What is financial year for TDS?
For instance, if your financial year is from 1 April 2020 to 31 March 2021, then it is known as FY 2020-21. The assessment year for the money earned during this period would begin after the financial year ends – that is from 1 April 2021 to 31 March 2022.
What is TDS and what are the TDS rates applicable for the FY 2020-21?
For the FY 2020-21, TDS on fixed deposits (FDs) is 7.5%. What are the TDS rates that are applicable to interest on securities? The TDS rate for interest on securities is 10%.
What is the TDS rate for FY 2018 19?
TDS rate chart for FY 2018-19
| Section | Nature of Payment for Domestic Transactions | Individual / HUF |
|---|---|---|
| TDS Rate (%) | ||
| 192 | Salaries (Annexure-I) | As per income tax slabs |
| 193 | Interest on Securities | 10 |
| 194A | Interest to other than Resident Senior Citizen | 10 |
How much TDS will be deducted?
Therefore, the final TDS to be deducted on your yearly income is Rs….How do I calculate TDS on my salary?
| Income Tax Slabs | TDS Deductions | Tax Payable |
|---|---|---|
| Up to Rs.2.5 lakhs | Nil | Nil |
| Rs.2.5 lakhs to Rs.5 lakhs | 10% of(Rs.5,00,00-Rs.2,50,00 | Rs.25,000 |
| Rs.5 lakhs to Rs.6.33 lakhs | 20% of(Rs.6,33,00-Rs.5,00,00) | Rs.26,600 |
What percentage of TDS is deducted?
Slabs for Deduction from Employees-
| Income | Tax Rate |
|---|---|
| Upto `2,50,000 | Nil. |
| `2,50,001 to `5,00,000 | 5% |
| `5,00,001 to `10,00,000 | `12,500 + 20% of Income exceeding `500,000. |
| Above `10,00,000 | `1,12,500 + 30% of Income exceeding of `10,00,000. |
What is the difference between previous year and assessment year?
The previous year is the year for which the data of activity and income is collected and compiled whereas the assessment year is the year in which Income Tax is calculated and collected. The previous year is either less than or equal to 12 months while the assessment year is always 12 months long.
What are tax slabs for 2019 20?
What are the Income Tax slab rates for AY 2019-20?
| Income | Tax |
|---|---|
| Up to Rs 2,50,000 | No tax |
| Rs 2,50,000 to Rs 5,00,000 | 5% on income more than Rs 2.5 lakh subject to a maximum of Rs 12,500 |
| Rs 500,000 to Rs 10,00, 000 | 20% on income exceeding Rs 500,000 subject to a maximum of Rs 1 lakh plus Rs 12,500 |
What is Section 194H?
Section 194H is for income tax deducted on any income by way of commission or brokerage, by any person responsible for paying to a resident. Individuals and Hindu Undivided Family who were covered under section 44AB are also required to deduct TDS.
How is TDS calculated?
The employer deducts TDS on salary at the employee’s ‘average rate’ of income tax. It will be computed as follows: Average Income tax rate = Income tax payable (calculated through slab rates) divided by employee’s estimated income for the financial year.