deduction of tax at source

deduction of tax at source

the process whereby the payer of, e.g. interest, deducts income tax at the basic rate from the payment and accounts for it to the HM Revenue and Customs. It can be compared with the system of Pay-As-You-Earn (PAYE), whereby employers are required to deduct income tax from payments of wages or salaries.
References in periodicals archive ?
10 (ANI): The provisions for deduction of tax at source (TDS) under section 51 and collection of tax at source (TCS) under section 52 of the Central Goods and Services Tax (CGST) Act will remain suspended till June 30, the GST Council said on Saturday.
Many taxpayers do not need to fill in a tax return because the Pay As You Earn system and deduction of tax at source on many types of income and savings means that they already pay the right amount of income tax.
Also, the salary of an employee is subject to deduction of tax at source and tax applicable on the entire salary is deducted by the employer for deposit in the government treasury.
To counter this, the government extended the nil rate of tax to the first PS5,000 of savings income from April 2015, thereby enabling a greater number of individuals to register to receive interest without deduction of tax at source rather than to seek a repayment of tax from HMRC.
The refund arises, as a result of excess deduction of tax at source under sections 148, 153, 231A, 231B, 234, 235 and 236 on imports; supplies, cash withdrawals from Banks, registration of motor vehicle, payment of motor vehicle token tax, and in electricity and telephone / mobile phone bills.
Non- deduction of tax at source from huge amount of commission paid to agents and the interest paid on maturity of deposits
199 constitutionalpetition Re insurance premiums paid by Pakistni company to foreign non-resident insurance companies not having Permanent Establishment in Pakistan, butbelonging to countries having Agreement with Pakistan for Avoidance of double Taxation non- deduction of tax at source on such re- insurance premiums remitted by Pakistani company to such foreign companies after insertion of S.
Decision to this effect was made by the FTO on a complaint filed by Muhammad Iqbal Sindhu Proprietor Sindhu Industry Street Heera Washing Machine Near Samanabadi Chungi Gujranwala verses the Secretary Revenue Division Islamabad against deduction of tax at source in utility bills and at the time of motor vehicle registration and cash withdrawals from bank and the resultant reduction in the refund claimed.
In a case of short deduction of tax at source, the unpaid tax can be realised only from the tax payer and not from the person who has paid the income.
HMRC will therefore be writing to tell all the contractors that had previously paid him for work within the CIS that all payments made to him after March 14, 2008 in respect of labour, should be subject to deduction of tax at source of 20 per cent.
Advance Tax Exemption Under Section 50(4) & 50(5): The assessees who are paying advance tax, should be granted exemption from deduction of tax at source under section 50(4) and 50(5) of the Income Tax Ordinance.
This means that for an individual with total income of PS15,600 or less, they will pay no tax on their savings interest thus enabling a greater number of individuals to register to receive interest without deduction of tax at source rather than to seek a repayment of tax from HMRC.