( i ) Business losses , other than unabsorbed depreciation , can be carried forward for the subsequent eight years and set off against taxable business income
( ii ) It is mandatory to submit the annual return of income within time in order to claim carry forward benefit
( iii ) Losses of closely held companies can be carried forward for set-off , provided at least 51 per cent of the share capital continues to be beneficially held by the same person ( s )
4.6.1.9 Withholding Tax
Businesses need to withhold tax on specified payments viz salary , contractual , brokerage , commission , professional fees , etc . To illustrate
Payee |
When |
Tax Withholding Rate |
Date of Deposit |
Reporting |
|
|
( per cent )* |
|
|
Employee |
If salary is taxable |
per prescribed slabs |
Within 7 days |
Quarterly |
|
|
Refer Para 4.6.2.4 |
of the month following the month in which payment is made |
|
Contractor |
Annual payment |
2 |
With in 7 days |
Quarterly |
|
exceeds ` 75,000 |
( 1 for individual payee ) |
of the month following |
|
|
( US $ 1,377 approx ) |
|
the month in which |
|
|
or , single payment |
|
the payment is accrued |
|
|
exceeds ` 30,000 |
|
or paid , whichever is |
|
|
US $ 551 ) |
|
earlier |
|
Landlord |
Annual rental |
10 |
With in 7 days |
Quarterly |
|
exceeds ` 180,000
( US $ 3305 )
|
( 2 for plant , machinery or equipments ) |
of the month following the month in which the payment is accrued |
|
Profession |
Annual payment |
10 |
or paid , whichever is |
|
|
exceeds ` 30,000 ( US $ 551 approx ) |
|
earlier |
|
Figure 17 * Further enhanced by applicable surcharge and education cess if payment is made to non-residents . Note : Higher TDS rate of 20 % for not furnishing correct PAN : Requirement to furnish PAN to deductor is compulsory to deductor otherwise TDS shall be deducted @ 20 % with effect from April 1 , 2010
4.6.2 Expatriate Taxation
Taxation of expatriates in India certainly merits special attention . Besides an inherent understanding of the domestic laws , an understanding of the concerned tax treaty is essential . The matter cannot be classified as always clear , since case rulings and emerging legal provisions have constant bearing . Normally an expatriate is taxed on his total income if he is a resident of India . A non resident is taxed on his income arising to him in India .
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