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Are you Paying Rent more than 50,000 per month ?

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    1.        Applicability As per Section 194-IB, any Person being individual or HUF (who is not liable for audit under section 44AB) paying rent exceeding 50,000 per month of part of month, to any resident, is required to deduct TDS @5%. However, if the landlord is non-resident, then the liability to deduct TDS arises under section 195 of the income tax act.   2.        Manner of Deposition Tenant is required to file form 26QC (Challan-cum statement form) within 30 days from the date of credit of rent for the last month of previous year or the last month of tenancy in case of vacancy during the year, as the case may be.   Further, if the rent period covers more than one financial year, then in that case form 26QC needs to be submitted the end of each financial year.   3.        Issuance of TDS Certificate Tenant needs to issue a TDS Certificate (Form 16C...
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Duties and Responsibilities of Deductor

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  TDS (Tax Deducted at Source) is the Mechanism of Tracking the transactions among payer and payee. TDS is also one of the modes of collection of taxes. The concept of TDS envisages the principles of the "Pay as you Earn" scheme also known as withholding tax in many other countries.   The person responsible for deducting TDS is termed as Deductor/Payer and the person who receives the payment after-tax deduction is termed as Deductee/Payee.     As per the provision of Section 200, Deductor is responsible to perform some duties: 1) Obtain TAN (Tax Deduction Account Number) ·          TAN is a 10-digit alphanumeric number. The provisions of section 203A contain the requirement of obtaining TAN. ·          However, a person required to deduct tax under following sections can use PAN in place of TAN as such person is not required to obtain TAN. 194-IA Payment on tran...
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Location: Pitam Pura, New Delhi, Delhi, India
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Factors affecting Investment Decision for Individuals

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  The Investment decision relates to decision made by Investor’s with respect to the amount of funds to be deployed in the investment opportunities. However, there are certain aspects that influence the decision of the investor’s which are discussed below in detail: 1.     Security This starts with the safety of the capital invested. Investor is always keen on getting higher returns which in turn is related to ability of taking risks. There is a famous saying that “Higher the risk, higher the return” that is applicable to most of the investment avenues however one should always know that “Lower the risk, Higher are the chances of capital being secured “. Hence in order to understand the safety of investment, one need to understand the level of risks involved.   2.     Liquidity Liquidity means how easily and quickly one can liquidate the investments. The degree of ease could be different across different categories. Certain investment opti...
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Location: Pitam Pura, New Delhi, Delhi, India
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