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A Guide to UAN Registration for Indian Employees

A Guide to UAN Registration for Indian Employees The Employees' Provident Fund (EPF) is a social security scheme in India that helps employees save for retirement. Every member of the EPF has a unique 12-digit Universal Account Number (UAN), which acts as an umbrella for all their EPF accounts throughout their career. This simplifies the process of managing their contributions and claims across different employers. Understanding UAN Registration UAN registration is the initial step towards managing your EPF account online. It assigns a unique identifier that remains constant even when you change jobs. This eliminates the need to create separate PF accounts for each employer. Who Gets a UAN? New Employees: When you join an organization with 20 or more employees for the first time, your employer initiates the UAN registration process. Existing Employees: If you already have a UAN from a previous job, you should inform your new employer to avoid duplicate registrations. How to Find Your UAN Through Your Employer: Most employers provide your UAN on your payslip or during the onboarding process. UAN Member Portal: You can retrieve it yourself using the UAN member portal: Visit the UAN Member Portal: https://unifiedportal-mem.epfindia.gov.in/ Click on "Know Your UAN" Select your state and EPFO office from the dropdowns. Enter your PF number/member ID, name, date of birth, mobile number, and captcha code. Click on "Get Authorization Pin" to receive a one-time password (OTP) on your registered mobile number. Enter the OTP and click on "Validate OTP and Get UAN" to receive your UAN via SMS. Activating Your UAN Gain access to the online EPFO services like checking your account balance, tracking contributions, and submitting claims: Visit the EPFO website: https://www.epfindia.gov.in/ Click on "Our Services" and then select "For Employees" Under "Services," choose "Member UAN/Online Services" which redirects you to the UAN Member Portal. Enter your UAN, PF member ID (if available), and mobile number. Enter the captcha code and click on "Get Authorization PIN" to receive an OTP on your phone. Tick the "I Agree" checkbox and enter the OTP to proceed. Click on "Validate OTP and Activate UAN." Upon successful activation, you'll receive a password on your registered mobile number for future logins. Documents for UAN Activation While activating your UAN online doesn't require any physical documents, it's recommended to have the following for verification: Aadhaar card (highly recommended) PAN card Bank account details and IFSC code Benefits of UAN Registration Centralized Management: UAN simplifies EPF account management by consolidating all your contributions under one roof, irrespective of previous employers. Portability: When you switch jobs, your UAN travels with you, eliminating the need to transfer funds between different PF accounts. Online Access: UAN activation unlocks a plethora of online services offered by the EPFO portal, allowing you to conveniently manage your EPF account anytime, anywhere. Transparency: You gain real-time insights into your EPF contributions and account balance, ensuring control over your retirement savings. Additional Tips Download Your UAN Card: After activating your UAN, download a soft copy of your UAN card for reference from the EPFO member portal. Link Your Aadhaar: Linking your Aadhaar card to your UAN expedites various EPF-related processes and makes it easier to claim benefits. Resetting Your Password: If you forget your UAN login password, reset it on the UAN member portal using your UAN and registered mobile number. Conclusion UAN registration is a crucial step towards securing your retirement savings. By understanding the process and its benefits, you can take charge of your EPF account and ensure a financially secure future.

08-08-2024

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Demystifying UAN: Your Gateway to Streamlined EPF Management

Demystifying UAN: Your Gateway to Streamlined EPF Management The Employees' Provident Fund (EPF) is a social security scheme in India that safeguards your retirement savings. Every member of the EPF has a unique identifier – the Universal Account Number (UAN). This 12-digit number acts as an umbrella for all your EPF accounts throughout your career, simplifying the management of your contributions and claims across different employers. What is a UAN? A UAN is essentially a single identification number assigned to you by the Employees' Provident Fund Organisation (EPFO) under the Ministry of Employment and Labor. This unique number remains constant throughout your professional life, regardless of how many times you change jobs. Each new employer assigns you a new member ID within their organization, but your UAN remains the same, linking all your PF accounts under one roof. Benefits of Having a UAN The UAN system offers a multitude of advantages for both employees and employers: Centralized Management: With a UAN, you gain a consolidated view of all your EPF contributions under a single account. This eliminates the need to track multiple PF accounts associated with previous employers, making it easier to monitor your retirement savings. Portability: When you switch jobs, your UAN travels with you. You simply need to share your UAN with your new employer to seamlessly transfer your existing PF balance to your new account. This eliminates the tedious and time-consuming process of manual PF transfers. Transparency and Online Access: UAN activation unlocks a world of online services offered by the EPFO portal. You can conveniently access your EPF account anytime, anywhere, to check your balance, track contributions, submit claims, and update your KYC details. Reduced Employer Involvement: UAN streamlines the PF transfer process, minimizing employer involvement. Once your KYC verification is complete, your previous employer's PF balance gets transferred to your new account automatically. Employer Authentication: Employers can utilize the UAN system to verify employee details by checking their KYC documents. This helps ensure the legitimacy of employee PF accounts and contributions. Reduced Risk of PF Withholding: Since your UAN provides real-time insights into your PF contributions, employers cannot deduct or withhold your rightful PF amount. How to Find and Activate Your UAN There are two ways to locate your UAN: Through Your Employer: Most employers provide your UAN on your payslip or during the onboarding process. UAN Member Portal: If you can't get it from your employer, you can retrieve it yourself using the UAN member portal: Visit the UAN Member Portal: https://unifiedportal-mem.epfindia.gov.in/ Click on "Know Your UAN" Select your state and EPFO office from the dropdowns. Enter your PF number/member ID, name, date of birth, mobile number, and captcha code. Click on "Get Authorization Pin" to receive a one-time password (OTP) on your registered mobile number. Enter the OTP and click on "Validate OTP and Get UAN" to receive your UAN via SMS. Once you have your UAN, proceed with getting it activated to unlock the online EPFO services for you: Visit the EPFO website: https://www.epfindia.gov.in/ Click on "Our Services" and then select "For Employees" Under "Services," choose "Member UAN/Online Services" which redirects you to the UAN Member Portal. Enter your UAN, PF member ID (if available), and mobile number. Enter the captcha code and click on "Get Authorization PIN" to receive an OTP on your phone. Tick the "I Agree" checkbox and enter the OTP to proceed. Click on "Validate OTP and Activate UAN." Upon successful activation, you'll receive a password on your registered mobile number for future logins.

08-08-2024

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Tracking Your EPF Activity: A Guide to Downloading Your EPF Passbook

Tracking Your EPF Activity: A Guide to Downloading Your EPF Passbook The Employees' Provident Fund Organization (EPFO) offers a convenient online service for accessing your EPF passbook. This digital version mirrors a traditional bank passbook, providing a detailed record of all transactions associated with your EPF account. With the EPF e-passbook, you can effortlessly view, download, and even print your EPF statement, keeping track of your contributions and interest earned. What’s the EPF Passbook The EPF passbook serves as a comprehensive record of all contributions made to your Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) accounts. It meticulously details your monthly contributions, both from your own share and your employer's share. Any interest accrued on your account balance is also reflected in the passbook, providing a clear picture of your overall EPF activity. Essential Information Included in the EPF Passbook The EPF passbook offers a wealth of information, empowering you to stay informed about your EPF account. Here's a breakdown of some key details you'll find: Employer Details: The name of your company or employer, along with their establishment ID, is clearly displayed. EPFO Office Information: The location and type of your EPFO office are included for reference. Contribution Details: You'll find a breakdown of both your and your employer's monthly contributions to your EPF account. Interest Earned: Any interest credited to your account is reflected in the passbook, allowing you to track your earnings. UAN Information: Your Universal Account Number (UAN), a crucial identifier for EPFO transactions and passbook access, is prominently displayed. Employee Details: Your date of birth and date of joining your current employment are listed. Account Balances: The opening balance, current balance, and total interest earned on your account are all readily available. Voluntary Provident Fund (VPF) Contributions: The passbook also records any Voluntary Provident Fund (VPF) contributions you may have made. VPF allows you to contribute additional funds towards your retirement savings beyond the mandatory EPF contributions. Yearly Summary: For each financial year, the passbook provides a summary of your total contributions, interest earned, and closing balance. This closing balance is carried forward as the opening balance for the next financial year. How to Download? The EPFO website offers a user-friendly interface for downloading your EPF passbook. Here's a straightforward guide to follow: Navigate to the EPFO Website: Visit the official EPFO website at https://www.epfindia.gov.in/. Locate the e-Passbook Option: Look for the "e-Passbook" option, often displayed on the right side of the screen. Click on this option to proceed. Login with UAN Credentials: On the new webpage, enter your UAN number, password, and the displayed captcha code for verification. Select Member ID: If you have multiple EPF accounts linked to your UAN, the page will list all your member IDs. Choose the specific member ID for the account whose passbook you want to download. View and Download Passbook: Once you select the member ID, you can then download the passbook in PDF format for future reference or print a physical copy for your records. Benefits Accessibility: It eliminates the need for physical visits to EPFO offices and saves valuable time. Convenience: Effortlessly view, download, and print your EPF statement, allowing you to maintain a personal record of your contributions and track your retirement savings progress. Accuracy Verification: The e-passbook serves as a reliable source for verifying your EPF account details and identifying any discrepancies. Retirement Planning: By reviewing your contributions and accumulated interest, you can make informed decisions about your future financial needs. Job Transitions: When switching jobs, your e-passbook can be easily updated through the EPFO portal.

08-08-2024

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Invest Securely and Earn Competitively: Post Office Savings Schemes in India

Invest Securely and Earn Competitively: Post Office Savings Schemes in India One of the most significant advantages of post office savings schemes is their sovereign guarantee. Backed by the Government of India (GOI), these schemes often offer a high degree of security, making them a safe haven for your hard-earned money. Additionally, several schemes come with tax benefits under Section 80C of the Income Tax Act that allows you to save on taxes while growing your wealth. Post Office Saving Schemes and their Key Features Post Office Savings Account: Functioning similarly to a regular bank savings account, this scheme offers easy deposits and withdrawals with a minimal balance requirement. It caters to individuals, including minors, and the interest earned on deposits up to Rs. 10,000 is tax-exempt. National Savings Recurring Deposit Account (RD): This scheme is ideal for inculcating a regular savings habit. You can start with a minimum investment of Rs. 100 per month in multiples of Rs. 10. This scheme is suitable for both adults and minors, promoting long-term financial planning. National Savings Time Deposit Account (TD): This scheme offers fixed interest rates for a predetermined tenure. The investment period can range anywhere between 1 to 5 years, with higher interest rates offered for longer durations. Deposits made in the 5-year time deposit qualify for tax deduction under Section 80C. National Savings Monthly Income Account (MIS): This scheme caters to individuals seeking a steady stream of income. You can invest a lump sum amount and receive monthly interest pay-outs. While the interest earned is taxable, there are no tax deductions on the deposits. Senior Citizen Savings Scheme (SCSS): This scheme is specifically designed for senior citizens aged above 60 years. It offers attractive interest rates and multiple tax benefits under Section 80C. The scheme also allows for a maximum investment of Rs. 30 lakh and has a maturity period of 5 years with an option for extension for 3 more years. Public Provident Fund Account (PPF): This is a long-term investment scheme with a 15-year maturity period. It provides attractive interest rates compounded annually and tax benefits on investments under Section 80C. Additionally, the interest earned is tax-free on maturity. National Savings Certificates (NSC): This scheme offers fixed interest rates compounded annually. The maturity period is fixed, and the interest is payable at maturity. Investments in NSC qualify for tax exemption under Section 80C. Kisan Vikas Patra (KVP): This certificate scheme is a good option for investors seeking a one-time investment with a shorter maturity period. It offers attractive interest rates compounded annually, and the maturity period is approximately 9 years and 10 months. While the interest earned is taxable, the amount received on maturity is tax-free. Sukanya Samriddhi Account (SSA): This government-backed scheme is specifically designed to promote girl child savings. It offers high-interest rates and tax benefits. The account can be opened for a girl child below 10 years of age by her guardian. Investing in Post Office Savings Schemes: Key Advantages Simple and Accessible Safe and Secure Competitive Interest Rates Tax Benefits Long-Term Investment Options Variety of Options Liquidity Government Backing Who Can Invest in Post Office Savings Schemes? Post office savings schemes are generally open to all Indian residents, including: Adults Minors (with a guardian's help) Senior citizens Documents Required to Open an Account Completed application form KYC documents (PAN card, Aadhaar card, Passport, Voter ID, etc.) Proof of address Photograph Conclusion Post office savings schemes offer all the citizens a secure and convenient way to save and grow your money. With attractive interest rates, tax benefits, and government backing, these schemes are a valuable tool for financial planning.

08-08-2024

Tax

Understanding Direct vs. Indirect Taxes in India

Understanding Direct vs. Indirect Taxes in India In India, every taxpayer contributes to the government through various tax structures. To navigate these systems effectively, it's crucial to understand the two main categories: direct taxes and indirect taxes. Direct Taxes vs. Indirect Taxes: A Breakdown The fundamental difference is that someone collects the tax and distributes the burden. Direct Tax: This tax is levied directly on an individual's or company's income or profits. The taxpayer pays it straight to the government and cannot shift this responsibility to someone else. Indirect Tax: An indirect tax is levied on goods and services, but taxpayers pay it to the government through an intermediary, typically a seller or service provider. This intermediary then collects the tax and forwards it to the government. Key Differences between Direct and Indirect Taxes A table summarizing the key differences: Feature Direct Tax Indirect Tax Basis of Imposition Income or profit of a taxpayer Goods and services Payment Channel Directly to the government Through an intermediary (seller/service provider) Payer Individuals and businesses End consumers Tax Rate Varies based on income/profit levels (progressive) Generally the same for all taxpayers (regressive) Transferability Cannot be transferred to another person Can be passed on to the consumer through increased prices Types of Direct and Indirect Taxes in India Direct Taxes Income Tax: Paid annually based on income earned in a financial year. Wealth Tax: Levied on the value of assets held by individuals, companies, or Hindu Undivided Families (HUFs). (Abolished in India in 2015) Corporation Tax: Paid by companies on their income earned in a financial year. Rate may vary based on the company's incorporation status (domestic or foreign). Capital Gains Tax: Taxed on profits earned from the sale of property (residential property, stocks, etc.). Indirect Taxes: (Prior to GST) Sales Tax: Levied on the sale of movable goods. Service Tax: Paid by service providers (except those in the negative list) to the government. Value Added Tax (VAT): A consumption tax added to a product at each stage of production or distribution. (Replaced by GST in India) Benefits of Direct vs. Indirect Taxes Direct Taxes: High inflation can be controlled by the government through increasing tax rates. This helps to lower demand for goods and services, which in turn curbs inflation. Tax slabs and exemptions help create a fair balance between social and economic factors. This is done by ensuring that individuals with lower income pay less tax. Indirect Taxes: Equal Contribution: Everyone contributes to the state, including those exempt from direct taxes. Indirect taxes are included in the price of goods, making them difficult to avoid unless someone stops buying taxed items completely. Drawbacks of Direct and Indirect Taxes Direct Taxes: Tax Evasion: Some people may try to avoid paying taxes or reduce their tax bill by breaking the law. Burdensome: Direct taxes are often paid in lump sums annually, which can be a financial strain. Additionally, the documentation process can be time-consuming. Indirect Taxes: Regressive tax rates burden low-income earners more because they pay the same rate as higher-income earners. Increased Product Prices: Indirect taxes are added to the cost of goods and services, making them more expensive for consumers. The GST Advantage India's Goods and Services Tax (GST) replaced the earlier indirect tax system, aiming to streamline the taxation process. GST combines multiple taxes into a single tax, simplifying tax compliance for businesses. It also helps lessen the cost of goods and services by eliminating double taxation. This makes it easier for businesses to understand and follow tax regulations. Additionally, it streamlines the tax process and reduces administrative burden for businesses.

07-08-2024

Tax

Understanding Debit Notes, Credit Notes, and Revised Invoices under GST

Understanding Debit Notes, Credit Notes, and Revised Invoices under GST Ensuring Accuracy in GST Invoicing In India, businesses must use the same invoices for GST to prevent tax fraud and collect taxes more effectively. Businesses need to send B2B invoices to a central GST repository when filing GST returns. This system helps with organization. The buyer's return with purchase info (GSTR-2) uses the supplier's invoice details automatically, minimizing the possibility of fraudulent practices in B2B transactions. However, genuine situations might require a business to modify an already issued invoice. In such cases, the supplier can use debit notes or credit notes to revise the invoice value. Debit Note vs. Credit Note: Understanding the Difference The key distinction between debit notes and credit notes lies in their purpose: · Credit Note: Issued by a seller to a buyer to acknowledge a reduction in the invoice amount. This typically happens due to product returns, discounts offered after the sale, or overcharges. A credit note issued under GST requires the following conditions: A registered recipient has received a supply of goods/services. o A tax invoice for the supply was previously issued. The amount of tax on the invoice is more than what needs to be paid. · Debit Note: Issued by a buyer to the seller to inform them of an increase in the invoice amount. This could be due to additional product charges, undercharges in the original invoice, or late fees. A debit note issued under GST requires the following conditions: A registered recipient has received a supply of goods/services. o A tax invoice for the supply was previously issued. The tax amount on the invoice is less than what is actually owed. Impact on Accounts: · Debit Note: Reduces the seller's credit balance in the buyer's account. This signifies a lower amount payable by the buyer to settle the debt. · Credit Note: Reduces the buyer's debit balance in the seller's account. This indicates a lower amount receivable by the seller from the buyer. Revised Invoices under GST: During the switch to GST, businesses with current taxable registrations had to get provisional registration under GST. After GST implementation and review, they received permanent GST registration certificates. Between getting GST and permanent registration, businesses had to update invoices within 30 days of getting the GST certificate. This revision involved adding the GST number and HSN/SAC code to the invoice. This ensured proper credit of input tax for the buyer and accurate tax liability calculation. In Summary: · Debit notes and credit notes are crucial tools for revising invoice amounts under GST. · Understand the purpose of each document to ensure proper use. · Revised invoices are necessary during the GST transition phase to comply with new tax requirements. By following these guidelines, businesses can maintain accurate invoice records and ensure smooth GST compliance.

07-08-2024

Tax

Income Tax Slabs in India for FY 2023-24 (AY 2024-25)

Income Tax Slabs in India for FY 2023-24 (AY 2024-25) This article explains income tax slabs in India for 2023-24 (AY 2024-25). You have two options for filing your taxes: the new or the old tax regime. New Tax Regime The new tax regime is the default option unless you choose the old one. It offers lower tax rates but eliminates certain deductions and exemptions. Income Tax Slabs for Individuals (New Regime): Income Slab Tax Rate Up to Rs. 3,00,000 Nil Rs. 3,00,001 - Rs. 6,00,000 5% Rs. 6,00,001 - Rs. 9,00,000 10% Rs. 9,00,001 - Rs. 12,00,000 15% Rs. 12,00,001 - Rs. 15,00,000 20% Above Rs. 15,00,000 30% Old Tax Regime The old tax regime allows for various deductions and exemptions, but it generally has higher tax rates. Income Tax Slabs for Individuals (Old Regime): Age Group Income Slab Tax Rate Up to 60 years Up to Rs. 2,50,000 Nil 60-80 years Up to Rs. 3,00,000 Nil 80 years and above Up to Rs. 5,00,000 Nil All ages Rs. 2,50,001 - Rs. 5,00,000 5% All ages Rs. 5,00,001 - Rs. 10,00,000 20% All ages Above Rs. 10,00,000 30% Tax Slabs for Domestic Companies: Company Type Tax Rate (Old Regime) Tax Rate (New Regime) Under Section 115BAB (registered after Oct 1, 2019 & manufacturing before Mar 31, 2023) - 15% Under Section 115BAA (no deductions) - 22% Under Section 115BA (registered after Mar 1, 2016 & manufacturing) 25% 25% Turnover less than Rs. 400 crore 25% 25% Others 30% 30% Surcharge for Companies: · 7% of income tax for income exceeding Rs. 1 crore. · 12% of income tax for income exceeding Rs. 10 crore. · 10% of income tax for companies under Section 115BAA & 115BAB. Additional Health & Education Cess Rate: 4% Tax Rate for Partnership Firms/LLPs: 30% (surcharge applicable for income above Rs. 1 crore, health and education cess also applies). Choosing Between New and Old Regimes Carefully consider the deductions and exemptions you are eligible for before choosing a tax regime. Changes Due to Budget 2023 The Budget 2023 increased the basic exemption limit and introduced a standard deduction for salaried individuals and pensioners under the new tax regime. It also reduced the highest surcharge rate and increased the rebate under Section 87A.

07-08-2024

Tax

GST Registration in India

GST Registration in India What is GST? GST was introduced in 2017; the Goods and Services Tax (GST) is a unified tax system in India. It replaced several indirect taxes, streamlining the process and reducing the burden on businesses. Who Needs to Register for GST? · Businesses with an annual turnover exceeding Rs. 40 lakh (Rs. 10 lakh for some north eastern and hilly states) must register for GST. · Even if your turnover is below the limit, registration might be necessary: o Interstate supplies (selling across states) o Selling through e-commerce platforms o Opting for the composition scheme (a simplified GST compliance method) o Having a branch in another state Types of GST: · SGST (State GST): Tax on intra-state (within the state) supplies of goods and services. · CGST (Central GST): Tax levied by the central government on intra-state supplies. · IGST (Integrated GST): Tax applicable on interstate supplies of goods and services. · UTGST (Union Territory GST): Tax levied on supplies in Union Territories. Benefits of GST Registration: · Legality: Avoid penalties for non-compliance. · Input Tax Credit (ITC): Claim credit for GST paid on purchases, reducing your overall tax liability. · Wider Market Access: Easier to deal with other GST-registered businesses. · Credibility: Improves your business image and attracts potential customers. Documents Required for GST Registration: The documents needed vary depending on the business type (sole proprietorship, company, etc.). · PAN card · Aadhaar card · Address proof · Bank account details · Business details (proof of registration, etc.) How to Register for GST? The registration process is mostly online through the GST portal. You need to fill out forms and submit the required documents. Deregistration of GST: Businesses can deregister under certain circumstances · Turnover falling below a threshold · Discontinued business operations · A Change in the business structure How to Apply for Deregistration? Use Form GST REG-29 to apply for cancellation. It involves details about your inventory and liabilities. An officer will check your application and issue a cancellation order within a month. Important Points: · GST registration is compulsory for businesses exceeding the turnover limit or involved in interstate supplies. · Make an Estimate of the benefits and likely impact on your business before registering. · Consult a tax advisor GST registration can be beneficial for businesses, offering tax benefits and compliance.

07-08-2024

Tax

Understanding TDS for Professional and Technical Services (Section 194J)

Understanding TDS for Professional and Technical Services (Section 194J) Section 194J of the Income Tax Act, 1961 deals with Tax Deducted at Source (TDS) for professional or technical fees paid to residents. This article explains the key points of Section 194J, including recent amendments and who is liable to deduct TDS. Recent Amendments (effective April 1, 2020) · TDS Rates: o Specialized (non-skilled) services: 2% o All other covered services (including technical services): 10% · Applicability Threshold: Businesses and professions that made over Rs 1 crore or Rs 50 lakh in the previous year must deduct TDS. Who Must Deduct TDS (the Deductor) Anyone (except individuals/Hindu Undivided Families) making the following payments to a resident (except employees or Hindu Undivided Families) is liable to deduct TDS under Section 194J: · Fees for professional or technical services · Director remuneration (excluding exempt payments under Section 192 or royalties) · Non-compete fees TDS Rates · Royalties for films: 10% · Technical services (excluding film royalties): 2% (effective April 1, 2020) · Call center operations: 2% (effective June 1, 2017) · No PAN provided: 20% · Professional services: 10% When to Deduct TDS TDS applies to payments exceeding Rs 30,000 in a financial year for the following: · Professional services fees · Technical services fees · Non-compete fees · Royalties What are Professional Services? Professional services cover different areas such as medicine, engineering, architecture, law, accounting, and interior design. Professional services include medicine, engineering, architecture, law, accounting, and interior design. The Income Tax Act includes services from film writers, company secretaries, and authorized representatives. Athletes, referees, sports journalists, and physiotherapists are also considered to provide professional services. What are Technical Services? Technical services refer to consulting, technological, or managerial services provided by an individual. Manual labor involved in assembly, mining, and manufacturing doesn't qualify as technical services. What are Non-Compete Fees? Non-compete fees are payments to prevent someone from using patents, licenses, trademarks, or know-how for business purposes for TDS. What are Royalties? Royalties are payments for: · Transfer of ownership rights for patents, inventions, designs, or trademarks · Use of patents, inventions, designs, etc. · Sharing knowledge about inventions, copyrights, or similar rights · Use of equipment for agricultural, research, or commercial purposes · Transferring rights to published works, documentaries, or videotapes for broadcasting Specific Cases where TDS Applies Based on departmental circulars and case law, TDS may also apply to: · Medical services provided by hospitals · Professional fees paid to film artists by publicity companies · Payments to management consulting or HR firms · Registrar fees paid by companies for data exchange Consequences of Non-Compliance If you don't deduct TDS, you may not be able to claim up to 30% of the expense for tax purposes.. · Interest: Penalties are levied for non-deduction or late deposit of TDS: o Non-deduction: 1% per month from the due date till deduction. o Late deposit: 1.5% per month from the deduction date till deposit. Understanding Section 194J is crucial for businesses and professionals dealing with payments for specified services. Get advice from a tax advisor for help with complicated taxes.

07-08-2024