Friends,
Deduction of Tax at correct rate is very important for deductor and minor mistake in deduction leads to penalty in shape of Interest on late deposit and dis allowance of Expenses. We have provided the Tax deduction rates chart (TDS rate chart) for Financial year 2014-15. Minor changes has been made in TDS rates for FY 2014-15 by Finance Minister in Budget .
1. A new section 194DA has been inserted wef 01.10.2014 relating to payment in respect of life insurance policy
2. TDS u/s section194A ,the interest income payable by special purpose vehicle to a business trust has been withdrawn wef 01.10.2014.
3. TDS u/s 194LBA for income distributed u/s 115UA TDS is required to be deducted on 10% in case of resident and 5 % in case of payment to non resident.
4. Disallowance of expenses under section 40(a)(ia) has been extended to all sections of TDS .However Disallowance % has been reduced to 30% from earlier 100%. Means if tds has not been deducted and deposited on 100 Rs then only 30 Rs will be disallowed in that year. Further disallowed amount will be allowed as exp.in year in which tds has will be deducted & Paid.
Complete details Of TDS rate changes for financial year 2014-15, Tcs rate changes, Due date to deposit TDS , Due date for Form 16, Due date for Form 16A , Due date for ETDS return Form 24Q,Penalty and interest provision for late deposit of TDS ,consequences for default in filing of Etds Return , TDS rate applicable in case of Non submission of PAN ,TDS rate applicable on service tax or not , on job work or not , which rate is applicable to individual , HUF , who should deduct TDS , who should not deduct tds ,whether tds should be deducted on service tax on rent or professional services all such topics has been covered here under.
