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CBIC is working on biometric authentication of risky entities under GST as it looks to crack down on fraudsters who are misusing the PAN and Aadhaar of other people to obtain GST registration. CBIC is working on biometric authentication of risky entities under GST as it looks to crack down on fraudsters who are misusing the PAN and Aadhaar of other people to obtain GST registration, CBIC chief Vivek Johri said.

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tds

TDS or Tax Deducted at Source, is a tax collection mechanism used by the Indian government to collect taxes at source from various sources of income. The TDS system requires the person or entity making a payment to someone else to deduct a certain percentage of the payment as tax and remit the balance amount to the recipient.

TDS is governed by the Income Tax Act of 1961, which outlines the rules and regulations for TDS. TDS is applicable to a wide range of payments, including salaries, interest, dividends, rent, and professional fees. TDS is also applicable to transactions such as the sale of immovable property, purchase of property, and payment made to non-residents.The purpose of TDS is to ensure that the government receives a regular source of income and that taxpayers are paying their taxes correctly. The TDS system also ensures that taxpayers are not burdened with the payment of large tax amounts at the end of the financial year.

The rate of TDS varies depending on the type of payment, the amount of payment, and the identity of the recipient. The rate of TDS can range from 1% to as high as 30%. The TDS amount deducted is credited to the government’s account and can be claimed as a tax credit by the recipient when filing their income tax return.

The TDS system is applicable to both individuals and entities. Individuals who are required to deduct TDS must obtain a Tax Deduction and Collection Account Number (TAN) and must comply with the rules and regulations for deducting TDS.

Entities that are required to deduct TDS include companies, firms, trusts, and other entities that make payments to others. These entities must deduct TDS and remit the amount to the government on a regular basis. Failure to comply with the TDS rules can result in penalties and legal action.

The TDS system has undergone several changes and revisions over the years. The government has introduced various measures to simplify the TDS process and reduce the compliance burden for taxpayers. Some of the recent changes include the introduction of a higher TDS rate for non-filers of income tax returns, the relaxation of TDS rates for certain types of payments, and the introduction of a new TDS certificate for salary payments.

Conclusion

TDS is an important tax collection mechanism in India that ensures regular and timely payment of taxes. The TDS system is applicable to a wide range of payments and is governed by the Income Tax Act of 1961. The rate of TDS varies depending on the type and amount of payment and the identity of the recipient. Entities and individuals must comply with the TDS rules and regulations to avoid penalties and legal action.

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