Is TDS applicable for outside India?
TDS is applicable on foreign payments or charges as per section 195 of the Income Tax Act. Commission paid to overseas agents that do not have PEs in India and carry out all functions outside India, will not attract TDS. Commission paid to overseas agents situated wholly abroad, is not taxable in India.
Is TDS deducted on foreign payment?
Any amount sent abroad to buy foreign tour packages, and every other foreign remittance made above ₹7 lakh, will attract a tax-collected-at source (TCS) beginning 1 October unless tax is already deducted at source (TDS) on that amount.
What is the TDS rate applicable for payment of professional fee?
An individual should deduct TDS at the rate of 10% when the following payments are made to a resident, in a fiscal year (higher than Rs. 30,000): Amount charged as professional services fee.
What is the TDS rate for foreign remittance?
TDS Rates FY 2021-22 (AY 2022-23) for Non-residents
| Section | For Payment of | TDS Rate |
|---|---|---|
| 195 | Other Payments to Foreign Company | |
| (a) LTCG referred to in Section 112(1)(c)(iii) | 10% | |
| (b) LTCG referred to in Section 112A | 10% | |
| (c) STCG under Section 111A | 15% |
What is Section 194A?
Section 194A deals with deduction of TDS on interest other than interest on securities like Interest on Fixed Deposits,Interest on Loans and Advances other than banks.
What is Section 195 of IT Act?
Section 195 – TDS on Non-Residents. The section 195 of the Income Tax Act, 1961 is all about the Tax Deducted at Source (TDS) for non-resident citizens of India. This section focuses on tax deductions and tax rates that are involved in all business transactions of a non-resident citizen of India on a day-to-day basis.
Is there any tax for outward remittance?
The Finance Minister, in the last financial year had introduced a Tax Collected at Source (TCS) of 5% on all outward remittances above ₹7 lakh. The Finance Minister, in the last financial year had introduced a Tax Collected at Source (TCS) of 5% on all outward remittances above ₹7 lakh.
Is money sent overseas taxable?
Since 2013, US citizens sending money overseas are supposed to pay the tax on the entire amount, if it exceeds $14,000 per person, in a year. You are not liable to pay tax on the amount now as the number is below $14,000.
How do I claim professional fees on my taxes?
If you belong to a union or professional organization, you can deduct certain types of union dues or professional membership fees from your income tax filings. The amount of union dues that you can claim is shown in box 44 of your T4 slips, or on your receipts and includes any GST/HST you paid.
How can I pay TDS for professional fees online?
Following is the procedure that a deductor needs to follow:
- Login TIN NSDL Portal. To pay TDS online visit the website of income tax department.
- Select the Relevant Challan.
- Fill in the Challan Details.
- Confirm Challan Details.
- Make TDS Payment.
- Online Verification.
Who is liable to deduct TDS on professional fees?
Every person, who is making a payment in the nature of fees for professional or technical services is liable to deduct tax at source with the following exceptions: In case of an individual or HUF carrying on business: Where his turnover does not exceed Rs. 1 crore during the previous financial year..
Is there any tax on foreign remittance?