itr - Blog - Global Risk Community2024-03-28T21:32:09Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/itrGazetted Officer: Aspects of getting documents attestedhttps://globalriskcommunity.com/profiles/blogs/gazetted-officer-aspects-of-getting-documents-attested2019-05-07T10:30:00.000Z2019-05-07T10:30:00.000ZJatin Kapoorhttps://globalriskcommunity.com/members/JatinKapoor<div><p><span style="font-size:14pt;"><strong>Gazetted Officer</strong></span></p>
<p>A senior government official whose appointment is published in the Gazette of India or any State Government Gazette, he/she is called Gazetted. Their authority of using an official stamp comes from the President of India or the Governors of States. To put it simply, they represent the Indian State and the President.</p>
<p>Important identification & certification documents, to avail various government and banking facilities, require attestation by a gazetted officer, first.</p>
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<p> </p>
<p><span style="font-size:14pt;"><strong>Who is a Gazetted Officer</strong></span></p>
<p>Basically, a Gazetted Officer belongs to either of the below categories:</p>
<ol>
<li><strong>Group A or Class I (Gazetted and Executive officers):</strong></li>
</ol>
<p>This class consists of the highest class of government servants. They are ranked from level 1 to 10 in the Civilian and Defence Pay Matrices. Include:</p>
<ul>
<li>Officers of Indian Armed forces,</li>
<li>Magistrates in Judicial services and above,</li>
<li>Central and State service men (Doctors, Engineers, Drug Controller),</li>
<li>Employees of central and state government universities (Vice Chancellors, Principals, Assistant Registrars, Faculty members, etc.),</li>
<li>Scientists working in a government-funded research organization (such as DRDO etc.),</li>
<li>Central or state government employees who have Group A service Rules (IAS, IES, DIG, DCP, ASP, DGP, JCP, IB, SDPO, etc.),</li>
<li>All Police officers ranking above circle inspector.</li>
</ul>
<ol>
<li><strong>Group B or Class II (Gazetted officers):</strong></li>
</ol>
<ul>
<li>Section Officers,</li>
<li>Assistant Executive Engineers,</li>
<li>Block Development Officers (BDO),</li>
<li>Tehsildars,</li>
<li>Junior Doctors working in Government Hospitals,</li>
<li>Magistrates,</li>
<li>Headmasters of Government High Schools,</li>
<li>2nd Lieutenant,</li>
<li>Lecturers of Government colleges,</li>
<li>Income Tax and Revenue officials.</li>
</ul>
<div id="om-cyleseddvagssksuvew3-holder"> </div>
<p>Post-retirement they cease to be Gazetted officers, with all powers to attest divested.</p>
<p> </p>
<p><span style="font-size:14pt;"><strong>Gazetted Officer Attestation</strong></span></p>
<p>The Gazetted Officer who puts the stamp, along with this authority, becomes responsible to check and verify that the person actually exists. The purpose of the Attestation is to make sure that the person is legally authentic.</p>
<p>An Official can not attest a document, without identifying the person. Therefore, they may keep a copy of your document.</p>
<p> </p>
<p><span style="font-size:14pt;"><strong>Situations requiring Gazetted Officer Attestation</strong></span></p>
<p>You would need to reach the Gazetted Officer, with your valid original ID proof and its copy to get your documents attested. It is, generally, required when applying for:</p>
<ol>
<li>Ration card</li>
<li>Passport</li>
<li>Government jobs</li>
<li>To take Admission in Schools, Colleges</li>
<li>While filing for tenders, some have a prerequisite of attested certificates</li>
<li>Documents for Digital Signature Certificate (DSC)</li>
</ol>
<p> </p>
<p><span style="font-size:14pt;"><strong>Important points about Gazetted Officer Attestation</strong></span></p>
<ol>
<li>A Gazetted Officer does <strong>not include </strong>any officers of <strong>Notary, Nagar Sevak</strong>, etc.</li>
<li>Only officers of <strong>Group A</strong> and <strong>Group B</strong> can attest the documents. Officials coming under two other categories Group C and Group D are not Gazetted, Officers.</li>
<li>If attestation is being done for the purpose of applying for a <strong>passport.</strong> It can only be done by <strong>Group A</strong> gazetted officer only who are under the rank of Secretary/Dy. Director (Level 11 and above), for example, Sub-divisional Magistrate, etc.</li>
<li>Only a <strong>Group A</strong> official can attest the documents related to C<strong>itizenship Certification</strong>.</li>
<li>Only a <strong>Police Official</strong> and <strong>Group A</strong> official can attest <strong>Character Certificate</strong>.</li>
<li>The <strong>name, designation and contact number of the gazetted officer</strong> should be clearly mentioned.</li>
<li>The Documents are to be attested in <strong>blue ink only</strong>. To be valid, it has to have a <strong>stamp of the attesting officer</strong> and the department or organization he belongs to.</li>
<li>There are <strong>no fees</strong> for getting the attestation done by any gazetted officer.</li>
</ol>
<p> </p>
<p><span style="font-size:14pt;"><strong>End of Gazetted Officer's Attestation</strong></span></p>
<p>One of the lesser spoken and disputed contribution of the current government has been the relaxation in the troublesome practice of requiring Attested copies of Certificates for higher studies and government jobs, to accompany the application forms. Since 2014, a lot of services require only self-attested copies now. Earlier, it was resulting in a wastage of time and the general citizens, many times, had to pay money for this free service.</p>
<p>The Central Government, also, wrote to the State Governments guiding them to do away with the requirement of attaching affidavits or documents attested by Notary or Gazetted Officials. To reduce red-tape, simplify the procedure and make the methods citizen friendly. </p>
<p>Taking the cue, State Governments are adopting the provision of Self-Certification by applicants, instead of asking for an attested copy, in a phased manner. Thereafter, self-attested documents such as birth certificates and mark sheets, are accepted. Gazetted Officer's attestation is no more required to take a Tatkal Passport or admissions to State or Central Universities or even Government jobs.</p>
<p>Self-Attestation rules, however, require the person to keep ready the original documents at the final stage.s</p>
<p>Though the Central Government wants to completely rid this requirement with the help of biometrical verification. Still, Self-Attestation is not permitted in some cases where it is a statutory requirement. </p>
<p><em>The article has been written by Reema, a content writer with LegalRaasta. India's top portal for professional help related to legal, finance and business such as </em><a href="https://www.legalraasta.com/income-tax-return/"><em>ITR filing</em></a><em>, Company Registration, </em><a href="https://www.legalraasta.com/trademark-registration/"><em>trademark registration</em></a><em>, etc.</em></p>
<p> </p></div>12 Important Points to note about Succession Certificatehttps://globalriskcommunity.com/profiles/blogs/12-important-points-to-note-about-succession-certificate2019-05-01T06:13:53.000Z2019-05-01T06:13:53.000ZJatin Kapoorhttps://globalriskcommunity.com/members/JatinKapoor<div><p><strong><span>1) What is Succession Certificate?</span></strong></p><p><span>A Succession Certificate establishes who the legal heirs are and the authenticity of the successor. It is a Certificate given to the successor of a deceased person who dies without leaving a will. The list of debts, securities, and assets of the deceased is mentioned. It indicates the relation of the petitioner with the deceased. Along with providing details of other surviving legal heirs and that the deceased died intestate. And the information about the time, date and place of death of the deceased. It means that the certificate holder has authority over the deceased person’s assets of the deceased. The assets may include Insurance, Mutual Funds, Pension (in<strong> <a href="https://www.legalraasta.com/provident-fund-epf-registration/">Employees Provident Fund</a></strong> or otherwise), Retirement Benefits or any other service benefits. In other words, it helps the grantee or the receiver, to recover the debts due to the deceased person.</span></p><p><span>In the absence of a will, this is the primary certificate through which the heirs can stake a claim to the assets of a deceased relative.</span></p><p><span>Moreover, it protects the payer that the debt released by him has gone to a certified person.</span></p><p><span>The successor would receive assets as well as inherit any debts/loans to be paid, as per the Indian Succession Act, 1925. The governing Sections are 380, 381 & 382.</span></p><p></p><p><strong><span>2) Intestate</span></strong></p><p><span>The Legal Term, for when a person has died, without making a legally valid will. Intestate may be the entire assets or some particular ones only. In other words, intestacy is either total or partial.</span></p><p><span>Total intestacy is when the deceased has not named any beneficiary to any of his property. In other words, the will wasn't made or doesn't exist.</span></p><p><span>Partial intestacy is where the deceased effectively disposes of some of the beneficial interest in his property by will. But not all.</span></p><p><span>Key Elements:</span></p><ol><li><span>If the deceased has left <strong>no will.</strong> He has died intestate in respect of the whole of his property.</span></li><li><span>When the deceased has left a will appointing someone as his executor. However, the will doesn't contain any other provision. Then it is understood that he has died intestate in respect of the <strong>distribution</strong> of his property.</span></li><li><span>If the deceased has bequeathed his whole property for an <strong>illegitimate or illegal purpose.</strong> In such a case, legally, he has died intestate.</span></li><li><span>When a will is <strong>partially incapable of being operative</strong>. For example, he has bequeathed Rs. 1000 to A and Rs. 1000 to the eldest son of B. Made no other bequest. And has died leaving the sum of Rs. 2000.00 and no other property. B dies before the deceased without ever having a son. Then he has died intestate in respect of the distribution of Rs.1000.</span></li></ol><p></p><p><strong><span>3) Which Authority issues Succession Certificate?</span></strong></p><p><span>Indian Succession Act, 1925 governs the procedure and has laid down the mandatory requirements for Succession Certificate.</span></p><p><span>A succession certificate is issued by a district judge. The relevant judge is from the court that has jurisdiction in the district where the deceased person ordinarily resided. Where no such place is available, the jurisdiction within which any property belonging to the deceased may be found.</span></p><p></p><p><strong><span>4) Particulars required when applying for Succession Certificate?</span></strong></p><p><span>The legal heirs of the deceased must file an affidavit petitioning their claim to the property. The petition is to be made to the District Judge or in High Court. It needs to be signed and verified by the applicant. It must include the following details:</span></p><ul><li><span>A copy of the <strong>death certificate</strong> has to be produced,</span></li><li><span>The <strong>time of death</strong> must be mentioned on the death certificate,</span></li><li><span>The <strong>ordinary residence of the deceased</strong> before death. Or if no such address is available, then the details of his property that falls within the jurisdiction where the petition has been filed,</span></li><li><span>Address, Name & other details of the <strong>legal heir</strong>, family or other near relatives, as per the Act,</span></li><li><strong>NOC</strong> <span>or No Objection Certificate (from legal heirs other than the petitioner)</span></li><li><span>Any legal heir who wishes to relinquish his right to the estate, he must declare so in an <strong>affidavit.</strong></span></li><li><span>Name, Address, and occupation of the <strong>petitioners</strong>,</span></li><li><span>Copies of their <strong>Ration Cards or Passports,</strong></span></li><li><span>The <strong>right of the petitioner</strong> has to be mentioned,</span></li><li><span>The <strong>debts and securities</strong> for which the certificate is being applied for,</span></li><li><span>A <strong>declaration</strong> to be made for the absence of any reason to invalidate the grant of the certificate,</span></li></ul><p></p><p><strong><span>5</span></strong><strong><span>) Court's Grant of Succession Certificate</span></strong></p><p><span>The procedure after the petition has been submitted to the district judge of the high court:</span></p><p><strong><span>Step 1:</span></strong><span> The petition is submitted along with <strong>court fees.</strong> The Court Fees Act, 1870, prescribes a specific percentage of the value of the estate. This is to be paid in the form of judicial stamp papers. This fee varies from State to State, in India.</span></p><p><strong><span>Step 2:</span></strong><span> The Judge will <strong>inspect</strong> the application. And make it public by issuing a <strong>notice</strong> in the national newspapers. And send a notice to all the respondents. The notice calls for objections, if any, to issue a succession certificate. It generally provides a period of 45 days to protest, with necessary documentary proofs. After 45 days are over, he will fix a date for the hearing.</span></p><p><strong><span>Step 3:</span></strong><span> At the date of the hearing, the judge will <strong>decide</strong> if the applicant is within his right to apply. If satisfied, he shall grant the certificate. The certificate would <strong>specify the debts and securities</strong> set forth in the application. It will mention the <strong>powers granted</strong> to receive interest/dividend or to negotiate/transfer/both.</span></p><p><strong><span>Step 4:</span></strong><span> The Judge may also require the applicant to sign an <strong>Indemnity Bond</strong> to secure the entitled persons. This Bond may also require a <strong>Surety or some other security</strong>. That'll ensure no possible loss arises out of the use or misuse of such certificate.</span></p><p></p><p><strong><span>6) The validity of the Certificate</span></strong></p><p><span>The succession certificate is valid throughout India. For a resident of a foreign country, a certificate may be granted. Provided it has been approved by an Indian representative, accredited to that State (as appointed by the government). of such foreign country. And it must be stamped in accordance with the Court Fees Act 1870 to have the same effect in India.</span></p><p></p><p><strong><span>7) Who can Apply?</span></strong></p><p><span>An adult person of sound mind and having an interest in the estate of the deceased can apply. The interest may be in the form of a relative of the deceased, a person having a beneficial interest in the debt of the security etc.</span></p><p><span>The applicant cannot be a minor. However, the succession certificate can be granted to a minor through a guardian.</span></p><p><span>Sometimes, it gets difficult and time-taking to establish a relationship for those claiming to be legal heirs. In such cases, a succession certificate can be granted to establish a relationship. The rights of the grantee towards debts/investments are valid even before the legal heir to the property of the deceased is established.</span></p><p><strong><span>8) What if more than one application has been filed?</span></strong></p><p><span>When more than one application has been filed, the judge will decide whom to issue the certificate. He will take into consideration, the interests presented by the applicants. The reasons provided and the supportive documents would be considered.</span></p><p></p><p><strong><span>9) What if some Debts/Securities were left out?</span></strong></p><p><span>As per Section 376, the succession certificate can be extended for any debt or security not originally specified. If such extension/amendment is ordered, it shall have the same effect as the original certificate. The District Judge would extend, on an application by the holder/grantee and not of any other person.</span></p><p></p><p><strong><span>10) Difference between Succession and Legal Heir Certificates</span></strong></p><p><span>A Succession Certificate is necessary, but may not be always sufficient, to release the assets of the deceased.</span></p><p></p><p><strong><span><a href="https://images.yourstory.com/cs/1/b3c27080-ab5e-11e8-8691-f70342131e20/table1555743758263.png?fm=png&auto=format" target="_blank"><img src="https://images.yourstory.com/cs/1/b3c27080-ab5e-11e8-8691-f70342131e20/table1555743758263.png?fm=png&auto=format&profile=RESIZE_710x" class="align-full" alt="table1555743758263.png?fm=png&auto=format&profile=RESIZE_710x" /></a></span></strong></p><p></p><p><strong><span>11) Laws Governing various Religions</span></strong></p><p><span>Under the Indian legal system, the property is divided amongst the heirs, as per the religion of the deceased. The laws of the Religion will be applicable in case of Intestate Death. Otherwise, a valid will supersedes the succession rights as per religion.</span></p><p><strong><span>Hindu Law:</span></strong></p><p><span>For Hindus (including Buddhists, Jains, and Sikhs) the Hindu Succession Act, 1956, and Hindu Succession (Amendment) Act, 2005 are applicable.</span></p><p><span>If a <strong>Male Hindu</strong> dies intestate:</span></p><ol><li><span>His property goes to <strong>Class I</strong> heirs. They include Son, daughter, widow, mother of the deceased. Son, daughter, and widow of a predeceased son, if any. Son and daughter of a predeceased daughter, if any. Children and widow of predeceased son of a predeceased son, if any.</span></li><li><span>If there is no Class I heir, it will go to <strong>Class II</strong> heirs. It includes father, brother, sister, brother's son and sister's son, among others.</span></li><li><span>When there's no Class II heir either, then the property will go to <strong>Agnates.</strong> Those relatives of the deceased that may be related by blood or adoption. The lineage must be wholly through <strong>males.</strong></span></li><li><span>And in case the Agnates are absent too, then to <strong>Cognates. </strong>Distant relatives, by blood or adoption, and <strong>not wholly through male lineage.</strong></span></li><li><span>If any Cognate doesn't exist, the assets go to the <strong>government. </strong></span></li></ol><p><span>When a <strong>Hindu female</strong> dies intestate, her property would devolve as below:</span></p><ol><li><span>First, to <strong>husband, sons, and daughters</strong> (including children of predeceased son or daughter). Divided in <strong>equal</strong> measures.</span></li><li><span>Second, to <strong>husband's heirs</strong>.</span></li><li><span>If the husband doesn't have any heir, then to <strong>mother and father</strong> of the deceased female.</span></li><li><span>When the parents have expired, then to <strong>heirs of the father</strong>.</span></li><li><span>If none of the above exists, to <strong>heirs of the mother.</strong></span></li></ol><p><span>Many cases occur when a Hindu Female has <strong>inherited property from her parents</strong>. In that case, if she has no children, the property shall devolve upon the <strong>heirs of her father</strong>. The term children here include children of any predeceased son or daughter. However, if a property is <strong>inherited from in-laws,</strong> it shall go to the <strong>in-laws’ heirs</strong>. In case of absence of children or grandchildren.</span></p><p><strong><span>Hindu Undivided Family or HUF</span></strong></p><p><span>The property of a Hindu Joint Family devolves by survivorship. If the Karta dies, the property devolves upon the <strong>surviving members up to four generations</strong>. Here the property will not devolve according to the Hindu Succession Act, regardless of the fact that the heirs are Hindu.</span></p><p><span>But a <strong>Class I relative</strong> may make a claim on a share of the property. In such a case, the property would devolve upon the claimant as per the Hindu Succession Act.</span></p><p><strong><span>Muslims (covered by Shariat)</span></strong></p><p><span>As per the Muslim law in India (Shariat), the father is the absolute owner of the property. The property is inherited by the heirs on the death of the father. So a father can alienate the property as an absolute owner and deprive the heirs of inheritance. But he cannot dispose of more than one-third of his assets without the consent of his heirs.</span></p><p><span>The property is considered <strong>after the payment of funeral expenses and debts.</strong></span></p><p><span>The remaining property is the legal right of his heirs after his death.</span></p><p><span>The <strong>Qazi (judge ruling</strong> according to Islamic religious law) considers the burial expenses. Makes a list of the assets of the deceased that need to be distributed among wife and children.</span></p><p><span>Muslim law recognizes two types of heirs- <strong>Sharers and Residuaries.</strong> Sharers are entitled to a certain share in the deceased's property. Residuaries take up the left-over share in the property.</span></p><p><span>Moreover, agricultural land has been kept outside the Shariat Act, 1937. Hence, the succession to it continues to be governed by Local Tenancy Law.</span></p><p><span>Besides, when the marriage of the deceased was solemnized under the Special Marriage Act, 1954. Then the rules of Muslim personal law cease to apply, towards the succession.</span></p><p><strong><span>Christians (covered by the Indian Succession Act)</span></strong></p><p><span>Any property, insofar as he is an Indian Christian, shall devolve as per the rules contained in Chapter II of the Act.</span></p><ol><li><span>One-third of the property goes to the wife. And the rest will be divided among children (including grandchildren of predeceased son or daughter). To be divided in equal measures.</span></li><li><span>If there is no wife or has expired, the property will be divided, equally, among the children.</span></li><li><span>When there are no children, the property is shared equally between the wife and the husband’s relatives.</span></li><li><span>If the relatives stated above do not wish to claim, the assets will devolve upon the parents of the deceased.</span></li></ol><p><strong><span>Parsis (covered under the Indian Succession Act)</span></strong></p><ol><li><span>Half of the property goes to the wife. And the rest to be divided among children (including grandchildren of predeceased son or daughter). In equal measure.</span></li><li><span>If there is no wife or has expired, the property will be distributed, equally, among the children.</span></li><li><span>When there are no children, the property will go to the parents of the deceased.</span></li></ol><p></p><p><strong><span>12) A few more points about the Certificate</span></strong></p><p><span>The essential purpose of this certificate has been to provide protection to all parties paying debts. When these payments have been made in good faith. The grantee also has powers to receive any interest/dividend on the securities and negotiate or transfer them. Thus any payments made to and by the grantee on behalf of the deceased person are legally valid.</span></p><p><span>The Grantee has the right to:</span></p><ol><li><strong>Claim the moveable assets</strong> <span>of the deceased person.</span></li><li><span>This certificate is <strong>not applicable</strong> to inherit the <strong>immovable assets. </strong>For immovable properties, you need letters of administration from the court.</span></li><li><strong>Represent the deceased</strong> <span>in collecting any payment towards debts and/or securities due.</span></li><li><strong>Inherit the liabilities</strong> <span>of the deceased person, as well.</span></li><li><span>It can be granted even if there is a <strong>nomination</strong> in the deposits, investments, insurance, etc.</span></li><li><span>Further, it <strong>doesn't necessarily make</strong> the certificate holder, <strong>a legal heir</strong> or the owner of these assets. There is a separate procedure of law to determine the legal heir(s).</span></li><li><span>Above point means that the grantee is authorized to act only as a <strong>trustee to the legal heirs</strong>.</span></li><li><span>A Legal Heir certificate <strong>doesn't substitute</strong> the Succession Certificate.</span></li><li><span>It can be <strong>revoked/canceled</strong> under certain situations. These may be fraud, defective proceedings, etc. Thereafter, the certificate becomes useless.</span></li><li><span>The court, even if there is more than one heir, will only issue <strong>a single succession certificate</strong>.</span></li></ol><p><span> </span></p><p><span>The Succession Certificate affirms that there has been no will. And denotes the legal heirs of the deceased. The beneficiary will, additionally, carry with him the full responsibility and liability of honoring any debt or security attached to that particular property.</span></p><p><span>Sometimes, the bank only asks for it in case another legal heir is contesting the nominees claim. On the other hand, if the matter goes to the court, it will be necessary. It isn’t the aptest document in case of properties. For this, a letter of administration would be required. A letter of administration is an explicit document granting a person the authority to administer the property of the deceased. The procedure to get this document is the same as the procedure for getting the succession certificate.</span></p><p><span> </span></p><p><em>The article has been written by Reema, in the capacity of a content writer with LegalRaasta. India's top portal for professional help related to legal, finance and business such as<strong> <a href="https://www.legalraasta.com/income-tax-return/">ITR filing</a></strong>, Company Registration, GST registration, etc.</em></p></div>TDS rates revised for accounting year 2019-2020https://globalriskcommunity.com/profiles/blogs/tds-rates-revised-for-accounting-year-2019-20202019-04-30T09:08:00.000Z2019-04-30T09:08:00.000ZJatin Kapoorhttps://globalriskcommunity.com/members/JatinKapoor<div><p><strong>Overview</strong></p><p>TDS or Tax Deducted at Source is the tax that is deducted at the source of income of a person. During the union budget every year, the revised rates are announced. There are a number of rates for different nature of income falling under different heads. This could vary from 1%-30%. </p><p><strong>Aim of TDS</strong></p><p>The main aim of TDS is to deduct the income at the very source and remit the deducted amount to the central government’s account. Furthermore, the person from whose account this amount is deducted is eligible to get a credit of such amount through Form 26AS or TDS certificate issued by the deductor.</p><p><strong>The basis of TDS Deduction</strong></p><ul><li>TDS is deducted at source before receiving income under different heads such as an incentive (bonus/perks), interest earned on fixed deposit, lottery winnings, rent paid or commission payment.</li><li>Tax is deducted, according to a rate, before the process of payment is carried out and if the tax is deducted more, then the person is eligible for TDS return. Apply now for <strong><a href="https://www.legalraasta.com/tds-return/">TDS return filing</a></strong></li><li>Deductor is the person/organization/company/institution providing income. And Deductee is the person from whose account the tax is deducted.</li><li>The employer is needed to provide form 16/16A (TDS certificate) to the employee. And there is no need for this certificate in case of TDS exemptions.</li></ul><p><strong>Exemption from TDS</strong></p><p>TDS is exempted in few cases. For instance, if you make the payment to the RBI or Central government. Along with this, TDS is exempted from the interest paid to the following</p><ul><li>Banking companies.</li><li>Refund on income tax.</li><li>Direct taxes.</li><li>LIC, UTI, and interest made in co-operative societies.</li><li>Financial corporations formed under the finance bill of union government or any state.</li><li>Any organization falling under Nil TDS organization.</li><li>The interest earned on the following:</li></ul><ol><li>from a savings account operated in cooperative societies or commercial bank.</li><li>on NRE account.</li><li>on Indira Vikas Patra, NSC or KVP.</li></ol><p><strong>Sections of TDS</strong></p><p>Income Tax act 1961 describes TDS as a spot tax which is deducted from the actual source of income. It is applicable on the income received from financial products like interest received on fixed deposits, incentives from the employer, commission’s payments, dividends on bonds, sale/purchase or rent of any immovable property and money earned as lottery or awards.</p><p><strong>Latest TDS rate of the annual year 2019-20</strong></p><p>The rates at which TDS is charged is declared under various provisions of the Income Tax Act or the first schedule of the Finance Act. If this payment is to non-resident citizens, then the provisions of withholding tax rates under the Double Taxation Avoidance agreement shall also be considered.</p><p><a href="{{#staticFileLink}}8028293477,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028293477,original{{/staticFileLink}}" class="align-full" alt="8028293477?profile=original" /></a><br /></p><p><strong>Payment portals of income tax</strong></p><p>Tax deducted at source is supposed to be transferred to the credit of Central government account via the following ways:</p><p><strong>Electronic mode:</strong> E-payment is necessary for</p><ul><li>Every corporate assesses</li><li>All other corporate assesses other than companies, to whom the section 44AB of Income-tax, 1961 is applicable</li></ul><p><strong>Physical mode:</strong> A person can file TDS by launching a challan 281 in the bank.</p><p><strong>TDS charged rates on salary</strong></p><p>Under section 192, TDS is charged on the average income from the employee’s account. If the income of the employee doesn’t exceed INR 2,50,000 then there is no TDS. But if the income exceeds this limit, then the TDS is charged 20%, if the person has no PAN card.</p><p><strong>TDS charged on Insurance commission</strong></p><p>The exemption limit of Insurance commission is Rs.15,000. Earlier it was Rs.20,000. The TDS % is 5 but 20% when the PAN card is not furnished. The TDS rates for other commissions include:</p><ul><li>Section 194G: Commission charged on the sale of lotteries, which is 5%</li><li>Section 196H: Commission charged on brokerage, which is 5%</li><li>Section 196J: Remuneration/fee/commission charged to a director, which is 10%.</li></ul><p><strong>TDS charged on services</strong></p><p>According to section 194J, a person is liable to pay the TDS in the following payments</p><ul><li>The service charge for technical services</li><li>The service charge for professional services</li><li>Remuneration/fee/commission to the director</li><li>Royalty paid</li></ul><p>If the person possesses PAN card, he/she is supposed to pay 10% but when PAN card is not furnished, then higher rates are charged as follows</p><ul><li>Provisions mentioned under either the Finance Act or Income Tax Act</li><li>TDS at the rate of 20%</li></ul><p><strong>TDS charged on Fixed Deposits</strong></p><p>TDS charged on fixed deposits is exempted till INR 10,000 per annum i.e. until the fixed deposit year exceeds Rs. 10,000, no TDS is charged. When this limit is exceeded, the TDS is charged at the rate 10% otherwise 20% (when there is no PAN card). For senior citizens (above 60 years old) this limit is Rs.50,000 per year.</p><p><strong>TDS rates charged on contracts</strong></p><p>Under section 194C, the payment made to complete the contract for the following work is charged.</p><ul><li>Advertisement contracts</li><li>Telecasting or broadcasting contract</li><li>Transport of goods from any mode (other than railways)</li><li>Catering services</li><li>Production or supplying goods according to the specifications made by the buyer, for which the raw material is supplied by the buyer as well.</li><li>Supplying labor for contractual work</li></ul><p> </p><p>The rate under section 194C is 1% for individual or HUF, but otherwise, it is 2%. In case of absence of PAN card, it is 20%.</p><p><strong>TDS rates charged on interests</strong></p><p>Section 194A communicates the provision of TDS charged on interest other than securities. TDS will be charged if the interest paid by bank exceeds Rs.10,000 and if the interest paid by other sources exceed Rs.5,000.</p><p>Under this section, TDS is charged at the rate of 10% (if the person has PAN card) and 20% (if he/she doesn’t)</p><p>Exemptions of section 194A:</p><ul><li>If the interest is paid on loan taken from a bank</li><li>If the interest is paid on loan is taken from friends and relatives</li><li>Interest is paid on an unsecured loan.</li></ul><p>This article is written by Anubhav, who is a content writer at LegalRaasta. </p><p>LegalRaasta is a platform that offers tons of legal services like <span>Income tax return filing</span>, <strong><a href="https://www.legalraasta.com/gst-return/">GST return filing</a></strong> and many more.</p></div>Business Relationship under Indian Domestic Tax Lawshttps://globalriskcommunity.com/profiles/blogs/business-relationship-under-indian-domestic-tax-laws2019-01-11T12:22:59.000Z2019-01-11T12:22:59.000ZJatin Kapoorhttps://globalriskcommunity.com/members/JatinKapoor<div><p>The Indian household charge laws have expressed that every one of the salaries produced or emerging in India, paying little heed to it being straightforwardly or by implication earned, through or from any business association in India will be esteemed to gather or emerge in India itself. In more straightforward terms, any pay acquired from a business by Non-Residents of India is assessable in India if the said individual has a business association in the nation. This article discusses the Business Connection under Indian Domestic Tax Laws and the fundamentals data identified with the equivalent.</p><p><strong>Overview</strong></p><p>The extent of business association under the Indian local duty laws was like those arrangements under the Dependent Agent Permanent Establishment (DAPE) in Article 5(5) of the Double Taxation Avoidance Agreement (DTAA) that is gone into by India with different nations. Under the said terms, if an individual following up for a Non-Resident is routinely approved to finish up contracts for the Non-Resident. At that point, such a specialist would comprise a lasting foundation in the source nation.</p><p>Be that as it may, under different cases, with the expectation of staying away from a perpetual foundation under Article 5(5) of the DTAA, the individual following up in the interest of the Non-Resident arranges an agreement however does not close the assertion. Subsequently, a survey was led by the Organization for Economic Co-task and Development (OECD) under the Base Erosion and Profit Shifting (BEPS) to rethink the meaning of a Permanent Establishment so as to keep the shirking of duty installments by evading the current Permanent Establishment definition as indicated by commissionaire game plans or discontinuity of business exercises.</p><p><strong>Amendments</strong></p><p>The inception made incorporates the BEPS Move Plan 7 that purchased forward changes to the Article 5(5) that right now expresses that a specialist would not just incorporate an individual who routinely finishes up an agreement in the interest of a Non-Resident, yet additionally an individual who as a rule assumes a key job prompting the finish of assertions. The suggestions under BEPS Action Plan 7 has been incorporated into Article 12 of the Multilateral Convention to Implement Tax Treaty Related Measure (MLI), to which India is a signatory as well. Therefore, these arrangements will change India's individual DTAAs secured by MLI consequently. This would expand the extension than the arrangements included by the Indian household impose laws.</p><p>As indicated by the Indian Government, the extent of business association has been extended as characterized under the Indian residential expense laws reliable with Permanent Establishment Rule as revised by the BEPS Action Plan 7 and MLI by presenting the idea of operator routinely assuming the huge job prompting the determination of an agreement. In this specific situation, the agreements are:</p><ul><li>For the sake of the Non-Resident;</li><li>For the exchange of the possession, or for conceding the privilege to utilize a property claimed by the Non-Resident or for which the Non-Resident has a privilege to utilize;</li><li>Or then again for the arrangement of administrations by that Non-Resident.</li></ul><p> </p><p>The corrections in the duty laws of India will adjust the equivalent to the arrangement of the DTAA as altered by the MLI to make the necessities of the DTAA compelling. Despite the fact that, it ought to be noticed that since the current meaning of the PE under the DTAAs is smaller than the previously mentioned changed definition under the Indian duty laws, in this manner, the arrangements of DTAAs being undeniably more gainful than the Indian local expense laws would keep on applying to a Non-Resident till the MLI laws come into power.</p><p><strong>Significant Economic Presence</strong></p><p>With impact from April 01, 2018, the Government of India has extended the extent of Business Connection to incorporate Significant Economic Presence. Under this specific circumstance, Significant Economic Presence later will mean:</p><ul><li>Any exchange concerning any products, administrations or property did by a non-occupant in India including the arrangement of download of information or programming in India if the total of installments emerging from such transaction(s) amid the earlier year surpasses the sum as recommended; or</li><li>Constant and deliberate requesting of its business exercises of taking part in cooperation with digitized clients as determined, in India through advanced methods.</li></ul><p>The BEPS Action Plan 1 on tending to the expense difficulties of the advanced economy suggested adjusting the current meaning of Permanent Establishment to give that:</p><ul><li>An undertaking occupied with completely de-emerged advanced exercises would comprise a PE on the off chance that it kept up a critical computerized nearness in another nation's economy;</li><li>Virtual PE would be comprised when an endeavor keeps up its site on a server of another undertaking situated in a purview and brings out its business through that site.</li></ul><p>The BEPS Action Plan 1 likewise suggested that nations may present the accompanying shields in their residential laws to counteract BEPS:</p><ul><li>Another nexus rule dependent on the idea of a critical financial nearness.</li><li>Retaining the duty on particular sorts of computerized exchanges.</li><li>A balance collect</li></ul><p>Prior the Indian residential assessment laws accommodated a physical nearness based nexus rule for tax collection of business pay of the Non-Resident in India-regional nexus. Developing plans of action, for example, a digitized business, which does not require a physical nearness of itself or some other specialist in India, were not secured by the household charge laws in India.</p><p><strong>Applicability</strong></p><p>The changes referenced above will apply to every online ad, online quests, cloud administrations and other advanced items to guarantee that the benefits acquired by these organizations credit to the clients in India and are saddled in India itself. This could bring enormous firms, for example, Google, Facebook, Amazon and Netflix and application designers, for example, Uber Inc. with colossal shopper bases in the nation into the assessment net.</p><p>The changes return at the of equalization require at the rate of 6 percent forced from the First of July, 2016, on web based promoting installments to remote substances not owning a Permanent Establishment in India. In like manner, organizations that move products carefully or execute computerized benefits in India with or without an assessable nearness in India may fall inside the fields of this alteration.</p><p>The income based factor and use-based factor approach proposed by the Finance Bill to decide nexus dependent on the idea of critical financial nearness is in accordance with the Action Plan 1. In any case, the rules on this respect recommending the conditions and as far as possible are yet to be issued.</p><p><span>This article has been contributed by Gaurav Rawat who is a content writer with LegalRaasta. LegalRaasta is an online portal that assists companies and startups with </span><a href="https://legalraasta.com/trademark-registration/">Trademark Registration</a><span>, </span><a href="https://www.legalraasta.com/private-limited-company-registration/">Company registration</a><span>, </span><a href="https://www.legalraasta.com/nbfc-registration/">NBFC Registration</a><span>, </span><a href="https://www.legalraasta.com/gst-return/">GST Return</a><span>, </span><a href="https://www.legalraasta.com/iso-registration/">ISO Certification</a><span>, and </span><a href="https://www.legalraasta.com/income-tax-return/">ITR filing</a></p></div>