Tax Ready Reckoner

Section 194E of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on payments made to non-resident sports professionals, entertainers, or sports associations for income earned in India. This ensures tax compliance on earnings from sports events, performances, or related activities. 1. Applicability of Section 194E ✅ Covered Payments: Fees(participation, prize money, appearance). Advertising income(e.g., endorsements). Article contributions(newspapers/journals related to […]

Section 194EE of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on withdrawals from the National Savings Scheme (NSS) and certain other small savings instruments. Below is a detailed breakdown of its provisions, exemptions, and recent updates: 1. Applicability of Section 194EE ✅ Covered Payments: Withdrawals(principal + interest) from NSS accounts. Maturity proceedsfrom linked schemes like National Savings Certificates (NSC) if

Section 194G of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on commission or remuneration paid to lottery ticket distributors or agents. Below is a detailed breakdown of its provisions: 1. Applicability of Section 194G ✅ Covered Payments: Commissionfor selling lottery tickets (including state/government lotteries). Bonus/incentiveslinked to ticket sales. ❌ Exclusions: Direct lottery winnings(covered under Section 194B). Payments ≤ ₹15,000in

Section 194H of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on payments made as commission or brokerage to resident individuals/entities. Below is a detailed breakdown of its provisions, exemptions, and compliance requirements. 1. Applicability of Section 194H ✅ Covered Payments: Commission(e.g., sales agents, referral fees). Brokerage(stockbrokers, real estate brokers). Any payment for services rendered as an intermediary. ❌ Exclusions:

Section 194-I of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on rent payments exceeding specified thresholds. Below is a structured breakdown of its provisions, rates, exemptions, and compliance requirements: 1. Applicability of Section 194I ✅ Covered Payments: Rent for land, building(residential/commercial), factory premises, furniture, fittings, plant, machinery, or equipment. Payments under lease, sub-lease, tenancy, or any similar arrangement. ❌ Exclusions: Refundable security deposits(not treated as

Section 194-IA of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on payments made for the purchase of immovable property (excluding agricultural land) when the transaction value exceeds ₹50 lakh. Below is a structured breakdown of its provisions, compliance requirements, and penalties. 1. Applicability of Section 194-IA ✅ Covered Transactions: Residential/Commercial Property(flats, houses, land, buildings). Joint Ownership(threshold

Section 194-IC of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on monetary payments made under Joint Development Agreements (JDAs) referred to in Section 45(5A). This provision ensures tax compliance on transactions where landowners collaborate with developers for real estate projects. Applicability of Section 194-IC ✅ Covered Transactions: Payments under registered JDAswhere landowners transfer land/building (capital assets) to developers in exchange for: Cash/cheque/draft(monetary

Section 194J of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on payments made for professional or technical services, ensuring tax compliance on such transactions. Below is a structured breakdown of its provisions: 1. Applicability of Section 194J ✅ Covered Payments: Professional Services: Legal, medical, engineering, architectural, accountancy, consultancy, etc. Royalties(e.g., technical know-how, copyrights, patents). Non-compete fees(treated as

Section 194K of the Income Tax Act, 1961, mandates Tax Deducted at Source (TDS) on income distributed to unit holders of mutual funds, UTI, and other specified funds. Below is a structured breakdown of its provisions: 1. Applicability of Section 194K ✅ Covered Payments: Dividend incomefrom mutual funds (equity/debt). Income distributedby Unit Trust of India (UTI). Other specified funds(e.g., REITs, InvITs).