TDS (Tax Deduction Source)
What is TDS:-
What is TDS:-
1.
It is an Income tax.
2.
It is deduct by the
deductor.
3.
It is an obligation
on tax deductor.
4.
It is deducted @
certain rates & Deposit to the central Government.
Example-
Mr. Gaurav is working in Relience and comp. and his income is 50000/- per
month. It is the example of
TDS on Salary.
Tax Rate
Slab:
0-250000
|
Nil
|
0-300000 (senior Citizen)
|
Nil
|
250000-500000
|
5%
|
500000-1000000
|
20%
|
1000000-
above
|
30%
|
*What is Rebate?
*Rebate is a deduction which comes under
section 87A of income tax law. This deduction is given by the government. So
that the lower income person would not bare the burden of tax. Maximum rate of Rebate is Rs. 2,500. On FY- 2016-17 the rebate amount was 5000/-
now it change into 2500/-
*Who can claim for the Rebate?
*The
person who fulfills the condition will be claim for the rebate.
- The
person should be resident of India.
- Total
Income of the person should be equal to or less than Rs 350000/- without
any deduction.
If both the above condition are fulfill then the rebate is
available of Rs.2500. if the tax payable amount is more than 2500/- then the Education
cess(3%) will be added on the taxable income.
It can be understand Through an Example:-
Total Income
|
Tax payable
|
Rebate
|
Tax Payable+ Cess@3%
|
285000
|
1750
|
750
|
0
|
290000
|
2000
|
1000
|
0
|
310000
|
3000
|
2500
|
500+15 = 515
|
350000
|
5000
|
2500
|
2500+75=2575
|
*Who
can not claim for the Rebate?
*HUFs or firms, or
companies cannot claim this rebate.
PAN:- Permanent Account Number.
It is necessary for all the Who is paying Tax like- Individual,
Company, and Firm etc. if you don’t have the PAN card the TDS rate will be
deducted @20%.
*Format
of PAN card:-
*It is unique
code
*It
has 10 digits combined alpha and Numeric.
ABCPA 1234 K
4th
latter = P Stand for Individual
5th
latter = A stand for surname
Last
latter = K stand for father’s name.
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