Quick Answer: Is There Any TDS On Purchase Of Fixed Assets?

When TDS is not required to be deducted?

For senior citizens, TDS on interest received on FD will be applicable if it crosses Rs 50,000 in a single financial year.

If a person expects that his total income in a financial year will be below the exemption limit, he can ask the payer not to deduct TDS by submitting Form 15G/15H..

Can we deduct TDS at higher rate?

02 January 2008 you should issue TDS certificate for the actual tax deducted, this will enable the deductee to get claim the full amount of TDS credit. 02 January 2008 Hi Ramesh, … If the vendor is aggreeable for the higher deduction, you may issue certificate for the higher rate.

Can TDS be paid without tan?

The buyer of any immovable property need not obtain a TAN (Tax Deduction Account Number) for making payment of the TDS on immovable property. You can make the payment using your PAN.

What happens if TDS is not deducted on purchase of property?

In case of where the TDS is not paid to the Govt. account by the due date then under section 201 of IT Act 1961 interest will be levied and the deduct or (buyer of the property) is to be deemed as an assessee in default for failure to pay or for late payment of any TDS including TDS on immovable property.

Is TDS deducted on raw material purchase?

No Need for TDS on Payment for Procurement of Raw Material from NRIs: ITAT. The Income Tax Appellate Tribunal (ITAT), Delhi, has ruled that for the payment for the procurement of raw material from an individual of a foreign country, the Indian assessee is not required to deduct a TDS (Tax Deducted at Source).

Is TDS applicable on purchase of fixed assets?

29 March 2011 No TDS shall be affected for asset related transactions and not Capital expense transactions. The erection and installation charges are the expense (revenue) incurred in connection with purchasing the asset and there by adding the value of the assest and we may be capitalise the same.

What is the rule of TDS deduction?

TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5% to 30% which is equivalent to the applicable income tax slabs.

What is TDS assessment?

Section 192 defines, “TDS deduction on salary”. TDS is deducted if the estimated income of the employee is taxable. … As per Income Tax, Surcharge and Education Cess rates is applicable on the estimated income of employee for the year.

Is TDS applicable on purchases?

TDS is to be deducted at the rate of 2 percent on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees.

Who is liable for TDS deduction?

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.

What if TDS is deducted at higher rate?

At the time of filing your income tax return, you would sum up all your income from various sources, find out the tax liability, and subtract the TDS applied to your income. If the TDS is higher than your total tax liability for the financial year, it means a refund is due from the government.

Are you filing return of income under seventh?

Finance Act, 2019 has inserted a new seventh proviso to section 139(1) to provide for mandatory filing of return of income for certain class of person who carries out certain high-value transactions even though the person is otherwise not required to file a return of income due to the fact that total income is below …

What is Section 40 A?

Under the Income tax Act, 1961 Profit or gain from Business or profession is considered income and such income is chargeable to tax. The expenses incurred in relation to business can be deducted from the revenue from Business or profession. … Section 40 & 40A of the Income Tax Act, 1961 specified it.

Is TDS applicable on capital expenditure?

It is very obvious TDS is applicable only on service and contracts, not on goods whether capital in nature or revenue in nature. TDS is applicable on other than goods part of capital expenditure.