#Lower Deduction TDS Certificate

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TDS must be subtracted at the time of any payment in accordance with the terms of the Income Tax Act.

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Lower/NIL TDS deduction certificate for NRIs

NRIs can apply for a Lower/NIL TDS deduction certificate to reduce their tax liability on Indian income. Ushma and Associates assists NRIs in obtaining this certificate, ensuring compliance with tax laws while minimizing unnecessary tax deductions at source.

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How To Reduce TDS On Government Bonds In 2024?

In the Union Budget 2024 it was announced that TDS will be deducted at 10% from specific central and state government bonds, including floating rate bonds. It will be implemented from October 1, 2024. The CEO of InCred Money, Vijay Kuppa said "In the Union Budget 2024, the Government has proposed a 10% TDS on all central government securities, state government bonds, and state development loans (SDLs), effective from October 1, 2024.”

What Is Tax Deductable At Source And How Does It Work? TDS is a part of income tax. It has to be deducted by a person for certain payments made by them like rent, commission, professional fees, salary, etc. It is a way for the government to collect tax directly from people’s income.

Let’s understand how TDS works with an example.

Rahul pays Rs 1,00,000 per month as rent for an office to the property owner. By law, Rahul needs to deduct 10% as TDS. This means Rahul will deduct Rs 10,000 as tax and give the remaining Rs 90,000 to the owner. So, the owner receives Rs 90,000 after the tax is deducted. Later, the owner will add the full amount of Rs 1,00,000 to his income when filing taxes and can use the Rs 10,000 that Rahul already paid as a credit towards his final tax bill.

What Is The New Rule? The government introduced a new rule that imposes a 10% Tax Deducted at Source (TDS) on income from government bonds. With the new rule introduced by the government, any interest earned from government bonds will now have a 10% Tax Deducted at Source (TDS) applied.

Let’s understand with an example.

If Mr X earns Rs. 10,000 in the form of interest from government bonds, 10% of the amount, which is Rs. 1,000 will be deducted as tax before he receives the money. This means that instead of getting the entire Rs. 10,000, he will only receive Rs. 9,000.

However, TDS is not an additional tax but is a method for the government to collect tax early. When filing their tax return at the end of the year, they will report the full ₹10,000 as income. They can then use the ₹1,000 that was already deducted to reduce their total tax liability. If more TDS was deducted than necessary, they could be eligible for a refund.

When less TDS is deducted, taxpayers receive more money. This money can then be reinvested to gain more. It also saves them the hassle of waiting for a refund when filing their tax returns.

How To Pay Lower TDS Or Zero TDS? Taxpayers can still avoid paying TDS or reduce the 10%. The government has allowed investors to submit a specific certificate that will help them lower the TDS rate or even avoid it completely.

Get Form 15H or Form 16G.

Declare that the total income is below the taxable limit, so no TDS should be deducted.

Fill out the form with the necessary details.

Submit the form to the organisation or bank from which the government bonds are being purchased.

Form 15H is for individuals who are 60 years old or above, while Form 15G is for others. To be eligible, your total annual income should be below the taxable limit set by the government.

This has to be done during the beginning of the financial year to avoid paying TDS deductions.

[religare-broking-limited]

Income Tax Implications on Demat Account

A Demat account, short for "Dematerialised account," is a vital financial tool for electronically holding and trading securities like stocks, bonds, and mutual fund units. It replaces traditional physical share certificates with electronic records, making trading more convenient, secure, and efficient. However, understanding the income tax implications on a Demat account in India can be complex due to various factors such as the type of securities held, the duration of holding, and an individual's overall tax profile.

Here's a simplified explanation of the tax implications associated with a Demat account:

Capital Gains Tax: This tax is levied on the profit earned from the sale of securities. There are two types of capital gains - short-term and long-term. Short-term capital gains (STCG) apply to securities held for less than a year and are taxed at 15%. Long-term capital gains (LTCG) apply to securities held for more than a year and are taxed at 10% for gains exceeding ₹1 lakh.

Dividend Income: Dividends received from stocks are taxable in the hands of the investor. For dividends above ₹5,000 in a financial year, a TDS (Tax Deducted at Source) of 10% is applicable.

Interest Income: If you hold bonds or other debt instruments in your Demat account, the interest earned is added to your total income and taxed as per your income tax slab.

To save on taxes, consider these strategies:

Invest in Tax-Saving Instruments: Equity-Linked Savings Scheme (ELSS) funds offer tax benefits under Section 80C of the Income Tax Act.

Long-Term Holdings: Holding securities for more than a year can reduce your tax liability due to the lower LTCG rate.

Expert Guidance: Consulting a tax advisor can help optimize your investment strategy and minimize tax outgo.

By understanding these tax implications and employing strategic investments, you can effectively manage and save on taxes associated with your Demat account.

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Unlocking Financial Flexibility: The Power of Lower Deduction Certificates

Tax Deducted at Source (TDS) can sometimes feel like a heavy burden, especially for individuals and businesses with substantial income streams. However, there's a little-known secret that can help alleviate this burden and improve cash flow: the Lower Deduction Certificate. In this blog, we'll delve into the concept of Lower Deduction Certificates, exploring how they work and the benefits they offer to taxpayers.

What is a Lower Deduction Certificate?

A Lower Deduction Certificate, also known as a TDS certificate, is a document issued by the tax authorities upon request of the taxpayer. Its purpose is to reduce the rate of TDS on specific income payments, thereby easing the immediate tax burden on the recipient. Essentially, it allows taxpayers to pay less tax upfront, providing greater financial flexibility.

How Does it Work?

Obtaining a Lower Deduction Certificate involves a simple application process with the tax authorities. Taxpayers need to submit relevant documents and provide reasons justifying the need for a lower TDS rate. Once approved, the certificate specifies the reduced TDS rate applicable to future income payments, such as salaries, interest, or professional fees.

Benefits of Lower Deduction Certificates:

Improved Cash Flow: By reducing the TDS rate, Lower Deduction Certificates enhance cash flow for taxpayers. This means more money in hand upfront, which can be particularly beneficial for businesses managing their working capital or individuals seeking immediate financial relief.

Tax Planning Flexibility: Lower Deduction Certificates offer taxpayers greater control over their tax planning strategies. By adjusting the TDS rate to align with actual tax liabilities, taxpayers can optimize their financial planning and minimize the risk of overpaying taxes.

Compliance and Efficiency: Utilizing Lower Deduction Certificates ensures compliance with tax regulations while streamlining administrative processes. Rather than waiting for tax refunds or reconciling excess TDS deductions, taxpayers can proactively manage their tax obligations in line with their income.

Conclusion:

In conclusion, Lower Deduction Certificates serve as a powerful tool for taxpayers seeking to alleviate the burden of TDS and enhance financial flexibility. By reducing the upfront tax liability, these certificates empower individuals and businesses to manage their cash flow effectively while ensuring compliance with taxation regulations. Whether it's optimizing tax planning, improving liquidity, or simplifying administrative processes, Lower Deduction Certificates offer a range of benefits that can positively impact one's financial well-being. It's time to unlock the potential of Lower Deduction Certificates and take control of your taxes.

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All you need to know about Section 194F of the Income Tax Act

Introduction

The Income Tax Act of India governs the taxation of income earned by individuals, companies and other entities. Section 194F is one of the sections of the Act, which deals with tax deduction (TDS) on payments made for lottery, crossword puzzle, card game or other game-related profits. This article aims to provide a comprehensive understanding of Section 194F and its implications for taxpayers.

What is Section 194F of the Income Tax Act, 1961?

Section 194F was inserted in the Income Tax Act of 1961 to ensure taxation of profits from games of chance. It mandates deduction of TDS on any payment made for winnings from lotteries, crossword puzzles, card games and other games of chance. The rate of TDS under section 194F is 30% of the total winnings. If the profit is Rs. 10,000, the payer is bound to deduct TDS and remit it to the Income Tax Department.

This section applies to anyone paying for winnings from games of chance. This includes companies, individuals and any other entity that can make such payments. This section also applies to payments made to non-resident persons. TDS under section 194F is deducted at the time of payment or credit, whichever is earlier.

What is the Implications for taxpayers of Section 194F

The Introduction of Section 194F has important implications for taxpayers. Increased tax liability of individuals who receive income through winnings from games of chance. TDS deduction under this section may result in lower payment for the winner. It is important to note that tax deduction at source under section 194F is partial payment of total tax liability. The winner is still liable to pay the remaining tax amount while filing the income tax return. They should ensure that they deduct TDS at the correct rate and remit it to the Income Tax Department within the prescribed time frame. Failure to do so may result in penalties and interest.

What are the Exemption under section 194F?

Section 194F contains certain exemptions. TDS under this section is not applicable in the following cases:

When winnings are below Rs. 10,000, no TDS required to be deducted.

When the winnings are in the form of prizes, no TDS needs to be deducted.

When the winnings are from horse races, the TDS rate is 30% of the total winnings, but a threshold limit of Rs. 10,000 not applicable.

What is the procedural aspects of TDS deduction under section 194F?

Under Section 194F, the payer is required to deduct TDS on the total winnings paid or credited to the winner. TDS deduction is to be made at the rate of 30%, and a threshold limit of Rs. 10,000 is applicable. If the winnings are Rs. be more than 10,000, the payer needs to deduct TDS and remit it to the Income Tax Department within the specified time frame. The payer needs to obtain a Permanent Account Number (PAN) from the winner before making any payment for the winnings.

If the winner does not have PAN, the payer is liable to deduct TDS at the rate of 30% or the prevailing rate, whichever is higher. The payer must issue a TDS certificate to the winner within the specified time frame. The Tax Deduction at Source (TDS) certificate must contain details such as the name and address of the payer, the name and address of the winner, the amount paid, the rate of TDS and the amount of TDS deducted. TDS certificate must be issued in Form 16A.

What are the Consequences of non-compliance with section 194F?

Non-compliance with Section 194F may attract penalty and interest. If the payer fails to deduct TDS or deducts TDS at a lower rate, he may be liable to pay a penalty of 100% of the amount of TDS that should have been deducted. If the payer deducts TDS but fails to remit it to the Income Tax Department within the stipulated time frame, they may be liable to pay interest charges at the rate of 1.5% per month or part of the month. The winner may also be held liable for non-compliance of section 194F. If the winner fails to provide their PAN to the payer, they may be liable to pay a penalty of Rs. 10,000. If the winner fails to declare their winnings while filing their income tax return, they may be liable to pay penalty and interest charges.

Summary

Section 194F is an essential provision in the Income Tax Act of India. It ensures that winnings from games of chance are properly taxed. Deduction of tax at source under this section may result in a lower payment for the winner, and it is important for payers to understand their obligations. It is also important to note the exemption under this section, which provides relief for small winnings and winnings from certain events. Overall, Section 194F plays a crucial role in income taxation in India and should be understood by all taxpayers.

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Documents and steps required to open a zero-balance account

Online zero-balance account opening has a number of advantages that no one should miss. Account holders can securely deposit or withdraw money at any time, in addition to its convenience. Additionally, they can use the funds in the account as an emergency fund or earn interest on them. You should open zero balance bank account online to enjoy advantages such as cutting-edge banking services and exclusive brand/shopping offers. To know more about zero balance accounts, read on. 

Creating a zero-balance bank account using the Internet:

Go to the Internet 

Open your laptop or mobile device and launch the browser. After navigating to your bank’s website, you can begin the process by entering your details, like your mobile number or email. Usually, on most bank websites, the next step is to enter other details that are present in your ID proof. These details are name, location, age, etc. You do not need to physically go to the bank; you can finish the paperless account opening process from the convenience of your home.

Keep the necessary documents ready when opening zero balance account

Providing specific personal identity credentials is the key requirement to open zero balance bank account online. If you have an Aadhaar Card, you don't need to provide any other identification or proof of address. 

You may need to submit the following:

Id Verification Documents (Driver's Licence, PAN Card, etc.) and Address Proof, such as a driver's license or passport.

If you don't have a PAN card, you'll require Form 16, a certificate from your employer stating that TDS (Tax Deducted at Source) has been taken out of your pay. Lastly, your two most recent passport-sized photos are needed.

Complete video KYC verification

Banks now permit applicants to upload their KYC documents and self-verify online. You can start using your new savings account as soon as the application grants access to your smartphone's location, camera, and microphone. It can all be done with a bank representative over a video call.

Login via mobile app or website

You can start using and even transferring money from your zero-balance savings account as soon as you receive a customer ID and account number.

Here is some other information about a zero-balance account:

How can you quickly open a bank account online?    

Due to the digital development in the banking sector, you can now open an online savings account quickly using a smartphone. You only need to enter your personal, Aadhaar, and PAN information on your bank's website. Your zero balance account will be active within a few minutes of completing the process online. Understanding the documents needed to start an online savings or zero-balance account is crucial.

A PAN card is typically used as proof of identity, and an Aadhar card is used as proof of residence.

Accessing a zero-balance bank account to check your balance or make a withdrawal. 

You can access your zero-balance savings account through a smartphone app, bank website, ATM, and at the bank branch if necessary.

Final thoughts

Basic savings bank deposit accounts were created to increase currency circulation and end cash hoarding. This is particularly true in some rural and semi-urban towns and cities in some countries. The internet banking features offered with online zero-balance savings accounts, such as insurance, will therefore give the lower and middle-income groups a feeling of security.

[propertythn]

Investing in Under Construction Projects in Thane: A Guide for NRIs

Investing in under construction projects in Thane, India, can be a lucrative opportunity for NRIs (Non-Residential Indians) looking for both a property investment and a connection to their motherland. This comprehensive guide aims to provide NRIs with a detailed overview of the benefits, considerations, and steps involved in purchasing under construction projects in Thane. From property types and taxation to power of attorney, finance and funding, and registration documents, this guide covers essential information to help NRIs make informed investment decisions.

Benefits of Investing in Under Construction Projects in Thane

Investing in under construction projects in Thane offers several advantages for NRIs:

1. Regular Rental Income:

Real estate valuers employ two primary methods to determine the market value of a property: the sales comparison method and the cost approach.

2. Favorable Investment Policies:

The Indian government considers NRI investments equivalent to those made by residents, offering a level playing field for NRIs.

3. Limited NRI-Focused Projects:

As only a few developers cater specifically to NRIs, investing in under construction projects in Thane can provide unique investment opportunities.

4. Growing Demand for Office Spaces:

The increasing demand for office spaces by multinational corporations and startups in Thane presents a high-return investment opportunity.

5. Favorable Exchange Rates:

The falling value of the Indian rupee and recent policy reforms have made it an opportune time for foreign investors to gain high returns on their investments.

6.Emotional Attachment:

Many NRIs, driven by nostalgia and the desire to return to their home country or support their relatives, choose to invest in India.

Detailed Guide for NRIs Investing in Under Construction Projects in Thane

1. Property Type :

NRIs can purchase residential and commercial properties in India but are restricted from buying agricultural land, farmhouses, or plantation estates without authorization from the Reserve Bank of India. It is essential to have a legal power of attorney if an NRI cannot visit India to make the purchase personally.

2. Taxation and Benefits:

When an NRI acquires a property in India, taxes are deducted at source (TDS) at specific rates on both long-term and short-term capital gains. NRIs can claim a refund on TDS if they fall into a lower tax bracket by filing their income tax returns. NRIs are entitled to several tax breaks similar to those available to Indian residents. Selling a property within three years is considered short-term capital gains and is taxable. However, selling after three years allows NRIs to utilize the proceeds to reduce long-term capital gains tax by investing in another under construction property in Thane.

3. Power of Attorney (PoA) :

NRIs are required to grant a power of attorney to the builder or an associate to handle the property acquisition process. Seeking legal assistance can help prevent fraudulent activities and safeguard the NRI's investment during the development phase. NRIs living abroad can grant power of attorney to trusted friends or family members to complete the property acquisition process in India.

4. Finance and Funding :

NRIs must use Indian currency and local banks to finance their property purchases in India. They need to have an NRI account with an authorized Indian bank. Financial institutions offer NRI home loan plans, requiring NRIs to invest a minimum of 20% of the property's value and allowing them to borrow up to 80%. It is crucial to have all documentation reviewed by a legal professional before approaching a bank for funds. A certificate from the seller confirming the absence of liens and clearing of joint ownership or inheritance issues is necessary. NRIs should ensure that no outstanding debts or dues are owed to any authorities.

5. Registration Documents :

To register the sale deed, NRIs need to provide identification proof documents such as their passport and PAN card, along with current address proof documents like utility bills. Additionally, NRIs, PIOs (Person of Indian Origin), or OCIs (Overseas Citizen of India) require specific documents such as a copy of their passport, visa, passport-size photographs, PAN card, and address proof. Salaried individuals need to submit additional documents like appointment letters and bank statements for the preceding six months, while self-employed individuals require income proof, business incorporation documents, partnership deeds (if applicable), and bank statements.

Conclusion

Investing in under construction projects in Thane offers NRIs an excellent opportunity to connect with their homeland while also enjoying potential high returns on their investments. By considering property types, taxation and benefits, power of attorney, finance and funding, and registration documents, NRIs can navigate the process smoothly and make informed decisions. It is crucial to engage trusted legal professionals, deal only with RERA-registered projects and real estate brokers, and conduct thorough research before making any investment decisions. By following this comprehensive guide, NRIs can maximize their investment potential and fulfill their aspirations of owning property in Thane, India.

Get To Know About: Real Estate Appraisal: Understanding Its Significance

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Best ESIC and EPF Registration in Bangalore:

 

     Epf in Bangalore, is a programme established to ensure that employees have a bright and prosperous future.Under the EPF Scheme, a small amount of your employee’s wages is deducted & contributed to the EPF account. Being an employer, you have to match the same amount put in the employee & deposit in the whole amount in the EPF account. Further, it is linked to the ESIC Scheme.

     ESIC in Bangalore - A workers' compensation plan called the ESIC Plan offers medical insurance to the insured. Also, their dependents are safeguarded. In the case of incapacity or wage loss, ESIC offers a variety of financial compensations. In the event of an accident or death brought on by workplace hazards while an insured person is at work, the Plan pays a pension known as a dependent benefit to the insured person's family members. ESI is one of the most important payroll compliance requirements, along with EPF, professional tax, and TDS.

Eligibility Criteria For ESI and EPF Registration in Bangalore

Eligibility Standards for ESI Registration in Bangalore:

      ESIC registration in Bangalore - The Shops & Establishments Act and the Factories Act list all organisations,If a factory or other enterprise has 10 or more employees, it must register with the ESI Schemes; Employees who make no more than Rs. 21,000 per month will be covered to review the ESI Registration requirements.

Eligibility Standards for EPF Registration in Bangalore:

    EPF registration in Bangalore can attain to any business or manufacturing with at least 20 workers 

    When hired, a company employee who has already signed up for the EPF Plan is automatically qualified to have their PF account opened;

    A business or organisation with fewer than 20 employees may register voluntarily;

    Any employee whose pay is less than Rs. 15,000 per month is required to withhold and deposit EPF

Benefits of PF and ESIC registration in Bangalore 

Legal Conformity:

Companies with 20 or more employees are required by the Workers Provident Fund and Other Provisions Act of 1952 and the Employees State Insurance Act of 1948 to register for the EPF and ESI programmes. There may be fines, jail time, and other legal repercussions if these restrictions are broken.

Employment Perks:

ESIC and PF registration in Bangalore - Companies can offer their employees a variety of social security benefits, like as pensions, health insurance, and maternity benefits, by enrolling in the EPF and ESI schemes. This can raise employee morale and satisfaction levels while also helping to recruit and retain great workers.

Tax Benefits: 

According to the Income Tax Act of 1961, businesses that have registered for EPF and ESI are entitled for tax incentives. This can assist businesses in lowering their overall tax obligations and strengthening their financial situation.

Maintain records:

Companies are expected to keep thorough records of the contributions made by their employees by registering for EPF and ESI. These records must include the amounts contributed, the frequency of contributions, and the method used to make contributions. By doing this, it is made possible for the employees' contributions to be precisely tallied and for them to have access to their benefits whenever they are required.

Registration process of ESI and PF in Bangalore

The application form in its entirety

     You must first complete the short questionnaire that our knowledgeable team has provided.

Processing of Documents

In order to arrange the papers as needed and for processing, we will need them at the second step in accordance with the questionnaire you filled out.

Application Submission:

     With the necessary paperwork and additional statements, we will submit your ESI/EPFO application through the Shram Suvidha Portal.

Announcement of filing

     Following processing, we'll get in touch with you to discuss filing your returns.

ESI and PF Registration Documents in Bangalore 

 Certificate of Incorporation / Certificate of Business Registration

Shop and Establishment Certificate, GST, and MSME Certificate ( any one)

Copy of  PAN Card Detail

Address of the business with address documentation

ID, Passport, and address documentation for the company's owner, directors, and partners

Sample Signature in the format shown in the attachment

Consent Letter in the format of the attachment (In case EPF Voluntary Registration)

Employee Information (Name, Gender, Status as Permanent or Temporary, and Last Month's Pay Breakup)

Email and mobile phone numbers for the company's owner, directors, and partners ( Email ID and Mobile should be unique for all)

How to get ESIC and PF consultant in Bangalore ?

    We offer one-stop solutions for things like monthly return filling out and esi/pf registration. Bizivalue is a reputable business with extensive experience in the field of  PF and  ESI Registration.PF and ESIC Consultant Bangalore are among one of the most effective & well-known companies for offering the top legal advisory services .We'll make sure you always receive the best advice thanks to our years of experience. We serve clients at every level of their business where we may be most helpful, whether as a management coach for front-line staff or a trusted advisor to senior executives.

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NRI SELLING PROPERTY IN INDIA CAN SAVE TDS

If you plan to buy a property from a non-resident Indian (NRI), you must know that the process is complicated. More stringent rules are imposed. As a buyer, you have been while making such deals. Tax has to be deducted before making the payment to the seller which is commonly referred to as TDS (tax deducted at source). 

Tax should be deducted only on sale price and not on tax gains, hence the buyer is liable to deduct TDS on entire sale proceeds. Hence the buyer is liable to deduct TDS on sale proceeds. Hence advisable to NRI seller, get lower rates TDS certificate in advance. 

Capital gains tax provisions for an NRI are similar to those for a resident individual except for the applicability of TDS provision. Like resident investors, capital gains tax for an NRI depends on the holding period and the type of property sold. 

If an NRI is selling property in India, the buyer is required to deduct TDS at the rate of 20% in case of long-term capital gains. However, if the property is sold before two years, TDS shall be deducted at the rate of 30% as a short-term capital gains tax. 

Written By 

Property Channel Expert 

Anurodh Jalan 

Jalan Property Consultant 

8801003684

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Get your certificate and know complete process visit here: Lower Deduction TDS Certificate

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Flipkart Lower Deduction Certificate (LDC)|Online sellers|TDS Compliance...

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Lower/NIL TDS deduction certificate for NRIs

Ushma & Associates specializes in obtaining Lower/NIL TDS deduction certificates for NRIs. We manage the entire application process, ensuring compliance with Indian tax regulations, and help minimize your tax liabilities, making your financial transactions more efficient and cost-effective.

SITE : https://ushmaassociates.com/

[ushma1]

TDS on immovable property is a tax that is deducted from the source of income. This tax is deducted by the buyer of the property at the time of purchase from the seller's income. This is applicable As per the Income Tax Act, 1961 for the TDS on Immovable Property & Lower Deduction Certificate.

[salujagoyal]

We are a team of tax experts having deep insight into every clause of TDS and hence brief the rules and regulations of the tax department for property buyers. It is a mandatory process for a property buyer to deduct tax from the sale price and make a payment to the seller for the remaining money. This amount of tax deducted on the property sale depends on the type of seller; a resident or an NRI.