Section 194 LA : TDS on compensation on acquisition of certain immovable property

⁸[Payment of compensation on acquisition of certain immovable property⁹.

194LA. Any person responsible for paying to a resident any sum, being in the nature of compensation or the enhanced compensation¹⁰ or the consideration or the enhanced consideration on account of compulsory acquisition, under any law for the time being in force, of any immovable property (other than agricultural land), shall, at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax thereon:

Section 194I : TDS on Rent

⁷⁸[Rent.

⁷⁹194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to ⁸⁰[a resident] any income by way of rent⁸¹, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, ⁸²[deduct income-tax thereon at the rate of—

⁸³[(a)  two per cent for the use of any machinery or plant or equipment; and

(b)  ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:]]

Section 194 H : TDS on Commission or Bokerage

Commission or brokerage.

194H. Any person, not being an individual or a Hindu undivided family, who is responsible for paying, on or after the 1st day of June, 2001, to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of [ten] per cent :

Provided that no deduction shall be made under this section in a case where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee, does not exceed [five thousand rupees] :

[Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such commission or brokerage is credited or paid, shall be liable to deduct income-tax under this section:]

[Provided also that no deduction shall be made under this section on any commission or brokerage payable by Bharat Sanchar Nigam Limited or Mahanagar Telephone Nigam Limited to their public call office franchisees.]

Explanation.—For the purposes of this section,—

 (i)  "commission or brokerage" includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities;

(ii)  the expression "professional services" means services rendered by a person in the course of carrying on a legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or such other profession as is notified by the Board for the purposes of section 44AA;

(iii)  the expression "securities" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

(iv)  where any income is credited to any account, whether called "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.]

Q What is the meaning if Commission and how it is different from Discount ?

Section 194 J :TDS on Fees for Professional or Technical Services

Fees for professional or technical services.

^88a194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—

(a)  fees for professional services, or

(b)  fees for technical services [or]

Section 194 C : TDS on Payments to Contractors

Payments to contractors.

194C. (1) Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work(including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to—

Section 24 of Income Tax Act

Deductions from income from house property.

Section 24. Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:—

 (a) a sum equal to thirty per cent of the annual value;

 (b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :

Section 80 C : Questions and Answers

Q  Whether is is necessary that Investment under Section 80C of Income-tax Act, 1961  should be from the Income earned during the period?

Answer: Investment in National Savings Certificates, etc. for claiming deduction under section 80C need not be from income earned up to that period; it would be sufficient if total income of assessee for that year covers investment [Assessment year 1992-93] [In favour of assessee] [2009] 318 ITR 286 (ALL.) HIGH COURT OF ALLAHABAD Commissioner of Income-tax v. Pursottam Sa.

Section 80C of the Income Tax Act

 Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.

80C.  (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed  Rs 150000 w.e.f 01.4.2015 (Before this the limit was Rs 1,00,000)

Aslo Read  Section 80 C : Questions and Answers

Income Tax Return : Questions and Answers

Questions and Answers of Filing the Income Tax Return  

Q . What are the modes of filing return of income?

Return of income can be filed in paper mode or in e-filing mode. If return of income is filed through electronic mode, then the assessee has following two options:

(1)		E-filing using a Digital Signature
(2)		E-filing without a Digital Signature

Section 40A (3) : Dis allowance of Cash Payments

Sub Section 3 and 3A of Section 40 A are :-

(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.

(3A) Where an allowance has been made in the assessment for any year in respect of any liability incurred by the assessee for any expenditure and subsequently during any previous year (hereinafter referred to as subsequent year) the assessee makes payment in respect thereof, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, the payment so made shall be deemed to be the profits and gains of business or profession and accordingly chargeable to income-tax as income of the subsequent year if the payment or aggregate of payments made to a person in a day, exceeds twenty thousand rupees:

Section 40A (7): Disallowance of Gratuity

Section 40A (7): Disallowance of Gratuity :-

 (a) Subject to the provisions of clause (b), no deduction shall be allowed in respect of any provision whether called as such or by any other name) made by the assessee for the payment of gratuity to his employees on their retirement or on termination of their employment for any reason.

(b) Nothing in clause (a) shall apply in relation to any provision made by the assessee for the purpose of payment of a sum by way of any contribution towards an approved gratuity fund, or for the purpose of payment of any gratuity, that has become payable during the previous year.

Section 40A (9) of Income Tax Act 1961: Disallowance of Contribution

Section 40A(9)  of the Income Tax Act 1961:-

No deduction shall be allowed in respect of any sum paid by the assessee as an employer towards the setting up or formation of, or as contribution to, any fund, trust, company, association of persons, body of individuals, society registered under the Societies Registration Act, 1860 (21 of 1860), or other institution for any purpose, except where such sum is so paid, for the purposes and to the extent provided by or under clause (iv) [or clause (iva)] or clause (v) of sub-section (1) of section 36, or as required by or under any other law for the time being in force.

Section 40(a)(ia) of Income Tax Act 1961

Brief History of Section 40(a)(ia):-

The provision of section 40(a)(ia) of the IT Act, 1961 was brought on the Statute by the Finance Act, 2004, w.e.f. 1-4-2005.

- It provides for disallowance of any interest, commission or brokerage, rent, royalty, fees for professional services or fees for technical services payable to a resident, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for carrying out any work), on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted, or, after deduction, has not been paid during the P.Y., or in the subsequent year before the expiry of the time specified under section 200(1).