All about TDS deductor and certificates of TDS

What is TDS?- The complete form of TDS is “Tax Deducted at Source.” TDS means that some percentage of your income is deducted by the payer who pays you the payment.

For example, the employee has to deduct TDS from the salary amount before paying the salary by the employer. After deducting the TDS, the balance salary has to be paid to the employee.

After deducting the TDS, the TDS amount has to be deposited by the employer in the government’s account, and after depositing it, the employer has to submit the TDS statement to the government.

In this TDS statement, the employer has to give information about the TDS deducted and the TDS deposited in the government account.

After deducting the TDS, the employer also has to issue a TDS certificate to his employees, proof that the TDS has been deducted from the salary by the employer. It has also been submitted to the government.

The time limit for submission of TDS amount, TDS statements, and issuing TDS certificates is also mentioned in the Income Tax Act, 1961. For not complying with all these provisions up to this time limit, the person who deducts TDS must face heavy interest and penalty.

What are TDS deductor and TDS deductive?

In any payment transaction, there are two persons. The first person is the one who makes the payment, and the second person is the one who receives the compensation.

As per the rules of TDS, whichever person makes the payment, the person is responsible for deducting the TDS. The person who deducts TDS is called TDS deductor in the language of income tax. The person who receives the payment, i.e., the person whose TDS is deducted, is the TDS deducted.TDS is deducted on what kind of payment and when. At present, many payments have been brought under the purview of TDS by the government; that has become mandatory to deduct TDS on all types of payments. If you don’t deduct TDS, you will be charged interest and penalty.

Some of the import payments that come under the purview of TDS –

• Salary

• Interest

• Dividend

• Professional fees

• Commission

• Brokerage

• Rent payment

• Lottery/Lottery TDS etc., on the amount won in online games.

However, TDS on all these payments will be deducted only if the payment exceeds the prescribed limit. TDS will not be deducted if payment is less than the prescribed limit.

What are TDS certificates?

After deducting the TDS of another person by any person, that person has to issue TDS certificates. These TDS certificates contain complete information about the TDS amount deducted, what rate the TDS has been deducted, and what kind of payment.

The TDS deductible can also verify the TDS amount mentioned in these TDS certificates with Form 26. Suppose there is any difference between the two. In that case, you should also contact the TDS deductor to know the reasons for these differences.TDS certificates are issued in forms such as Form 16/16A/16B/16C, etc. In which form you will be given a TDS certificate will depend on which payment your TDS will be deducted.

Note: Looking for the Best TDS Return Filling in Delhi/NCR? Get expert advice on the complete process of filing a TDS return online in India with Taxacadmy.

What is tally and how to learn it?

If you are a working person and use a computer in the office to manage the company’s data, then maybe you will be using Tally? What if you don’t know what Tally is?

So don’t worry because we will get detailed information about the Tally in today’s article. And you will understand how the importance of Tally has increased in the present time. The account (ledger) has a special significance in any business. But many years ago, many documents were collected in banks, private companies, government offices, etc., to record the records of business transactions, collection of money, expenditure incurred on goods and taxes, etc. More time was not only spent on managing and maintaining these records. Every year, many forests were cut for the letters used for these documents.

But today, the situation is different! In today’s era of computers, many tasks can be done quickly and fast. Tally is used for accounting in government offices, banks, and private companies. Due to the many features of Tally, today, Tally is used in various MNC companies around the world. Therefore, we need to have Tally information as well. Do you know what these Tally are?

What is Tally?

Tally is accounting software that is usually used in business to calculate the financial payments of the company. Tally can be used to manage the stock of goods in a company, expenses incurred on goods, and information related to the product can be protected under tally.

In simple terms, the primary function of Tally is to organize a company’s account. In which records of income and expenditure, cash-lending, the amount paid, and various bank accounts are available.

Tally Software to Tally Solution Pvt. Ltd. A multinational company has manufactured it. Headquartered in Bangalore and Tally has been the people’s first choice as well-known accounting software for many years. Due to which more than 10 million businesses have used Tally so far

Utility and features of Tally-software

• The old ledger system has been replaced by Tally software, and it has saved both time, money, and energy.

• Due to its user-friendly and simplest use, Tally is used in various financial locations such as banks, auditors, chartered accountants, and small-scale businesses.

• In the traditional account system, the record of the account was arranged with the help of a pen-pencil in a copy, diary, etc. We can also call it a “paper record.” But today, in this era of computers, with the help of Tally software, it has become easier to prepare an account (management task) with columns, graphs, and inbuilt calculators.

• Data arranged in Tally is easy to save for a long time. It was also easy to share that data with another person or company.

• This software has many features in place compared to the old accounting system, in which you can lock the file to keep data safe.

• Mathematical errors can be avoided by using Tally in accounting. Thereby, it helps manage the business where a lot of accounting and calculation is required.

History of Tally-software

Tally software was developed in 1981 by Shyam Sunder Goenka and his son Bharat Goenka.

One of the main objectives behind the preparation of this accounting software was that Shyam Sundar Goenka, at that time, was the owner of a company. The company used to supply raw materials and machine parts to plant and textile mills. During that time, Shyam Sunder Ji was looking for software that could complete the accounting work in his company.

He then shared the idea of software with his son Bharat Goenka. Bharat Goenka received his bachelor’s education in Mathematics. His father asked him to create software that could manage financial operations in his company.

Thus launched the first version of the accounting software; however, it served as an MS-DOS application. This version was named “Neutronics,” Only a limited number of features existed.

In 1999, the company formally changed its name to Tally Solutions. In 2006, the company launched Tally 8.1 and Tally 9 versions. In 2009, Tally Solution launched Tally ERP 9 as a business management solution.

In 2015, Tally Solution launched the tally ERP 9 5.0 version with taxation and compliance features. And recently, there was the launch of the company’s updated GST (Goods and Service Text) compliance software.

Key Features of Tally

• Tally is multi-user software, i.e. multiple users can work in one Tally software. So that the new user does not need a particular computer system.

• After learning the complete knowledge of the Tally software and the working, any person can apply for a job for accounting work in a company, i.e. students can also use tally software without a graduation degree.

• This field has helped make many types of freelancing jobs available to people. Finance managers, financial advisors, public accountants, etc. Nowadays, almost all companies need an accountant who can properly run the accounts.

•Tally is easy-to-use software. Tally software has been designed and developed to organize financial activities in daily life and business.

• Most companies use tally software to record money transactions, which shows that the demand for tally will continue to increase in the coming time.

Many of these types of essential accounting features are in tally software. And with each new version, the characteristics of Tally also keep upgrading.

If you want to take advantage of all these features in real life, you have to try the Tally software yourself, i.e. learn Tally.

How to learn Tally?

• Join the #1 Tally Course: To learn Tally, you can go to a good computer educational institution around you and get a complete overview of the working system of the new version of The Tally on a monthly fee basis. The advantage of these institutions is that you get computers and software to do practicals. You don’t have to buy Tally software to learn. You can join the Tally course after school/college and join the Tally accounting course. Your regular studies also go on, and you keep learning additional skills.

For commerce students, it is essential to learn Tallys because there is no problem in learning their base, i.e. accounting entries because they have already learned it in class. Students in other streams have a little difficulty learning the Tally. They get this problem because of not reading the account topic. But, the Tally teacher conducts special entry classes for such students. So you can learn Tally by being admitted to a computer institution around you to learn Tally

• Tally Education Certified Course: Arrangements have also been made to teach Tally by Tally solution. Suppose there is an institute certified by Tally-solution in the vicinity. In that case, you can learn Tally accounting by taking admission in the Tally course from here also. Tally Education conducts the Tally accounting course. A certificate is also issued on completion of the course, which you can use to take a Tally job and prove your Tally accounting to a prospective employer.

The benefits of learning Tally

Some of the benefits of learning Tally

• You get different career options

• GST containing Tally-learning is taught

• The Tally makers have developed this Tally-course

• Access to the Tally-job portal

• Certificate can be digitally verified

• Valid in the industry

• The online evaluation feature gets

Note: Find the top and best academy (Tax Acadmy)for E-Accounting, tally & GST training in Delhi and grow your career with High paying jobs with the Tally certification. Training cost ✓Course details ✓Class timings ✓Placement facilities.

How is Section 44 AD beneficial to taxpayers, and should you choose this?

The Income Tax Department has brought in a provision of Section 44AD to provide relief to small taxpayers and low turnover taxpayers. Under this section, you will not have to create and maintain your book of accounts, and you will not have to conduct your audit. You will have to pay tax on 8% or 6% of your estimated turnover as your income.

Who is eligible to take advantage of Section 44AD?

This section can be availed only by an individual (proprietor), HUF, or partnership firm. The company and LLP will not get any benefit from this section. This section is only for a person associated with the business. If you are a doctor, lawyer, chartered accountant, or any other professional, you will benefit from Section 44ADA. Even if you are a commission or brokerage agent, you will not get the benefit of this section.

What will be the turnover limit in Section 44AD, and who will be accepted by the small taxpayers?

Only small taxpayers, i.e., those whose turnover is less than two crores in a year can benefit from this section. If your turnover exceeds two crores during the year, you cannot take advantage of this stream.

How will the income on turnover be calculated?

A certain percentage of your turnover will be considered as your income. At present, 8% is applicable to cash turnover and 6% on digital turnover, i.e., turnover through banking. For example, if you have an annual turnover of 50 lakhs and cash turnover is 40 lakhs, and the turnover through banking is ten lakhs, then 8% above 40 lakhs and 6% above ten lakhs will get the estimated income.

40 Lakh x 8% = 3, 20,000/-

 10 Lakh x 6% = 60,000/-

 Total Income = 3, 80,000 /-

Thus, assuming your total income to be 3, 80,000, the tax liability will come out on it.

Note:- If your actual income is more than this, then you will have to show your actual income, and if your actual income is less than this, then you have two ways:-

1.      Get your audit done and show your actual income. or else

2.      At least 6% or 8% of your income should be taxed.

 

Will there be any discount on expenses?

No, there will be no discount on expenses. If you consider this estimated 8% or 6% share as your income, you will not be provided any discount. Suppose there are business expenses of yours, i.e., purchases, labor expenses, salary, worn-out expenses, bank interest, or any other expenses. In that case, it will be assumed that all those expenses have been provided to you and you will not get any further discount on that.

5-year lock-in period

It is important to note that once you take advantage of this section, you will have to file your return in this section for five years. Also, even if you don't take advantage of this section once, you will not be able to take advantage of it for five years. Either you show your income in Section 44 AD for five years, or you show income without it for five years. One year 44AD and the next year the simple rule, you can't take advantage of.

Is it beneficial for you?

Yes, Section 44AD is very beneficial for you because you do not have to maintain your account; only at the end of the year do you have to pay tax on some part of your turnover by declaring it as income. You can avoid various types of questions answered by the Income Tax Department, and at the same time, you do not have to conduct an audit. Only a small return has to be filed at the end of the year, and it is similar to the composition scheme of sales tax. If you are a proprietor, a HUF, then your TDS deducting responsibility also ends.

Will other incomes be taxed separately?

Other than your business, other than yours, i.e., the income of interest or income from rent or a gift from someone or any capital gain. All of them will have to be taxed separately, and they will not get any exemption in this section.

Exemption of tax slab and Section 80C 

Under this section, if you text, you will get the benefit of income tax flap and the exemption of Rs 1.5 lakh under 80C separately, as well as if you are also eligible for a rebate of Rs 5,000/2,500 under Section 87A, the same will be granted to you separately. If you make any big transaction, you must ask your income tax advisor. There may be some errors in this blog, and if it harms you, it will not be our responsibility. These blogs are designed only for your information.

 What are the benefits that the Government offers in Taxation?

1.      The Employee Provident Fund (EPF) & Voluntary Provident Fund (VPF)

The Employee Provident Fund (EPF) is a money-making fund invested by employees. It was purchased to provide employees with the security of their finances and stability. In addition, to EPF, employers and employees both receive 12% of the employee's salary as a dearness allowance and the basic compensation. The deductions are derived from the employee's earnings on an ongoing basis. This helps in saving an enormous amount of money over the long term.

On the other hand, the Voluntary Provident Fund is available to employees who contribute to this PF account. There is no set percentage of the salary contribution.

Public Provident Fund (PPF)

The Public Provident Fund is a continuous contribution option. It gives a good return on investment and the amount of interest. The interest earned and the profits are tax-free in the sense of Income Tax.

The edge of VPF or PF employees who have added 15 years are eligible for the tax in the vicinity. The tax will fall by Section 80C of the Savings Tax.

3.     Equity Linked Savings Scheme (ELSS)

The Equity Linked Savings Scheme provides three years of lock-in time. If a person invests in ELSS funds, they receive two benefits: the accumulation of wealth and tax deduction over time.

In addition, employees who invest in equity mutual funds are tax-free.

Each year you can get a savings of up to Rs. 46,800 tax-free through the investment of ELSS mutual funds. Also, you can claim tax credits in the amount of Rs 1, 50,000 per year.

4.      Premiums for Life Insurance

If you have to pay a sum of money for life insurance with the Life Insurance Company is called Life Insurance Premium. In the LIP, it is possible for you (employee) can make any life insurance premium and also be eligible for tax savings. It could be to themselves or for children or spouses under section 80C. The premiums for many plans can be paid in months, quarters, or years.

If you have multiple policies, you may get a lump sum of taking all the premiums. However, many believe that the costs of LIC policies can be claimed as an income tax deduction. But it's not!!

Let's say that you're paying LIC policies premiums to private companies. If that is the case, you're entitled to tax benefits, and it is subject to section 80C tax savings.

5.      Principal Repayment of Home Loans

If you obtained a home loan through the bank, you'd have to pay it back in two portions. First, you'll pay the interest component of the loan amount. In addition, you have to pay the total amount of the loan, which is known as the principal amount. When you pay back the principal amount, you will be able to claim the tax benefit under Section 80C.

6.      Infrastructure Bond

Recently, the government has developed a brand new clause specifically for the deduction of investment tax. It's available in the form of Tax-Free Infrastructure Bonds. For example, if you put up 1 lakh in this scenario, you'll get an exemption of approximately Rs. 20,000.

7.      National Savings Certificate(NSC)

In reality, you purchased the NSC for a 6-year time to help save taxes. You could get the tax deductions in section 80C of tax savings in this scenario.

8.      Pension fund that is below section 80CCC

There is a particular sub-section in Section 80C. It's called Section 80CCC and is specifically designed for pension funds investments. It allows you to enjoy the advantages of a tax deduction on the investment. It can be found in any private or public financial firm's pension fund.

9.      Tax Saving Bank Fixed Deposit

Another option is to avoid tax by saving it using the Special Fixed Deposit. The deposit is provided through the institution, and the tax-saving fixed deposit will have five years minimum long-term.

10.  Senior Citizen Saving Scheme-2004

This Senior Citizen Saving Scheme is designed for senior citizens only. You can receive a good amount of compensation for the amount they contribute. Furthermore, the investment made is eligible to tax deduction.

11.  Post Office Time Deposit (POTD)scheme

The Post Office Time Deposit scheme gives you a range of investment options. However, only one scheme currently offers the 7.5 percent iterative rate. The rate can be used to benefit from Tax. However, there is no other plan in the scheme of POTD which is suitable for tax deductions.

12.  United Linked Insurance Plan( ULIP) investments

In essence, investing within ULIP is a mix of insurance and investment. It provides you with a deduction of tax that is covered by Section 80C. But, the person must be identified by heavy fees and periods in long locks. They differ from the one ULIP scheme to the following ULIP scheme.

13.  Stamp duty and registration charges for the home loan

Let's suppose that you bought the property with an unsecured loan or by yourself. In this scenario, you are entitled to advantages on tax. These tax benefits cover the cost of registration fees and stamp duty imposed on buying a house. The benefits are as per Section 80C Tax Saving.

14.  Costs for Children's Education

You may be eligible to receive tax benefits from tuition fees you pay to the educational institution or school. However, in section 80C, you must maintain receipts to claim tax benefits.

What is the reason taxpayers must be tax-paying?

Many people think that tax payments are an expense, but it's not that way, and it is an essential contribution by an entity that is legal or individual. Taxes can be used in many ways:

·         Nation Building

·         Initiation of various Government schemes for the general population

·         Improvements in healthcare and education

·         As accountable citizens, we need to pay taxes on time to ensure our country's sustainable and equitable growth.

Visit Website: https://www.taxacadmy.com/tds-return-filing.html

All you need to know about Taxation

India is a vast and heavily populated country. Therefore, to ensure the daily needs of the immense people, the government came up with a tax-exempt contribution- "Tax."

Taxes help the government fund different projects, and these projects boost the nation's economy.

Tax payments provide various benefits to individuals. It offers:

·         Development of Nation

·         Improvements to Framework

·         Social development and,

·         Initiatives to improve the welfare of the nation

What is taxation?

Taxation is a process by which the government of a country collects funds from its citizens to fund its expenses. Taxation applies to all forms of mandatory taxation, from income to capital taxes. Taxation is distinct from the other forms of tax, and it doesn't require authorization and isn't directly tied to any created service.

According to the most recent budget plan, the government will be giving a significant push toward digital currency. It will be focused on providing essentials to those in the middle and the lower classes while doing so will aid youngsters to be self-sufficient.

What are the different types of taxes?

There are two main types of taxes. There are two types of Taxes: Direct Tax and Indirect tax. Additionally, these two kinds of tax are classified into sub-categories. These are listed below:

1.      Direct Tax

If a legal entity or an individual directly pays tax to the government, it is called Direct Tax. Taxes are not shared among individuals and legal bodies. In addition, this Central Board of Direct Taxes ignores direct taxes. Here are the categories of Direct Tax:

Income Tax The Income Tax is one form of tax that is directly assessed on the individual's income. The individual now pays it to the government. Anyone who earns income in any form is required to pay income tax. However, to pay the tax, various tax levels apply to considerable amounts of income.

·         Apart from individuals, tax is also paid by legal organizations. This includes all people in Artificial Judicial, the body of Individual (BOI), Hindu undivided family. They have local companies, officials, corporations, and those belonging to the Association of Persons (AOP).

·         Capital Gains This is where the government imposes the Capital Gains Tax on property sales. The tax is also applied to the gains made from investments. The investment can be made for either short- or long-term capital gains. It covers all types of exchanges in the opposite direction to its price.

·         Securities Transaction Tax: The tax of Securities Transaction is levied on :

a)      Stock marketing and trading in securities, as well as

b)      Securities that are traded via the Indian Stock Exchange

c)      It is also based on the price of the share.

·         Priority Tax Prerequisite Tax refers to the tax used to pay for the employee's rewards and benefits. The intention behind the allowances and help is to be determined for the business.

·         Corporate Tax: Corporate Tax is classified as an income tax paid by the company. It is based on the various tax slabs that are part of the business's income.

Several sub-categories make up the corporate tax:

A)    The Dividend distribution tax: It is taxed on dividends paid to investors by the corporation. It is applied to the net or gross income from an investment made by an investor.

B)    Fringe Benefit Tax FBT is imposed on the employee receiving fringe benefits from their employer. This is a reference to home costs and travel expenses, transit costs, allowance, and so on.

·         Minimum Alternative Tax This tax is controlled under IT Act section 115JA. IT Act section 115JA. According to the provisions of the law department, the IT department is paid by the business.

2.      Indirect tax

When a person pays taxes on products and services, it's called an indirect tax, and taxes are added to goods and services. The government collects indirect tax via GST (Goods and Service Tax). If you require any assistance connected with Goods and Service Tax and GST, you may hire Tax Academy.

What are the advantages of taxes?

When a person pays tax, it will benefit both the taxpayer and the government. Taxpayers benefit from tax benefits can be derived from such methods as:

a)      Simple acceptance of Visa application

b)      Simple application for credit cards as well as loans

c)      Indemnity settlement in cases of accident and others

d)     The payer's Tax can reduce the tax if you meet the eligibility requirements.

On the other hand, for the government, Tax benefits can be derived in various ways, including:

a)      The development of facilities like a perk, government schools, etc.

b)      The economy is growing.

c)      The improvement of the level of living and much more.

The Government uses the Tax to fund various functions, among them including:

·         Welfare and Development Projects

·         The Defense budget is a significant expense

·         Scientific Research

·         Public insurance for the insured

·         Schemes for Pensions

·         Government operation

·         Public Health

·         Public utilities, etc.

·         Taxes are imposed on various income sources like income, wealth, salary and service, rental of property, and more.

Visit the website: https://www.taxacadmy.com/tds-return-filing.html

What's an Export-Import Code?

In India, all individuals who conduct a business exporting and importing goods or services should obtain the IEC registration. The Directorate General of Foreign Trade (DGFT) issues a unique 10-digit code to the person after the IEC registration process is completed. Registration of the Import Export Code aids in the growth of a business. The authorities can issue IECs IEC only once, and the company's owner retains it for the time that the company is in existence.

Important in the context of the IEC Code

• There is no time limit for validity. Once you've completed the IEC Registration process and provided all the required documents, The Import Export Code (IEC) is valid for the company's entire life and doesn't need to be renewed.
• Business Growth - Introducing your products or services to the world market will allow you to expand your business. The Import Export Code (IEC) permits you to market your products in countries other than India.
• No Return Filing Required - There is no obligation to file a return within the IEC Code. There is no further action necessary to ensure its validity. IEC Code once it has been issued.
• Export Subsidies: Companies and companies can benefit from subsidies from DGFT and The Export Promotion Council based on IEC and the Customs department. Custom department.

The benefits of the IEC Code for Business

To obtain the IEC is the most effective method to establish yourself on the international market. Here are some points that can help you comprehend the benefits of IEC. Import Export Code

Simple Registration Procedure

The Directorate General of Foreign Trade (DGFT) has started an online registration process to register for ICE. Registered and unregistered organizations can request the permits and will receive the IEC code in 10 days. If you've already been reported for GST and have not registered for GST, you don't have to fret about a different IEC code. On the exchange level, the GSTIN is used as an identification number.

Benefits of the Government Scheme

Benefits provided by subsidies or other declarations through or otherwise declared by the Export Promotion Council, Customs, or other organizations could be offered at the discretion of IEC Code registered business organizations. Exporters can make exports without paying taxes once they have written a letter of commitment under GST. When taxes have been paid for the exports, exporters are entitled to reimbursement of the amount of taxes paid.

Exploring global markets

The essential advantage for your business will be the registration process for export and import codes. This will allow you to connect with an even more comprehensive array of nations and broaden your reach. This will significantly speed up the growth of your business, and this opens up a whole world of possibilities for your business and you.

There isn't a requirement for annual maintenance.

There is no annual or monthly maintenance charge after you've acquired your export and import codes, and the registration cannot be transferred and lasts for the entire duration of the existence of your business. Therefore, there is no requirement to schedule any reminders to ensure IEC Code filing and renewal.

Registration Based on PAN

The company's Permanent Account Number can generate this code. This means that registration is not dependent on the area of the business's location. Instead, an individual business might only have to register only once, and the registration is canceled or surrendered when the company dissolves.

Documents required for Import Export Code License

• The PAN Card of a person or company copy
• Copy of the electricity bill or rent agreement for the building
• The individual's Aadhar Card, voter's ID, or passport duplicate
• Self-addressed envelopes to allow registered mail to be delivered with the Import-Export Code (IEC) certificate.
• Refuse to accept cheques for current accounts at banks of companies or firms and individuals.

FAQs on the Import Export Code

1. Do you need to get an IEC code to import personal items for personal use or exports?

An IEC Code is not required for personal use exports or imports, and it is not necessary for personal use imports or exports. Import Export Code is only needed for corporate and commercial reasons.

2. Do you need to submit IEC returns?

In the case of importing or exporting, receiving or making payments when making payments or receiving them, making payments, the IEC code is mandatory. There is no post-registration compliance; therefore, there is no requirement to make returns for the Import Export Code in India.

3. What is the validity of the Import-Export Code, which is valid in India?

IEC registration is a one-time event, and the IEC code is only a once-only registration that lasts for the remainder of the person's life. This means that the IEC code doesn't need to be renewed.

4. What are situations in which the IEC code isn't needed?

• Departments of the government are in charge of export and import.
• Personal-use items are either exported or imported.
• Certain charitable NGOs that have been notified deal with exports and imports.

5. I run an export and import company; therefore, do I need an additional IEC Code for import-export activity?

There is no need to require any additional IEC codes to import or export, and there is just an IEC Code registration required for both Export and Import Activity in business.

Conclusion

In the current era of globalization, every business enterprise is looking for IEC Registration to expand their operations internationally. By obtaining an Import Export Code registration through appropriate compliances and procedures, entrepreneurs can grow their company to an international scale.