990 (Income tax) What is the difference between Salary TDS and Non salary TDS (Concept) Narration - By Amlan Dutta Video Link - https://youtube/watch?v=9UeDHeKuOkE Method used - Harvard Case based approach! So , let the previous year be 2013 14 and Amlan (taxpayer) is a handsome young 30 yr young man having salary and FD interest income in this previous year When amlan goes about filing the tax return , he sees that the return clearly outlines in the tax details tab the tax credit in terms of TDS separately for salary TDS and non salary TDS For Amlan , then it would mean outlining salary TDS and FD interest TDS ( tax which was deducted at salary source by the employer and which was deducted at FD interest source by the bank ---- here this heroes are called the deductors ! So how much will the employer deductor deduct and how much will the bank deduct ? Can they deduct as they wish or why should they even deduct . They have to deduct TDS because for them this are expenses and when they make their income statement , they can claim such expenses only when they deduct TDS as per provisions of the act and deposit it to the revenue ! Also they look at TDS sections laid down for guidance so as to deduct TDS properly Here we assumed a simple case fo 10 lakh for each income - salary and FD interest For salary , TDS section is 192 and the amount to be deducted as per TDS IS as per income slabs ...so as per slabs the tax on 10 lacs salary will be 133900 so the TDS deduicted by the employer will be 133900 .....they issue annual TDS certificate ,,,they file their own TDS returns 24 Q every quarter for all accountholder deducted TDS mapping TDS deducted properly agaisnt PAN .when done properly and apped against my PAN , same will reflect in my tax credit statement ! Other than salary , no other expense has TDS deduction as per slabs but has it rather at fixed percentages So in case of the 10 lacs FD interest income , the bank looks at section 194 A for guidance where the treatment is laid down at 10 % So for same 10 lacs FD interest income , the bank deducts under section 194 A 10 % i.e 1 lac ...they issue quarterLy TDS certificate 16 A ,,,they file their own TDS returns 26 Q every quarter for all accountholder deducted TDS mapping TDS deducted properly agaisnt PAN Details of TDS deducted by both deductors and others will refelct in my tax credit statement if the deductors ( bank and employer ) have uploaded their TDS returns ( 24 Q for salary / 26 Q for non salary properly ) Once it does reflect in my tax credit statement (26 AS) , then i can take use of this credit available to meet my tax liability ! This and much more in the tutorial !
Posted on: Fri, 03 Oct 2014 04:30:47 +0000
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