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SaaS application that streamlines your accounting, invoicing, and payroll needs of your business.

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News

As govt pushes for digital payments, here’s how active MSME Ministry is in transacting digitally

Read More...

Xebra is thrilled to be selected in NASSCOM 10,000 Start-ups program

Read More...

The Evolving Landscape of Security and Privacy in FinTech

Read More...

Ecommerce Agency Owner Roundtable (Virtual Event)

Read More...

Media

How did digital communication change post covid?

Read More...

Watch how pandemic has changed communication strategy for MSME companies

Read More...

In Conversation with Nimesh Shah Xebra Business Financial Suite

Read More...

Why every founder must do business financial analysis during this lockdown

Read More...

Four free business applications you can use while working from home

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Product

Make customised and compliant invoices in less than 60 secs using Xebra

Read More...

Decode cash flow statement to boost your company’s growth

Read More...

Step by step guide to kick-start your small business

Read More...

How can you maintain accounting accuracy for your small business?

Read More...

Onboarding Simplified for MSMEs

Read More...

How & Why Saas tools can help your small business?

Read More...

Should SMEs in India buy Saas applications and other online tools to become efficient and effective

Read More...

Xebra makes payroll a breeze!

Read More...

How does an invoicing software work?

Read More...

What are the basic accounting disciplines that small companies and start-ups should follow?

Read More...

SaaS application that streamlines your accounting, invoicing, and payroll needs of your business.

Read More...

Do biz-finance software’s contribute to start-ups in terms of value creation, relationships, counsel, and influence

Read More...

Accountant Vs. Bookkeeper- What’s the difference?

Read More...

Will accountants be replaced by computers in the coming years?

Read More...

Is an online business and finance software the right move for your small business?

Read More...

Should small business outsource their bookkeeping requirement or carry it out in-house?

Read More...

What are the accounting alternatives to tally for a small business?

Read More...

All You Need to know about Banking Terms

Read More...

Everything you wanted to know about Tax Deducted at Source TDS

Read More...

5 Ways Small Business Are Adopting Cloud Software

Read More...

How Cloud Accounting Can Help Small Business

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Don’t let the lockdown impact your business

Read More...

The 10 features in an ideal Online Invoicing Software

Read More...

Video

Track your assets between cities and employees at a glance with Xebra

Read More...

Trim wasteful expenses with Xebras comprehensive analytics of your business expenses

Read More...

Migrate all your data from any accounting software to Xebra in three simple steps

Read More...

Xebra eliminates the process of physical documentation for expense vouchers entirely

Read More...

Eliminate the employee onboarding hassle with Xebra’s automation

Read More...

Xebra’s Vendor Portal that streamlines payments

Read More...

Improve your cash flow with Xebra’s dedicated client portal

Read More...

Xebra’s smart alerts notify you when expenses can cross budgeted limit

Read More...

Xebra helps you track your revenue targets that you have set client-wise or product/service wise!

Read More...

Eliminate the hassle of manually creating monthly recurring expenses forever!

Read More...

Eliminate the hassle of manually creating monthly recurring invoices forever!

Read More...

Disburse monthly asset purchase payments in less than a minute!

Read More...

Disburse monthly company purchases in less than a minute!

Read More...

Increase your cash-flow and profitability with Xebra!

Read More...

Multiple GST no’s delayed your tax calculation and accounting entries?

Read More...

Disburse employee monthly salaries in less than a minute!

Read More...

Disburse your monthly Company Expenses in under a minute!

Read More...

Ways to Improve your cash flow and collect money faster from your clients

Read More...

Everything you wanted to know about Tax Deducted at Source TDS

What does TDS stand for?

TDS stands for tax deducted at source.

When is TDS to be deducted?

According to the income tax act, in case of certain prescribed payments (E.g. Interest, commission, brokerage, rent, etc.), the person making the payment is required to deduct tax at source (TDS) if payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.

Who are a deductor and a deductee?

The company or person that makes the payment after deducting TDS is called a deductor and the company or person receiving the payment is called the deductee.

What is the full form of TAN?

The full form of TAN is Tax Deduction and Collection Account Number. 

Who must have a TAN?

Under the Income Tax Act, 1961, TAN is granted to all those peoples and companies who are allowed to pay or deduct tax on cash payments by them by the Indian Income Tax Department. It is compulsory to include the TAN in all TDS returns & Challans when paying tax under Section 203A of the Income Tax Department.

  • A taxpayer can’t pay the tax without having a TAN.

The IT division confirms the amount upon receipt of the tax amount and, by accident, if the individual has paid an additional tax, then the amount will be returned directly into his account.

What is the Format of the TAN number?

  • TAN is an alphanumeric number of 10 digits.
  • The first three TAN letters reflect a city, the fourth letter is the taxpayer’s initials, and the next five digits and the last character makes the TAN different.

How and where to apply for TAN?

  • The taxpayer must fill out Form No. 49B to apply for a TAN.
  • Individual must then add all of the documents required, including proof of identity and address verification, and send it to the NSDL or Tax Information Network Facilitation Center website.
  • The NSDL division confirms the information upon obtaining the TAN application form and transfers the application form to the IT division.

What is a Challan Identification Number or CIN?

Every Income Tax Challan is identified by CIN which contains the Bank BSR code, date of deposit and challan serial no

When is tax deducted?

Tax is deducted at the time of making the prescribed payment or credit of the income/payment to the deductee, whichever is earlier. In the case of TDS on salary, the tax is deducted at the time of actual payment. In the case of TDS on rent, tax is deducted at the time of credit of rent for the last month of the year.

What are the consequences of TDS default and non-payment to the government?

Failure to deduct tax, deducting less tax, delay in payment of the deducted tax to the Government, makes the deductor an assessee liable to a penalty, which is equal to the amount for which the assessee is a deemed defaulter.

  • In case of non-deduction or less deduction or delay in deduction of tax, an interest of 1% is levied on the tax per month or part of the month. In case of delay in payment of tax after deducting, the interest of 1.5% is levied per month or part of the month. The interest is applicable till the time the tax deducted is not credited to the Government.
  • In case of delay in payment of tax after collecting it, interest at 1% per month or part of the month shall be levied till the time the tax is not paid.
  • Failure on part of the deductor to pay the tax deducted at source, to the credit of Central Government makes him liable to rigorous imprisonment of a minimum period of three months but which may extend to seven years.
  • Delay in filing TDS quarterly statements attracts:

1. A late fee of Rs. 200/- per day for each day of default, subject to certain limits (u/s 234E)

2. Minimum penalty of Rs. 10, 000 (may be extended to Rs. 1 lakh) (u/s 271H)

What is the duty of the deductor if the deductee does not furnish his PAN?

If the deductee does not furnish PAN or furnishes incorrect PAN to the deductor, the deductor shall deduct tax at source that is higher than the following rates:

(a) The rate prescribed in the Aes

(b) At the rate in force, i.e., the rate mentioned in the Finance Act

(c) At the rate of 20%

When is the TDS deposited to the credit of the government?

 

What is the due date of submission of the TDS statement?

 

You need to consider a lot of factors when you are thinking of switching to a cloud account software, to know more click here. There are also a number of banking terms that are crucial to running a successful business, if you need a short refresher, click here.

Lastly, the main question for your business being- Should small business outsource their bookkeeping requirement or carry it out in-house?  To know more, click here.

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This Post Has 2 Comments


Mark Says:

05-07-22

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Mark Says:

05-07-22

I have seen a lot of people go bankrupt and speaking from experience and how I broke through with the help of milanvan222 I was able to get my business funded which brought me back up quickly Now I make 7000 weekly from Milanvan222 strategy

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