with each premium. 
 
If the GST is reduced from 18% to 12%, you must pay a GST of Rs 1,200 on a
health insurance premium of Rs 10,000. Your total <a data-ga-onclick="Inarticle articleshow link click#Wealth#href" data-type="tilCustomLink" href="https://economictimes.indiatimes.com/wealth/insure/health-life-insurance-policyholders-rights-master-circular-issued-by-irdai-know-claim-settlement-time-limit-other-rules/articleshow/113096570.cms" target="_blank">health insurance premium</a>
will be Rs 10,000 + Rs 1,200 = Rs 11,200. So you will save Rs  600 (11,800 - Rs 11,200) on every premium. 
 
If the GST is reduced from 18% to 5%, you must pay a GST of Rs 500 on a health
insurance premium of Rs 10,000. Your total health insurance premium will be Rs
10,000 + Rs 500 = Rs 10,500. So you will be able to save Rs 1,300 (Rs 11,800 -
Rs 10,500) on every health insurance premium. 
 
If the GST is reduced to 0, you will save Rs 1,800 on every health insurance
premium.

GST cut on health insurance, life insurance

GST rate reduction: How is it going to impact your insurance? The simple answer which policyholder wants to know is how much are they ...

What can be the reasons for refund failure?

<h2>What can be the reasons for refund failure?<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjsUchyrGqd_UElPGt2IEfrS0M1I2rBjqFEkuP4So-Q0lS3DqNxCBl9j1yR-rQvDkae6MCCKs7skUhjuobfwo3QR6wzUjGxbkHb_bmVOimFo_khy808WiNb7dOjdwyWmz7SD7UHP6jjSgiWxtJz5xzTkmJPKjfMSdaLdS_9sUsKX6ogFYUcKAesJUr1KavQ/s240/images.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="180" data-original-width="240" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjsUchyrGqd_UElPGt2IEfrS0M1I2rBjqFEkuP4So-Q0lS3DqNxCBl9j1yR-rQvDkae6MCCKs7skUhjuobfwo3QR6wzUjGxbkHb_bmVOimFo_khy808WiNb7dOjdwyWmz7SD7UHP6jjSgiWxtJz5xzTkmJPKjfMSdaLdS_9sUsKX6ogFYUcKAesJUr1KavQ/s1600/images.jpg" width="240" /></a></div> </h2>Failure of credit of refund can be due to one or more reasons as listed below: <ul><li>If your PAN is inoperative, your refund will get failed and you will see a warning message to link your PAN with the Aadhaar.</li><li>Incorrect Bank Details (Account no, MICR Code, IFSC Code, Name mismatch etc.)</li><li>Account holder KYC is pending</li><li>Account details given are other than Current Account or Saving Bank Account</li><li>Account Description is incorrect</li><li>If the account that you have mentioned in the ITR has been closed.</li><li>In case the bank account is not pre-validated. It is now compulsory to pre-validate your bank account.</li></ul>

What can be the reasons for refund failure?

What can be the reasons for refund failure? Failure of credit of refund can be due to one or more reasons as listed below: If your PAN is ...

OLD AND NEW TAX REGIME DETAILS IN FAQs.

<img alt="Difference Between Old Vs New Tax Regime: Which is Better?" class="sFlh5c FyHeAf" data-ilt="1725106025127" src="https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcT-dXFSImjOSjgzzE6UOTYLY2MYpLsnuyifZQ&s" style="max-width: 1280px; position: absolute; visibility: hidden;" /> <img alt="Difference Between Old Vs New Tax Regime: Which is Better?" class="sFlh5c FyHeAf" data-ilt="1725106025127" src="https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcT-dXFSImjOSjgzzE6UOTYLY2MYpLsnuyifZQ&s" style="max-width: 1280px; position: absolute; visibility: hidden;" /> <img alt="Difference Between Old Vs New Tax Regime: Which is Better?" class="sFlh5c FyHeAf" data-ilt="1725106025127" src="https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcT-dXFSImjOSjgzzE6UOTYLY2MYpLsnuyifZQ&s" style="max-width: 1280px; position: absolute; visibility: hidden;" /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5HZwxCAZJ4SCYgMp9CyeT_dW-mHEW3M2dHrU8kHt07jaay8wqS0I6mNy098OM160IOVA0b8B3PiiO7UWvcBTkE16q77JaMvgzwQNBqKMiSeYHjopt5RV_TDOexf3t34jgJoECbXfV09-9IaBAFPd4M9UgP5a-Q2Dp-5qP4tTXU8uykCPgisdrL117Zzbu/s1280/For-blog_3feb-01.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="720" data-original-width="1280" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5HZwxCAZJ4SCYgMp9CyeT_dW-mHEW3M2dHrU8kHt07jaay8wqS0I6mNy098OM160IOVA0b8B3PiiO7UWvcBTkE16q77JaMvgzwQNBqKMiSeYHjopt5RV_TDOexf3t34jgJoECbXfV09-9IaBAFPd4M9UgP5a-Q2Dp-5qP4tTXU8uykCPgisdrL117Zzbu/s320/For-blog_3feb-01.jpg" width="320" /></a></div>  1. Overview The Finance Act 2023 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessees being Individual, HUF, AOP (not being co- operative societies), BOI or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In case of "non-business cases", option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1). In case of taxpayers having “income from business and profession” and who want to opt out of new tax regime, the assessee would be required to furnish Form 10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA. New tax regime is the default tax regime. However, taxpayers can opt for the old regime. New vs. Old Tax Regime> FAQs 1) What is the difference between the old and new tax regime? Ans: The tax slabs and rates are different in old and new tax regimes. Various deductions and exemptions are allowed in Old tax regime. The new regime offers lower rates of taxes but permits limited deductions and exemptions. 2) Which is better between the old tax regime and the new tax regime? The option to choose between two regimes may vary from person to person. It is advisable to do a comparative evaluation and analysis under both regimes and then choose as per requirement. Taxpayers can broadly estimate and compare tax liability under the new and the old tax regime using Income and Tax Calculator on the Income Tax Portal. FAQs on New vs. Old Tax Regime (AY 2024-25) 2 3) Is it necessary for the employee to intimate the tax regime to the employer? Yes, the employee has to intimate the employer regarding his intended tax regime during the year. If the employee does not make an intimation, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. Thus, the employer shall deduct tax in accordance with the rates provided under section 115BAC. However, the intimation made to the employer would not amount to exercising the option in sub- section (6) of section 115BAC for opting out of the new tax regime. The employee shall be required to do so separately before the due date specified under section 139(1) for filing of return of income. 4) I am a salaried taxpayer. Can I claim HRA exemption in the new regime? Under the old tax regime, House Rent Allowance (HRA) is exempted under section 10(13A) for salaried individuals. However, this exemption is not available in the new tax regime. 5) Am I eligible for Rs. 50,000 standard deduction in the new tax regime? Yes, Standard deduction of Rs.50,000 or the amount of salary, whichever is lower, is available for both old and new tax regimes from AY 2024-25 onwards. 6) In the new tax regime can I claim deductions under chapter-VIA like section 80C, 80D, 80DD, 80G etc. while filing the ITR for AY 2024-25? In new tax regime, Chapter-VIA deductions cannot be claimed, except deduction u/s 80CCD(2)/80CCH/80JJAA as per the provision of Section 115BAC of the Income Tax Act, 1961. In case, taxpayer wants to claim any deductions (as applicable), then taxpayer needs to choose the old tax regime by selecting “Yes” option in ITR 1 / ITR 2 (or) “Yes, within due date” option in ITR 3 / ITR 4 / ITR 5 in the field provided for “opting out option” under Schedule ‘Personal Information’ or ‘Part- A General’ in the respective ITR. in ITR 1 / ITR 2 3 Or in ITR 3 and ITR 4 7) Can I claim deduction of Interest on borrowed capital of Rs. 2,00,000/- for self occupied property under Income from House Property in the new tax regime? In the new tax regime, “Interest on borrowed capital for Self-occupied property” is not allowed as a deduction from Income from House property as per the provision of Section 115BAC of the Act, 1961. In case, the Taxpayer wants to claim deduction of interest on borrowed capital for SOP, then taxpayer must choose ‘Old Tax Regime’ by selecting “Yes” in ITR 1 / ITR 2 or “Yes, within due date” option in ITR 3 / ITR 4 / ITR 5 in the field provided for “opting out option” in the ITR Form. 8) I am a senior citizen. In the old tax regime there are special advantages in tax rates for senior citizens. Are there any such advantages in new tax regime? 4 In the old tax regime , the basic exemption limit for senior citizens is Rs. 3,00,000/- and for super senior citizens, it is Rs. 5,00,000/-. In the new tax regime, no income tax is payable upto the total income of Rs. 7 lakh. 9) Is there any difference in tax rebate under section 87A in old and new tax regime? In the old tax regime in case of a resident individual, whose total income does not exceed Rs. 5,00,000/- there is rebate of 100 percent of income tax subject to a maximum of Rs. 12,500/. In the new tax regime, w.e.f 01-04-2024, in case of a resident Individual, the rebate will be applicable on total income chargeable to tax under subsection (1A) of section 115BAC as under: (a) where such total income does not exceed seven hundred thousand rupees, a deduction from the amount of income-tax (as computed before allowing for the deductions under Chapter VIII) on his total income with which he is chargeable for any assessment year, of an amount equal to one hundred per cent of such income-tax or an amount of twenty-five thousand rupees, whichever is less; (b) where such total income exceeds seven hundred thousand rupees and the income-tax payable on such total income exceeds the amount by which the total income is in excess of seven hundred thousand rupees, a deduction from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income, of an amount equal to the amount by which the income-tax payable on such total income is in excess of the amount by which the total income exceeds seven hundred thousand rupees. 10) While filing ITR for FY 2023-24 (AY 2024-25), I want to opt for the old tax regime instead of the default new tax regime, should I file Form 10-IEA before filing his income tax return (ITR)? Form 10-IEA is a declaration made by the return filers for choosing the ‘Opting Out of New Tax Regime’. An Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person with business or professional income must submit Form 10-IEA if they wish to pay income tax as per the old tax regime. On the other hand, taxpayers who do not have income from business or profession can simply tick the “Opting out of new regime” in the ITR form without the need to file Form 10-IEA. Simply put, only those who file ITR-3, ITR-4 or ITR-5 have to submit Form 10-IEA if they have business income (other than coop societies). Individuals and HUFs filing their returns in Forms ITR-1 or 2 are not required to submit Form 10-IEA. 11) I am filing ITR in new regime for AY 2024-25. Can I switch between old and new tax regime in the next years? 5 An Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person with business or professional income will not be eligible to choose between the two regimes every year. Once they opt out of new tax regime, they have only one chance for switching to new regime. Once they switch back to the new regime, they won’t be able to choose old regime anytime in future. An individual with non business income can switch between the new and old tax regimes every year. Within the same year, again it is emphasized that the choice of old tax regime can be made only before the due date of filing the return u/s 139(1) of I T Act. 12) I am having business income and have opted in and opted out from the new regime in the previous years. So, will I be in old regime for the AY 2024-25? Please note that new tax regime is default regime for AY 2024-25. Any actions in any previous years with respect to choice of regimes will not be applicable from AY 2024-25. You are required to submit Form 10-IEA again in case you want to opt for the old regime. 13) I have business income, I have wrongly filed Form 10-IEA but want to file the return under new tax regime. As there is no option to withdraw Form 10-IEA in that case whether my return can be filed under new tax regime? Once Form 10IEA is filed for AY 2024-25, then it cannot be revoked / withdrawn in same AY. If you wish to re-enter into new tax regime then you can file Form 10IEA for withdrawal option in the next assessment year. Again it is emphasised that that the choice of old tax regime can be made only before the due date of filing the return u/s 139(1) of I T Act. 14) I am filing ITR-5. I want to opt out of new tax regime? Whether Form 10-IFA or Form 10- IEA would be applicable to me? Form 10-IEA is applicable to AOP’s (other than Co-operative society) or BOI or AJP, who are filing return of Income in ITR-5 for AY 2024-25. Form 10-IFA is applicable to new manufacturing co-operative Societies resident in India filing ITR 5, if they wish to avail New Tax Regime under Section 115BAE for AY 2024-25

OLD AND NEW TAX REGIME DETAILS IN FAQs.

1. Overview The Finance Act 2023 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax...

S K and Associates

TDS on Commission & Brokerage

TDS on Commission & Brokerage

Revised TDS rates from October 1: Here are the new tax deducted at source rates on various transactions

Advisory for Form GST DRC-03A

GST cut on health insurance, life insurance

What can be the reasons for refund failure?

OLD AND NEW TAX REGIME DETAILS IN FAQs.

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