The Tax Preparation Blog

Archive for September, 2010

Question: TDS on Professional Fee?

Hi
I am recruitment consultant. when i raise the bill to my client, they send in the cheques after deducting the TDS. I hv few questions abt this :
1. How can i take care of this at the end of the years,
2.Are there any tax deduction slabs in professional fee as well like income.
3. Also, do i need to show the proof of expensies done on business while filling the return?

It wud be helpful if smone cud address to these queries.
Thanks in Advance.
—

Answer: if your yearly bill to a client is more 20000 in a financial year than client is responsible to deduct tax on the payment .the rate of tax is 10 % basic rate plus surcharge10%on basic rate(if applicable) and cess 3% on (basic +surcharge).

1.tds is adjustable against your tax liability to which income relates on which tax has been deducted.if you have nil tax liability than tds will be refunded to you.
2. there is no tax slabs for tds on professional fee .
3. yes you should have resonable evidence for expenses you have done ,moreover if your gross receipts are more than 120000 than you are liable to maintain proper books of accounts and if your gross receipts are more than 10 lacs than your books should also be audited u/s 44ab

you can download free tds calculator from the link given below

http://simpletaxindia.blogspot.com/2007/10/free-tds-calculator-fy2007-08-excel.html

JK Harris & Company Warns Taxpayers about the Consequences of a Federal Tax Lien

According to the National Taxpayer Advocate’s semiannual report released in July, federal tax liens are up 475% since 1999.

Tax Consultant

Question: Can bank account seize ?

One of my friend is having saving account in one of the Nationalised bank , he had given some proof while opening the account , but he had not having PAN card & PAN card is not submitted while opening the account , but he is depositing rs 10000/-every month in the saving account & withdrawing only rs 100/- or rs 500/- every month as per his need, can any how the income tax department of India can take the action or can seize the saving account , or is that compolsury for every branch of Nationalised bank to furnish such transaction details of the account to the income tax department of India , as my friend is not interested to apply for the PAN card , can he come in problem, please reply .
I am waiting for the direction , no one had send me any ideas last 3 hours .
please reply , please reply , please reply .

Answer: He can get his money back but it will be a laborious process, sorry

Form guide to the race for riches

GET with the trend is usually wise advice for an investor, even if that trend is hard to spot, as it was this past year.

Find Quality Investments With ROIC

Return on invested capital , or ROIC, is arguably one of the most reliable performance metrics for spotting quality investments. But in spite of its importance, the metric doesn’t get the same level of interest and exposure as indicators like the P/E or ROE ratios.

Jesse Jackson confronted on Obama Hypocrisy & Carbon Tax

Question: Prop 19: Regulate, Control and Tax Cannabis. What is your opinion?

Prop 19, basically the legalization of marijuana, will be on the ballot in California this November.

Do you support this proposition? Also, are you planning on voting?

I personally am not a registered voter, but I do highly support this proposition not because I smoke marijuana, but because it has many potential benefits such as: the reduction of power of drug cartels, the potential revenue, and the simplification legalization would bring to the production and use of the hemp, a valuable and diverse agricultural product. There are so many more that I believe everyone should take into consideration before voting.

Answer: SUPPORT:)

Court leaves marijuana dispensaries in legal limbo

Michael Montgomery It may be a strange notion to the residents of California’s largest cities, where pot dispensaries are well-established (and increasingly regulated), but advocates are still struggling to find a legal magic bullet to safeguard access to medical marijuana for qualified patients elsewhere in the state. Last week’s long-awaited ruling by a state appellate court on a case …

California Tax Cannabis 2010 Media Coverage – KPTV

INFO-TECH

TAXATION: Vodafone loses Rs 12,297-cr tax challenge The Bombay High Court on Wednesday dismissed the petition filed by Vodafone challenging the jurisdiction of the Income Tax Department to levy tax on its 2007 acquisition of the majority stake in the mobile operator …

Google Internet Summit 2009: Information is Power Part 2