Income Tax (Direct tax)

Withholding taxes on payments other than salaries

Under the Act, a person making certain specified payments such as salary, contractual payments, rent, interest, professional or technical fees, commission, payments to non-residents, etc. is required to withhold tax at source from such payments and comply with the associated requirements in respect of deposit of taxes in the Government treasury in the prescribed manner, issue of tax credit cerficates and filing withholding tax returns. The rationale of withholding tax is to provide a mechanism for tax authorities to collect tax at the source of income, and also to expand the tax base.

Failure to comply with the prescribed withholding requirements could result in the levy of penal interest, penalty and prosecution under the Act, in addition to the liability to make up for the taxes not withheld/deposited.

The following chart depicts the withholding tax provisions prescribed under the act:

Some of the direct tax services provided by us include :

• Advising on Income Tax Planning of Corporates.
• Advising & reviewing of all necessary tax withholding responsibilities.
• Advising all financial subjects which are of your interest and keeping you updated on the new amendments, circulars, notifications & judgments.
• Verification of all payments to vendors for the purposes of determination of correct application of rates and category for deduction of withholding taxes.
• Computation of monthly TDS on the basis of above.
• Monthly tax reconciliation of the TDS due and deducted.
• Preparation and deposit of Monthly challans on or before the statutory due dates.
• Filing of quarterly E-TDS Returns.
• Filing annual Income Tax return.

CERTIFICATION WORK

• Issuance of Chartered Accountant certificates u/s 195 required for the Overseas Remittances purposes from time to time.