What is Section 205 of Income Tax Act?
v Section 205 of the Act provides that where tax is deductible at the source under Chapter XVII of the Act, the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted.
What are the sources of dividend as per company Act 1956?
As per Section 205 of the Companies Act, 1956, a dividend (including interim dividend) can be paid out of current profits or profits accumulated of earlier years. However, depreciation for the entire year has to be provided before a dividend is declared or paid.
What happens if employer does not deposit TDS?
Penalty for companies for not depositing or not deducting TDS on time. The employer can make the interest payment on such late payment of TDS before filing TDS returns or demand raised by TRACES. Also, the interest paid delay while depositing TDS is not allowed as an expense under the income tax provisions.
How can I claim TDS deducted by employer but not paid to govt?
In response to the demand notice, the taxpayer can file a reply on the e-filing portal with supporting documents showing TDS deducted from his income. The taxpayer can submit the salary slips and bank statement showing credit of net salary/other income after deduction of TDS.
What is time limit for payment of dividend?
Payment of dividend must be made within 30 days of its declaration.
What is the maximum dividend payment?
Ltd. can pay the maximum dividend of Rs. 180 crore. It can be concluded that dividend which is to be paid by the company can be paid out of current year profits or previous year profits or even from reserves, but only after complying with the prescribed conditions.
Is TDS mandatory for salary?
Yes, the deduction for TDS on salary is mandatory under Section 192 of the Income Tax Act. Every employer who pays a salaried income to his employees needs to deduct TDS on salary if the income amount is over the basic exemption limit.
How do I know if my employer has paid TDS?
How to check if TDS deducted by your Employer is deposited against your PAN?
- Kindly login to IT e-Filing portal with your credentials.
- Click on ‘View Form 26AS (Tax Credit)’ link.
- You will then be re-directed to TRACES website. (
- Click on ‘View Tax Credit (Form 26AS)’ option.
What if employer does not deduct TDS?
♣ Section 191 provides that assessee shall pay tax directly where TDS has not been deducted by deductor. If assessee does not pays taxes directly than assessee shall also be treated as assessee in default u/s 201 and interest shall be levied subsequently.
Which section of Companies Act 1956 defines holding companies?
Section 4 in The Companies Act, 1956.
How long after year end can a dividend be declared?
Dividends can be paid following the end of a company’s financial year, once its year-end financial statements have been approved (a “final dividend”), or at any time during the financial year, before the company’s annual profits have been determined (an “interim dividend”).