1

Gokhale Education Society’s

B.Y.K. College of Commerce

Prin.T.A.Kulkarni Vidyanagar,Nashik-422005
“NAAC” Re-accredited with Grade “A”

ISO 9001-2015 Certified College

Name of the student

(Nagle Saisha Shashank)

SYBBA (FINANCE) Roll No: 108

Subject Teacher

(Dr.Pooja Talreja)

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University Exam Seat No:

Gokhale Education Society’s

B.Y.K.College of Commerce

Prin.T.A.Kulkarni,Vidyanagar,Nashik-422005

“NAAC” Re-acrredited with Grade ‘ A’

ISO 9001-2015 Certified College

CERTIFICATE
This is to certify that Mr./Miss Nagle Saisha Shashank of SYBBA,Roll
no.108 has undertaken and completed a project under the subject Business
Taxation –DSE-405 B-FM as per the guidelines of Savitribai Phule Pune
University for the year 2023-2024.

Date: / /2024 Subject Teacher

(Dr. Pooja Talreja)

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BUSINESS TAXATION 405-B-FM

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INDEX
SR.NO. Topic Signature of teacher
1 Use of PAN and benefits
and application
-Introduction
-Topic
-Conclusion
2 Comprehensive data
regarding all the heads of
income
-Introduction
-Topic
-Conclusion
3 Prepare consolidated ITR
of all five heads of
income.
4 Various types of TDS
and its sub sections.

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1.PAN CARD
Introduction:-
A permanent account number (PAN)is a ten character alphanumeric identifier, issued in the
form of a laminated “PAN card”, by the Indian Income Tax Department to any person who
applies for it or to whom the department allots the number without any application.It can also
be obtained in the form of a PDF File.

A PAN is a unique identifier issued to all judicial entities identifiable under the Indian
Income Tax Act, 1961. The income tax PAN and its linked card are issued under Section
139Aof the Income Tax Act. It is issued by the Indian Income Tax Department under the
supervision of the Central Board for Direct Taxes (CBDT) and it also serves as an important
proof of identification.It is also issued to foreign subject to a valid visa ,and hence a PAN
card is not as acceptable as proof of Indian citizenship. A PAN is necessary for filing invome
tax returns.

The PAN(or PAN number) is a ten-character lon alpha-numeric unique identifier.

The PAN structure is as follows; Fourth character ;

Example:AAAPZ1234C

The first five characters are letters (in uppercase by default) followed by four numerals,and
the last ( tenth) character is a letter. The first three characters of the code are three letters
forming a sequence of alphabetic letters from AAA to ZZZ.

The fourth character identifies the type of holder of the card.Each holder type is uniquely
defined by a letter from the list below:

A-AOP(Association of persons)
B-BOI(Body of individuals)
C-Company
F- Firm
G-Government
H- HUF(Hindu Undivided Family)
L-Local authority
J-Artificial juridical person
P-Person(Individual)
T-Trust(AOP)

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PAN CARD Application Form:

BENEFITS OF PAN CARD:

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 IT Returns Filing: All individuals and entities who are eligible for Income tax are
expected to file their IT returns. A PAN card is necessary for filing IT returns, and is
the primary reason individuals as well as other entities apply for one.
 Opening a bank account: A PAN card is required in order to open a new bank
account, whether it is a savings or a current account. All banks, whether public,
private or cooperative, require the submission of a PAN card in order to open an
account with them.
 Buying or selling a motor vehicle: If you wish to buy or sell a motor vehicle worth
more than Rs.5,00,000, you must to provide your PAN Card details when conducting
the transaction.
 Applying for a credit or debit card: When applying for either a debit card or a
credit card at any bank or financial institution, furnishing your PAN card details is
mandated by regulations. The bank will not issue the card if this criterion is not met.
 Purchase of jewellery: If you are looking at buying any sort of jewellery that is
valued at over Rs.5,00,000, you will have to provide your PAN card details at the
time of purchase.
 Making investments: Investing in securities is seen as a good way to build your
wealth. If you are considering investing in securities, you would have to furnish your
PAN details for any transactions amounting to above Rs.50,000. This extends to
equities, mutual funds, bonds as well as debentures.
 Proof of Identity: a PAN card is accepted as valid proof of identity anywhere in the
country and, and is also considered as proof of age. It can also be used as proof of
identity when making an application for a passport, voter ID, driving licence,
electricity connection etc.
 Foreign Exchange: If you are travelling abroad and wish to convert your Indian
currency into foreign currency, you are required to provide details of your PAN at the
money exchange bureau/bank/institution where you are converting the money.
 Property: Buying, selling or renting a property in India now requires PAN card
proof. In the case of buying property, the PAN details of the buyer as well as the
seller have to be listed on the sales deed and any other such documentation for the
sale to be complete.
 Loans: If you require to take out a loan, all loan providers, both banks as well as other
lending institutions, require you to submit details of your PAN at the time of loan

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application. All loans, from education loans to personal loans require PAN details for
the loan to be approved.
 Fixed Deposits: If you plan on investing your money in a Fixed Deposit (FD)
amounting to above Rs.50,000 in a bank, you will have to provide your PAN details.
This is done as the bank will deduct TDS (Tax Deductible at Source) on the FD
interest amount.
 Cash Deposits: If you are making a cash deposit that amounts to over Rs. 50, 000 at a
time, you will have to submit your PAN details as well. This is in keeping with the
RBI mandate, which directs banks to report any large cash deposits to the RBI, as a
way to prevent money laundering.
 Telephone Connections: If you wish to get a new telephone or mobile phone
connection, it is mandatory to submit your PAN details, as private cellular operators
will not provide you with a connection without it.
 Insurance Payments: As per the Income Tax Department directives, PAN card
details have to be furnished when making an insurance payment exceeding Rs.50,000
a year.
 Tracking Financial Transactions: The PAN card enables the Income Tax
Department to monitor all financial transactions, which plays a crucial role in
assessing the tax liability of individuals and organizations. This helps in curbing tax
evasion, making it a significant utility of the PAN card.
 Determining Tax Revenue: The PAN card is instrumental in calculating the total tax
revenue generated in the country. It aids in evaluating the overall tax contributions
and assessing the economic progress of the nation.
 Fixing Taxation Rates: The PAN card plays a role in setting the taxation rates for
entities based on their income. It helps in determining the applicable tax rates and
ensures a fair and efficient taxation system.
 Helps to Start a Business Planning to launch a start-up.There are several PAN card
uses when it comes to starting a business. As per norms laid down by the Government
of India, the PAN is mandatory for every business in the country.

 Deduction in Taxation: One of the primary reasons to have a PAN card is for the
purpose of taxation. If an individual with annual interest earnings exceeding ₹10,000

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on savings deposits has not linked his or her PAN with the bank account, the
concerned bank will deduct TDS at a rate of 30% instead of 10%.
 Opening a Demat Account or Bank Account:According to the current norms, an
individual will not be able to open a bank account if he/she does not possess a PAN
card. However, there is only one exception to this stated rule, and that is when one
opts to open a zero balance account as per Prime Minister Jan Dhan Yojana. In this
case, one can use a Ration card or a Voter ID card as identity proof. Similarly, a PAN
card is necessary when an individual opens a Demat account.

7 KEY USAGES OF PANCARD:

1.Income Tax Returns (ITR)

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When it comes to ITR, a PAN card offers the following uses.

 Filing ITR: Every Indian, living in the country or abroad, needs PAN to submit their
income tax returns.
 Tax refund: If your Tax Deducted at Source (TDS) is higher than your overall tax
liability, it is possible to claim a refund. But, to receive the money in your bank
account, your PAN must be linked with the account.
 Reducing TDS: You can save or reduce TDS by quoting your PAN to various
accounts. For example, banks charge you a 10% TDS if you make over ₹10,000 as
interest income from a savings account linked to your PAN. But, if your PAN and the
account are not linked, a 30% TDS is charged on the interest earned.

2. Opening various accounts

One of the most significant benefits of a PAN card is its requirement for opening different
types of accounts. The list includes the following.

 Bank account: You cannot open any bank account in India without providing a PAN
card. The only exception is a savings account under the Pradhan Mantri Jan Dhan
Yojana.
 Non-Resident Ordinary (NRO) account: If Non-Resident Indians (NRIs) want to
open a rupee-denominated NRO account to keep any income received from India,
they will need to provide PAN details.
 Demat account: If you want to invest money in Exchange-Traded Funds (ETFs),
bonds, shares, and other financial securities, you need to open a Dematerialization
(Demat) account. Submitting your PAN card details is mandatory to open this
account.

3. Making transactions over ₹50,000

In some cases, making a transaction over ₹50,000 requires the submission of a PAN card.
Below is a list of some examples:

 Bank account deposit: When depositing more than ₹50,000 in any bank account, it
is compulsory to provide PAN card details.

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 Restaurant and hotel bills: If you are paying over ₹50,000 in cash towards a
restaurant and hotel bill, you need to provide your PAN card.
 Banker’s check and demand drafts: PAN details are necessary for issuing any
banker’s check, demand draft, or pay orders exceeding ₹50,000.
 Travel-related cash payments: If you are purchasing foreign currency, buying flight
tickets, paying a travel agency, or making any other cash transaction over ₹50,000 for
travel purposes, you need to furnish the PAN details.
 Buying debentures, bonds, and mutual funds: If you spend more than ₹50,000 in a
year to purchase debentures, bonds, or mutual funds, submitting the PAN card is
necessary.
 Payments made to pre-paid options: Any payment over ₹50,000 to gift cards, cash
cards, or e-wallets within a financial year requires you to furnish PAN details.Life
insurance policy premium: If the yearly premium for your life insurance policy is
more than ₹50,000, it is mandatory to provide your PAN details.

4. Buying and selling

The importance of a PAN card is not limited to only the above transactions; you need it to
buy and sell specific services or products as well. These are as follows:

Any immovable asset and property valued over ₹10 lakhs.

Services and goods that cost more than ₹2 lakhs.

Securities priced over ₹1 lakhs.

Any vehicle excluding two-wheelers.

Bullion and gold valued over ₹5 lakhs.

5. Registration of a business

Registering a new business requires the acquisition of a Tax Registration Number (TRN). To
get the TRN, you must submit the PAN card details of the company and its lawful owners.

6. Foreign transaction

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Many types of foreign transactions require your PAN details, irrespective of the amount of
transaction. Some examples are as follows:

Transferring money from a Non-Resident External (NRE) account to an NRO account

Sending money to another country from India

7. Identity proof

Apart from all the uses mentioned above, you can also use a PAN card as valid ID proof.

CONCLUSIONS:
The PAN is unique number assigned to each individual and is valid for the life time of the
holder throughout India. An important point to note is that the PAN is not affected by a
change of address. The PAN is mandatory for a majority of financial transactions.

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2.FIVE INCOME HEADS:

For tax computation purposes the income earned by you during a financial year is divided
into 5 heads of income in accordance with SECTION 14 of the IT Act 1961.Having a clear
understanding of the 5 income tax heads will make it easy for you to accurately declare

1. Income from Salary

If you are a professional with a salary as your primary source of income, this head is
primarily applicable to you. Under this heading, any compensation paid to you as employee
remuneration, is accounted for. However, remember that income will only be considered
under this head if there is an employee-employer relationship between the payee and the
payer of such salary.

The income under the salary head involves an employee’s basic wages, pension, perquisites,
gratuity, commission, annual bonus and any salary paid in advance, if applicable. Upon
adding the various components under this head, one can get their gross income.

The following are some of the common allowances for which you can claim tax deductions:

1. HRA

House Rent Allowance (HRA) is generally part of a standard salary package. It is an

allowance that employees receive to pay their house rent. Subject to certain conditions, you
can claim exemptions for HRA under Section 10 (13A) of I-T Act, 1961. The tax exemption
you can claim for HRA will be the lowest among the following:

HRA received from your employer

50% of the basic salary if you live in a metro city or 40% if you live in a non-metro city

Actual rent paid per month minus 10% of your annual salary.

2. Conveyance Allowance

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This is an allowance that employers generally pay to compensate for the cost of travel
between your home and workplace. Under Section 10 (14(ii)) of I-T Act 1961, you can claim
a maximum tax exemption of ₹1,600 per month or ₹19,200 per year.

3. LTA

Leave Travel Allowance or LTA is a part of your compensation which you can use to pay for
your personal travel expenses. It is a cost-to-the-company (CTC) component and is usually
offered as a yearly benefit. However, note that subject to certain conditions and limits, you
can claim tax benefits against LTA for up to 2 leisure trips in a block of 4 calendar years,
under Section 10(5).

4. Medical Allowance

This is an allowance that is paid to employees to help them meet their medical expenses.
Under Section 17 (2) of I-T Act, 1961, you can claim tax exemption of up to ₹15,000 by
producing your supporting medical documents.

Latest Update.Please note that from 2019, tax exemption for medical allowance has been
made part of the standard deduction of ₹50,000, which also includes your conveyance
allowance.

Example:Mr. Kumar age 45 years is an employeeof Forex Ltd . Delhi.Hr receives the
following receipts from the employer during the financial year 2022-2023.

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Particulars Amount

Basic Salary 35000 p.m.

Bonus 24000 p.m.

Dearness allowances(40%forming part of all benefits) 2000 p.m.

House Rent Allowances (Rent paid Rs.25000p.m.) 20000 p.m

Children Education Allowances 250 p.m.

Transport Allowance 300 p.m.

Servant Allowance 1200 p.m.

Assistant Alloweance(Actual Expenditure Rs.1500) 3000p.m.

City Compensatory Allowance 2000p.m.

Medical Allowance 1000 p.m.

Solution:

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Particulars Amount

Basic Salary 4,20,000

Bonus 24,000

Dearness Allowance 24,000

House Rent Allowance 25,200

Children Education Allowance 600

Transport Allowance 3,600

Servant Allowance 14,400

Assistant Allowance (Actual expenditure 1500p.m) 18,000

City Compensatory Allowance 24,000

Medical Allowance 12,000

Gross Taxable Salary 5,65,800

Less: Dedcuctions under 16 -

Standard Deductions 50,000

Net Taxable Salary 5,15,800

2. Income from House Property

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The second of the 5 heads of income includes income from house property. It accounts for all
rental income earned by a taxpayer. Sections 22 to 27 of I-T Act, 1961 cover this income
head in great detail. However, note that if a taxpayer’s house has not been rented out, then the
amount that the person would have received as rent if he/she had let it out, would be
considered as taxable income under this head.

This is a head under which tax is calculated on the basis of assumption. Moreover, tax is
levied both on income earned from house property and commercial property. The different
deductions that come under this head of income are standard deduction, deductions for home
loan interest payment, and deduction for municipal tax. Here, an assessee will also have to
pay 10% TDS on rent if the rent value is more than the specified limit. Here are a few
conditions that must be fulfilled for the income to be taxable under this head:

 The assessee should be the house property owner

 House property can include a building, a land appurtenant, or a bungalow
 Individuals must not use their property for any other purposes than residency

Annual Value :This is the actual rent received or to be received by the property owner on
renting out the house.

Municipal Value:This is the value on house property as calculated by the municipal

authoritiesfor imposing the municipal taxes.

Fair Rent Value: Fair Rent value is the rent which is a similar property with similar features
in the same locality would fetch.

Standard Rent:The standard rent is determined under the Rent Control Act.If the standard
renthas been fixed fpr any propertyunder the Rent Control Act,the property owner cannot
charge a rent higher then the standard fixed rent.

Gross Annual Value(GAV): This is the highest of the

 Rent received
 Fair Market Value
 Municipal Market Value

In case of Rent Control Act applies,Gross Annual Value will be highest of the

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 Standard Rent
 Rent Received

Example:Compute the gross annual value for the following properties.

Particulars House 1 House 2 House 3

Municipal Value 1,50,000 1,70,000 1,40,000

Fair Rent 1,70,000 1,90,000 1,50,000

Standard Rent 1,60,000 1,80,000 1,60,000

Annual Rent 1,80,000 3,00,000 1,50,000

Unrealised Rent 25,000 50,000 40,000

Period of Vacancy 3 Months 2 Months 1 Month

Solution:

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Particulars House 1 House 2 House 3

Municipal Value 150000 1,70,000 1,40,000

Fair Rent 1,70,000 1,90,000 1,50,000

Higher 1,70,000 1,90,000 1,50,000

Standard Rent 1,60,000 1,80,000 1,60,000

Annual Rent Received 1,80,000 3,00,000 1,10,000

Higher 1,80,000 3,00,000 1,60,000

Less:loss due to vacany 45000 50,000 12,500

Gross Annual Value 1,15,000 2,50,000 1,37,500

3. Income from Capital Gains:

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If any profit/gain arises from the transfer or sale of a capital asset held as an investment, it is
taxable under capital gains. Income or proceeds from a large number of asset classes, such as
stocks, bonds, mutual funds, gold, and real estate among others, can be considered under this
head. You should also remember that capital gains are generally classified as short- and long-
term gains. Based on the asset class, long-term capital gains tax is applied at a maximum rate
of 20% on investments held for 3 years or more, while short-term capital gains tax is applied
at a maximum rate of 15% on investments held for less than 3 years. However, you must
check if the income is eligible for an exemption under Sections 54, 54B, 54EC, 54F, 54D,
54ED, 54GA, or 54G.

Capital gains fall into two categories:

 Short-term capital gains: Gains realized on assets that you've sold after holding
them for one year or less.
 Long-term capital gains: Gains realized on assets that you've sold after holding them
for more than one year.

Capital gains shall be chargeable to tax if following conditions are satisfied:

a) There should be a capital asset. In other words, the asset transferred should be a capital
asset on the date of transfer;

b) It should be transferred by the taxpayer during the previous year;

c) There should be profits or gain as a result of transfer.

Both short and long term gains must be claimed on your annual understanding of the
distinction and factoring it into investmentstrategyis particularly important for day traders
and others who take advantage of the greater ease of trading in an online market.Realized
capital gains are your actual profits when you’ve sold an asset, and they’re subject to capital
gains tax. Unrealized capital gains are an estimate of your profits, but since you haven’t made
a sale, you don’t have to pay tax on them.For example if you own a stock that goes up in
price but you have’nt sold it yet , that is considered as an unrealised capital gain.

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Example: Mr. Sudhir purchased 200 shares of Reliance Industrues Ltd. In December 2019 at
a cost of Rs.1300 per share and sold the same on January 2020 for Rs. 1500.Sudhir has paid a
brokerage of Rs.30 to the broker.

Solution: Calculation of short term capital gain tax.

The full value of consideration received 3,00,000

Less Expenditure incurred for the sale 30

Net sale consideration A 2,99,970

Less: Cost of acquisition B 2,60,000

Shirt term capital gain C=A-B 39,970

Period of holding 1 month

Rate of tax 15%

Short term capital tax payable 5,996

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4. Income from Profits and Gains of Business/Profession:

Your income will be considered under this head if your earnings come from a business or if
you are self-employed. To calculate your profit or gross income, you will have to deduct
your expenses from the total revenue. Then, tax will be applicable under this income head.
This head will also include incomes, such as bonuses, salary, and profit earned due to a
partnership with a business organisation. However, the following rules apply:

 A taxpayer must be controlling the operations of this business or profession

 There business or profession declared under this head must be legitimate
 The business or profession in question must be carried out by the taxpayer
themselves.
 The taxpayer must be actively engaged in a particular business or profession for the
greater part of the previous year
 If taxpayers operate any other professions or businesses, they must also include it

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Example:Mr. Sudhir prepared the following profit and loss accountfor the cloth shop ended
31 st March 2020.Find out the income from the business for the Ay 2020-21.

Profit and loss for the year ended 31st March 2020

Particulars Amt Particulars Amt

Salaries and wages 33,000 Gross profit B/D 3,34,725

Rent 1,600 Gifts received from 1,275

relatives

Household expenses 82,000

Income tax 900

General expense 800

Advertise expense 600

Gifts to relatives 900

Fire insurance premium 400

Life insurance premium 2100

Bad debts reserve 800

Audit fees 400

Net profit C/D 2,11,500

Total 3,35,000 3,35,000

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Solution:

Computation of Income from Businessof Mr. Sudhir

Particulars Amt Amt

Profit as per profit and loss 2,12,500

Household expenses 82,000

Income tax 900

Gifts to relatives 900

Life insurance premium 2100

Bad debts reserve 800 89,700

Total 2,91,200

Gifts received from relatives 1,275 1,275

Taxable Income from Business 2,97,925

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5. Income from Other Sources:

For the earnings that do not belong to any of the heads of income mentioned above, it will
fall under the 5th category called income from other sources. Some common examples of
earnings that fall under this head include income from lottery, gambling, gift card games,
bank deposits, rewards from other sports, and more. Section 56(2) of the IT Act covers these
incomes.Now that you know what the various heads of income are, it may be easier for you
to classify your income, based on the source, and file your income tax returns without
mistakes. It may also be easier for you to forecast your tax liabilities for the year and plan
your investments and savings accordingly. Equipped with this knowledge, you may also be
able to avoid penalties for non-payment of tax under a particular head of income or incorrect
filing of tax.

Example of income from other sources include:

 Income earned from winning lotteries, races, card games, other games like gambling

or betting

 Income earned from letting out machinery or equipment

 Money or movable/immovable property received without consideration or inadequate

consideration during previous year

 Interest on compensation or enhanced compensation received

Conclusion

Rather than assuming income tax as a burden citizens of India should contribute to the
development of the nationby paying the income tax.If people began to perceive income tax as
a hardship then our nation will suffer the losses resulting in economic crisis.

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3.Consolidated ITR

Introduction

An income tax return(ITR) is a document that you file with the government. This return
informs the government about your income, investments and the tax payable.

5 Reasons Why Should You File ITR?

Claim Tax refunds: If you earn less than Rs 5 lakh a year, you can get back all the tax that
was deducted from your income only by filing tax returns by the 31st July deadline.

Legal consequences: If you don't file tax returns, the income tax department may send you a
notice. You may face huge penalties and taxes if you do not file ITR, despite their reminder.

Carry forward of Losses: If you have losses in your business or capital gains, you can carry
them forward to reduce your future tax liability by filing tax returns on time.

Verified income statement: Freelancers and self-employed people don't have official
income statements like salaried employees do, so filing tax returns is the most reliable way to
verify their income.

Loan and Visa application: When applying for a loan or visa, your last 3 years ITR is
required. Submitting tax returns from the last few years can help lenders or embassies verify
your financial status and eligibility.

What Happens If ITR Is Not Filed ?

Late-filing fee: If you do not file ITR within the due date, you may have to pay a late-filing
penalty of Rs 5,000. This penalty will be reduced to Rs 1,000 if your income is below Rs 5
lakh.

Interest: You may have to pay interest under Section 234A @ 1% per month or part month
on the unpaid tax amount.

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How To File ITR For FY 2023-24?

If you get a salary, you can simply upload your Form 16, and ClearTax will prepare your
return automatically and help you finish e-filing quickly.

If you are a freelancer or run a small business or a home-based business like a Kirana store or
an e-commerce seller (Section 44AD or 44ADA), ClearTax is the easiest place to e-file your
ITR-4. Our CAs can prepare and e-file your income tax return. Please have a look at our CA-
assisted plans here

ClearTax automatically selects the correct ITR form applicable to you. We support all ITR
forms – ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6, and ITR-7

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4.TDS

Introduction

TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of
making specified payments such as rent, commission, professional fees, salary, interest etc.
by the persons making such payments. Usually, the person receiving income is liable to pay
income tax. But the government with the help of Tax Deducted at Source provisions makes
sure that income tax is deducted in advance from the payments being made by you. The
recipient of income receives the net amount (after reducing TDS). The recipient will add the
gross amount to his income and the amount of TDS is adjusted against his final tax liability.
The recipient takes credit for the amount already deducted and paid on his behalf.

Any person making specified payments mentioned under the Income Tax Act is required to
deduct TDS at the time of making such specified payment. But no TDS has to be deducted if
the person making the payment is an individual or HUF whose books are not required to be
audited. However, in case of rent payments made by individuals and HUF exceeding Rs
50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not
liable for a tax audit. Also, such Individuals and HUF liable to deduct TDS @ 5% need not
apply for TAN. Your employer deducts TDS at the income tax slab rates applicable. Banks
deduct TDS @10%. Or they may deduct @ 20% if they do not have your PAN information.

For most payments rates of TDS are set in the income tax act and TDS is deducted by the
payer basis of these specified rates. If you submit investment proofs (for claiming deductions)
to your employer and your total taxable income is below the taxable limit – you do not have
to pay any tax. And therefore no TDS should be deducted from your income.Similarly, you
can submit Form 15G and Form 15H to the bank if your total income is below the taxable
limit so that they don’t deduct TDS on your interest income. In case you have not been able
to submit proofs to your employer or if your employer or bank has already deducted TDS and
your total income is below the taxable limit) – you can file a return and claim a refund of this
TDS. The complete list of Specified Payments eligible for TDS deduction along with the rate
of TDS.

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Types of TDS

Here are some of the income sources that qualify for TDS:

 Salary

 Payments to Contractor

 Commission payments

 Sale of House

 Insurance Commission

 Interest on securities

 Interest other than interest on securities

 Rent Payment

 Professional fees

 Online Gaming

 Winning from games like a lottery, crossword puzzle, card, etc.

Advantages of TDS

 It ensures a continuing flow of revenue to the Government.

 It is a measure to prevent tax evasion.

 It helps in increasing the tax reach as it is deducted at the time of payment itself

preventing the commitment of fraud.

 It widens the tax collection base.

 It is a way to share responsibility of tax collection between government and the

deductors.

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Sub sections of TDS (F.Y.2023-24)

Section For payment of Threshold limit TDS Rate

192 Salary income 2,50,000 Slab rate

192 A EPF Premature 50,000 10%

withdrawal

193 Interest on govt 10,000 10%

securities

194 Dividend 5,000 10%

194 A Interest by bank/post 40,000(50,000 for senior 10%

office citizens)

194 A Interest other than 5,000 10%

securities

194 B Winning from 10,000 30%

lotteries puzzle and
game

194 BB Winning from hirse 10,000 30%

race

194 C Contact 30,000(Single 1%(Individual)

transaction)1,00,000(aggregate
2%(others)
of transaction)

194 D Payment of 15000 5%(10%in case of

InsuranceCommissio domestic
n
companies)

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TDS Form 16 A

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BYKCC/SAISHA NAGLE/SYBBA/2023-2024