TDS

TDS dividend income

Why TDS is deducted on dividend income

Earlier, companies deducted dividend distribution tax and handed over the funds to the shareholders. Budget 2020 tweaked the tax law this financial year and made dividends taxable in the hands of investors at the individual tax rate of the investor. However, companies were asked to deduct TDS. To give relief to small taxpayers, only dividend income …

Why TDS is deducted on dividend income Read More »

advance tax

Pay advance tax on personal income- save interest

Income Tax Department strives to make it as easy and convenient for citizens to comply with advance tax payments. So, one has the option of paying it in 4 installments over the financial year. However, if you default, there are some consequences in the form of interest penalty. While salary is subject to tax withholding …

Pay advance tax on personal income- save interest Read More »

TDS

How TDS works

TDS stands for ‘Tax Deducted at Source’. TDS has been introduced to collect tax from the source from where an Individual’s income is generated. It is applicable on the various incomes received such as salaries, interest received, commission received etc. Different rates of TDS have been prescribed by the Income Tax Act for different payments …

How TDS works Read More »