Professional Updates

🔍 What is Section 194IB? Section 194IB mandates that individuals and HUFs who are not required to get their accounts audited must deduct TDS on rent payments , if the monthly rent exceeds ₹50,000 . ✅ Who Must Deduct TDS Under Section 194IB? Applicable To: Individuals or HUFs not liable for tax audit under Section 44AB. Applicable When: Rent paid to a resident landlord exceeds ₹50,000 per month . Nature of Property: Land or building (residential or commercial) 📊 TDS Rate Under Section 194IB 2% on rent if deducting since 01.10.2024 5% on rent if deducting before 01.10.2024 Activity Timeline TDS Deduction At payment or credit of rent for last month of tenancy/year Deposit of TDS Within 30 days from the end of the month of deduction TDS Return (Challan) Form 26QC (online) TDS Certificate to Landlord Form 16C , within 15 days of Form 26QC filing TAN Requirement ❌ Not required ⚠️ Important Points If landlord does not provide PAN , deduct T...

  Which exchange rate should i consider for conversion from USD to INR if i have sold shares listed in the USA? As per Rule 115 of the Income tax rule Exchange rate is decided as follows- the last date of the preceding month in which such capital gain is incurred. For example, if you sold shares on 15th Mar 2024, Then you need to use the 29th Feb 2024 exchange rate. Such exchange rate will be multiplied by the capital gain (U.S.D) to convert the value to INR. What Are RSUs? RSUs are stock-based compensation that vests over time based on predefined conditions, such as tenure, performance, or other company-specific criteria. Until the RSUs vest, the employee does not own the shares. Once vested, RSUs become taxable and can be sold at the employee’s discretion. Taxation of RSUs in India – Step-by-Step Guide Tax on Grant of RSUs At the time of grant, no tax liability arises since the employee does not have ownership rights yet. Tax on Vesting of RSUs RSUs are treated as a perquisite an...