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A stride forward and two steps backward. What for? The tax system is similarly subject to the same principles of the problem. The same mistake or problem persisted for a particular group of taxpayers under the Tax Deducted the Source (TDS) system. However, after adding section 197 of Income-tax Forms 13, those who must pay Tax Employer deducts at Source are no longer put through difficulties.

There are instances when the amount taken from the assessee’s revenue in the title of the TDS is greater than the absolute amount due to the Department of Income Tax. This results in excess on the taxpayer’s part, who then has to reclaim and recoup the money through the income tax collection system, which is difficult and time-consuming.

The Department of Income Tax will now provide a certificate to the assessee to prevent the hassle of collecting your cash back. This procedure was developed to help avoid such predicaments. Start with nothing.

What does TDS (Tax Deducted at Source) mean?

The taxpayer that obtains income under TDS, with the guidance of a tax consultant for NRI in India, does not remit taxes to the government. Instead, the individual paying the taxpayer’s money income reduces the Tax just at the primary stage (such that he may pay it into the government’s treasury) and provides the remaining amount to the taxpayer. In effect, the individual with tax responsibility does not reimburse the government for the Tax. Instead, the individual sending the money to the taxpayer withholds the Tax, puts it into the government’s accounts, and then gives the remaining amount to the taxpayer. Using income tax return 13, a person deposits the money they have withheld as Tax to the federal government, known as revenue at source deduction.

What actions has the government taken to prevent such an annoyance?

The Central Government added Section 197 to the law. According to this modification, the individual in the above situation must write and submit a request to the Corporate Tax Officer to get a certificate regarding Nil/Lower deductions of TDS. The application must be made in Form 13 to the Revenue Tax Officer by Section 197. When the Taxation Officer is satisfied that the reduced tax deduction is appropriate, they must issue the certificate.

The TDS would be taken out after considering the TDS rate stated in the certification on Income Tax return 13 after the certificate above has been obtained under Article 197. It’s important to note that now the certificate will be provided online, and the taxpayer may access and download it via the Taxation Department’s website.

Particulars Needed When Filing Forms 13

The following Information must be provided:

  • Your name and PAN
  • Information on earnings during the previous three years and earnings projections for the upcoming year
  • Look For Information regarding the reason the transaction is being made.
  • Information on taxes that were paid this year but were deducted
  • Details on tax payments made over the last three years
  • Email ID:
  • Phone Number
  • Current Year Tax Liability Estimates
  • TAN of the other party

The Taxation Officer must be convinced that the taxpayer’s money income merits a reduced TDS deduction to issue the Lower Certificate of TDS. Always follow the NRI tax planning in Pune for better understanding.

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