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No TDS shall be deducted if the single-time payment to the contractor does not exceed RS. 35000 or Rs. 1,00,000 in aggregate during the year. TDS Can be deducted when the date of actual payment of cash or the date of crediting the sum to the payee's account or the date of issue of cheque, draft, or by any other mode, whichever is earlier.
Tax withholding, also known as tax retention, pay-as-you-earn tax or tax deduction at source, is income tax paid to the government by the payer of the income rather than by the recipient of the income. The tax is thus withheld or deducted from the income due to the recipient. In most jurisdictions, tax withholding applies to employment income.
In India, a Tax Deduction and Collection Account Number (TAN) is a 10 digit alpha-numeric number issued by the Income Tax Department to the persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961. [1]
Only an employer with a TAN (Tax Deduction Account Number) is eligible to deduct TDS, and therefore issue a Form 16; If TDS is not deducted the employer is not under obligation to issue a Form 16 to the employee; If TDS is deducted, the responsibility to issue the Form 16 to the employee lies with the employer
Rules vary by jurisdiction and by balance of total payments due. Federal employment tax payments are due either monthly or semi-weekly. [24] Federal tax payments must be made either by deposit to a national bank or by electronic funds transfer. If the balance of federal tax payments exceeds $100,000, it must be paid within one banking day.
If an employer has employed more than 20 employees, he is required to make payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly(i.e. by the 15th of next month from the end of the quarter). Person responsible to pay professional tax
The tax is paid by employers based on the total remuneration (salary and benefits) paid to all employees, at a standard rate of 14% (though, under certain circumstances, can be as low as 4.75%). Employers are allowed to deduct a small percentage of an employee's pay (around 4%). [7] Another tax, social insurance, is withheld by the employer.
All countries have a tax system in place to pay for public, common societal, or agreed national needs and for the functions of government. [ citation needed ] Some countries levy a flat percentage rate of taxation on personal annual income, but most scale taxes are progressive based on brackets of yearly income amounts.