action points on loans and advances pptex

total business view on loans ppt

1. TDS provision releated to banks CA Rajat Powar

2. In this world nothing can be said to be certain , except death and taxes Benjamin Franklin

3. Total Bill ( Rs ) GST@18% Total TDS@10% Payment to be made 1,00,000 18,000 1,18,000 10,000 1,08,000

4. Major Sections of TDS

5. Section Basic Exemption Limit Rate of TDS 194A Rs 40,000 Senior Citizen- Rs 50,000 10% 194H 15,000 5% 194C Per Bill - Rs 15,000 Aggregate – Rs 40,000 Individual/HUF - 1%. Others - 2% 194J 30,000 10% 194I 2,40,000 Machinery -2% Land or Building-10% 194N 1 Cr 2% Non PAN Cases- TDS @20%

6. Exemptions Rs 40,000/Rs 50,000 Payment made to following  Bank/ Co-operative society engaged in banking business financial corporation LIC UTI Insurers Any Short or excess deduction can be adjusted at any time during the financial year. 194A (Interest)

7. Carrying out any work Wide ambit e.g advertising, transport/courier , catering, printing of stationery TDS only on labour not on material No deduction when payment to person owning less than 10 vehicles 194C (Contractor Payment)

8. TDS to be made for cash payments in excess of 1CR TDS to be made @ 2% Exceptions Payment made to Government Banks Business Corespondents (Pigmy agents) ATM operator 194N (Cash Payments)

9. Application for non deduction of tax to be made by the deductee . Application is valid for such a period specified in certificate( Till the end of FY) OR till it is cancelled. Certificate to be issued in the name of deductor and shall be valied only in respect of that deductor . Sec 197: Certificate for non deduction from AO

10. Form 15G,15H Declaration to be made that tax on estimated total income is nil Applicable for Interest, rent Not applicable when total payment exceeds Rs 2,50,000 Declaration to be numbered sequentially To be filled in TDS return before 7 th of next month. Sec 197A:Declaration for non deduction

11. Consequences of non deduction

12. Non payment of TDS Deducted Rigorous imprisonment 3 months to 7 years. Prosecution

13. Thank You