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IN1.6.1ÌýÌýÌýÌý Tax deduction at source (TDS)

Across the range of sections of the Act which deals with tax deduction ie, 192 and 194 to 194O, the Act lays down that tax must be deducted on the incomes alone, be it income for various contracts executed by contractors, commission or fees for services provided by professionals, technical fee payments, interest, rent, e-commerce operators etc.

There may be situations wherein identifying the appropriate section for tax deduction is ambiguous. In such cases, the nature of service provided, contractual terms and conditions, expertise required must be analysed and deduction section must not be based merely on nomenclature of the invoice.

The Act prescribes the limits for withholding tax and the rates for various payments to residents and non-residents. The rates and limits of TDS may be referred to in the link.

According to section 206AA of the Act, every assessee must furnish