1074 (Income Tax) What is the difference between property TDS , salary TDS and Non salary TDS? Video Link - https://youtube/watch?v=cxiqhCz8Wl0 Narration - By Amlan Dutta Case Methodology - Harvard Case Model. Of late many taxpayers had asked me the difference between the type of tax credits that are available to them . Firstly let us understand what tax credit means . It means the credit of taxes available to the taxpayer using which he /she can meet out the tax liability . The tax credit may be in the form of TDS or taxes that he pays in terms of self assessment or advance tax or tax refunds available to him - all for the assessment year under consideration . This tutorial we narrow our discussion to just the tax credit available to the taxpayer in terms of TDS available to his account . This was earlier majorly classified in salary and non salary TDS but now due to introduction of a new TDS section 194 IA also extends to property sale TDS Say i am a salaried employee having salary of 10 lacs and also having bank FD with interest income 1.5 lacs and recently sold my Mumbai flat for 85 lacs Then , the employer while paying salary will deduct TDS as per income slabs under section 192 ( for assessment year 2014 15 , it will work out to be 1.3 lacs )....bank while paying interest income will deduct TDS at the rate of 10 % under section 194 A i.e 15000 on 1.5 lacs (because it is expense of type interest other than securities and say i sold my property to Krishna ( buyer ), he will while paying me sale proceeds deduct 1 % TDS under section 194 IA ( since consideration value exceeds 50 lacs )...so he will deduct 85000 Rs and pay me the balance 84.15 lacs , At the end of the year , i fihure out my tax liability ...say it is 4 lakh rs Lets assume for a moment that my salary TDS , bank TDS and property TDS was 1.3 lakhs , 15000 and 85000 Rs respectively, then i have tax credit available of 2.25 lacs ...for the rest , during the year i should have paid advance tax or if i failed to pay advance tax ,m i will now pay self assessment tax (which will also include penal interest for non payment of advance tax ) Hope this helps, Cheers , Amlan Dutta
Posted on: Sat, 13 Dec 2014 11:45:15 +0000
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