# payments
12 posts in `payments` tag
2025 Compliance Calendar: Important Business and Tax Due Dates for On-Time Submissions
To guarantee a seamless tax season, the 2025 Compliance Calendar gives people and companies important dates for filing taxes, submitting GST returns, and paying TDS. Businesses may stay out of trouble and maintain smooth operations by complying on schedule.
Reduced TDS Rates: Beneficial to Both People and Businesses
In order to lessen the tax burden on different types of payments, the TDS rates under Sections 194-IB, 194-DA, 194-G, 194-H, 194-M, and 194-O have recently changed. The TDS rate for insurance commissions, life insurance payouts, lottery commissions, brokerage fees, and rent payments will be lowered from 5% to 2% as of October 1, 2024, and April 1, 2025. A 2% tax under Section 194M will also be applied to payments made by non-auditable businesses to contractors and professionals. In addition, Section 194-O will apply a reduced TDS rate of 0.75% to e-commerce transactions. These adjustments aim to increase tax compliance across a range of industries and enhance liquidity for professionals, small enterprises, and individuals.
Key insights into how new income tax regulations can impact shareholders
For shareholders, the proposed increase in the corporate tax rate from 21% to 28% might have significant ramifications. Reduced capital gains, dividends, and corporate earnings might put stockholders at risk of higher taxes and slower market expansion. Higher taxes, though, may also lessen income disparity and boost public coffers. This blog examines the possible advantages and disadvantages of the new income tax laws for shareholders and offers advice on adjusting to these adjustments.
GST on Payment Aggregators: Impact on India’s Digital Payment Ecosystem
The blog explores the recent proposal put up by the GST Council to charge payment aggregators 18% GST for enabling small-value digital transactions up to ₹2,000 that are done using credit and debit cards. It investigates how this action can affect different parties, such as customers, merchants, and payment aggregators. The article also addresses the possibility of a shift in payment preferences in favor of options like UPI, which is not currently subject to these tax ramifications. It also emphasizes the background of the 2016 service tax exemption on small-value digital transactions, which was implemented to encourage the use of digital payments in India.
Section 194R of the Income Tax Act: A Complete Guide
The Income Tax Act's Section 194R, which addresses the tax deduction at source (TDS) on payments made to resident contractors or professionals, is covered in detail in this blog. It goes over the main points of the section, such as the tax rate, exemptions, threshold amount, and penalties for not complying. The blog also gives advice on how to ensure compliance and offers insights into the real-world applications of Section 194R.
New TDS Section 194T: What You Need to Know About Tax Deduction on Partner Payments
The Union Budget of 2024 introduced a new section in the Income Tax Act, 1961 - Section 194T. This provision mandates tax deduction at source (TDS) on certain payments made to partners of a firm, including salary, bonus, commission, interest, or remuneration. This blog provides a comprehensive guide to understanding the new TDS Section 194T, its implications, and compliance requirements. It covers the benefits and challenges of this provision, helping firms and partners navigate the new tax landscape.
Understanding Sections 194I and 194H of the Income Tax Act
This blog explores the details of Income Tax Act Sections 194I and 194H, clarifying the conditions for rent and commission payments that qualify for tax deduction at source (TDS). It addresses the following: application, rates, dates for deductions, deposit requirements, and the repercussions of noncompliance. It is imperative that taxpayers, business owners, and landlords who engage in commission transactions comprehend these parts to guarantee adherence to Indian tax regulations and prevent penalties. Continue reading to acquire a thorough grasp of TDS on commission and rent, along with useful examples and an overview of the main distinctions between the two parts.
CBIC Issues New Guidelines for GST Dues Recovery: Relief and Process
The Central Board of Indirect Taxes and Customs (CBIC) has issued new guidelines to streamline the recovery of Goods and Services Tax (GST) dues until the Goods and Services Tax Appellate Tribunal (GSTAT) becomes operational. Taxpayers can now make electronic payments for outstanding GST dues, offering a more convenient and efficient method. The CBIC also permits early GST recovery if justified in writing by the proper officer, allowing for quicker recovery in specific cases. Circular No. 187/19/2022-GST clarifies the treatment of statutory dues under GST law for taxpayers with proceedings finalized under the Insolvency and Bankruptcy Code (IBC). Additionally, GST will be applied to 1% of corporate guarantee fees annually. These guidelines aim to provide relief to businesses and ensure a smoother GST recovery process until the GSTAT is functional.
Detailed Guide on Form 26QB and Form 26QC: Key Differences and Procedures
This blog provides an in-depth comparison and detailed explanation of Form 26QB and Form 26QC, essential for TDS compliance in property and rental transactions. Learn about the applicability, procedures, and key differences between these forms to ensure proper tax deduction and reporting.
Comprehensive Guide to Section 194M TDS
This blog provides a detailed and descriptive overview of Section 194M of the Income Tax Act, 1961. It explains the key aspects of this section, including the types of payments covered, the threshold limit for TDS applicability, the TDS rates, and the compliance requirements for both payers and payees.
Section 194N: Cash Withdrawal TDS Explained
This blog provides an in-depth explanation of Section 194N of the Income Tax Act, which mandates TDS on cash withdrawals exceeding specified thresholds. Introduced to promote digital transactions and curb black money, Section 194N impacts individuals, businesses, and other entities. Learn about its applicability, thresholds, rates, calculation methods, operational mechanisms, and the implications for account holders. Stay informed and manage your cash withdrawals efficiently with a thorough understanding of this important tax provision.
Digital Transformation UPI Payments GST Ten States APNOKACA
You can access this feature through any UPI using Kotak Mahindra Bank. It's a significant move towards making GST payments more digital and straightforward.