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TMI BlogThis may reduce your tax liability or lead to a refund if excess tax is deducted.X X X X Extracts X X X X X X X X Extracts X X X X ..... This may reduce your tax liability or lead to a refund if excess tax is deducted. X X X X Extracts X X X X X X X X Extracts X X X X ..... Return. What do you mean by Section 194F of the Income Tax Act? This phase applies to non-residents and foreign corporations, ensuring taxes are collected upfront on transactions that are hard to track. Key Provisions of Section 194F 1. Applicability: Section 194F applies when a non-resident transfers an extended-time period capital asset to a resident. 2. Rate of Tax: The tax is deducted at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fee of 20%, that's the standard rate for long-term period capital gains below the Income Tax Act. 3. Threshold Limit: Unlike other sections, there may be no minimum threshold restriction for the applicability of Section 194F. Any transaction involving the switch of long-term capital assets is a difficulty to this provision. 4. Exemption: This phase no longer applies to transactions where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e asset is transferred in a way that is not difficult to capital profits tax, which include certain reorganizations or mergers. Impact on Your Income Tax Return 1. TDS Deduction: The tax deducted at supply may be referred to for your Form 26AS, and you'll want to encompass it for your income tax return. 2. Capital Gains Reporting: The profits from the capital asset ought to be said below an app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ropriate head (e.g., "Income from Capital Gains"). You'll also need to account for the TDS in this phase. 3. Claiming Credit for TDS: Since TDS is deducted at source, you may claim a credit for the amount deducted. 4. Impact on Foreign Transactions: Section 194F ensures non-resident taxpayers' tax duties are managed by the payer, simplifying compliance with Indian tax laws. Conclusion Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 194F of the Income Tax Act guarantees that tax on long-term capital profits arising from the transfer of belongings is deducted at the supply, accordingly simplifying the taxation system for non-residents.
Reply By deepak gulati as =
Is this Section (194F) correct
Dated: 14-2-2025 X X X X Extracts X X X X X X X X Extracts X X X X
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