Finance
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 September 2014
what is minority intrest? where did post it? can you explain brefly
05 September 2014
When a parent company owns a controlling interest ( more than 50%) in a subsidiary but does not own 100%, than remaining shareholder in the subsidiary constitute minority interest. Minority shareholder have claim on the earnings and net assets of the subsidiary.
Minority interests should be presented in the consolidated balance
sheet separately from liabilities and the equity of the parent’s shareholders.
Minority interests in the income of the group should also be separately
presented.
Minority interests should be presented in the consolidated balance
sheet separately from liabilities and the equity of the parent’s shareholders.
Minority interests in the income of the group should also be separately
presented.
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Querist : Anonymous
Querist :
Anonymous
(Querist)
02 June 2015
What is the TDS .how to calculate tds what are the journal entries for TDS. Can any one explain please.
24 July 2024
TDS (Tax Deducted at Source) is a mechanism introduced by the Income Tax Department of India to collect tax at the source from where income is generated. It is applicable to various payments such as salaries, interest, rent, commission, professional fees, etc. TDS ensures that tax is deducted in advance and deposited with the government, thereby preventing tax evasion.
### How to Calculate TDS:
1. **Identify Applicable Section**: Determine the relevant section of the Income Tax Act under which TDS is applicable based on the nature of payment and threshold limits.
2. **Rate of TDS**: Refer to the TDS rates specified by the Income Tax Department. Rates can vary based on the type of payment, status of the payee (individual, company, etc.), and nature of income.
3. **Calculate Taxable Amount**: Determine the taxable amount on which TDS needs to be deducted. Generally, TDS is deducted on the gross amount paid, excluding GST if applicable.
4. **Apply TDS Rate**: Multiply the taxable amount by the applicable TDS rate to compute the TDS amount.
### Journal Entries for TDS:
The journal entries for TDS involve recording the deduction, payment to the government, and adjusting the TDS liability in the books of accounts. Here’s a typical example:
#### 1. Deduction of TDS:
Assume TDS of Rs. 10,000 is to be deducted on professional fees paid of Rs. 1,00,000.
**Journal Entry:**
```
Professional Fees A/c Dr. 1,00,000
To TDS Payable A/c 10,000
To Professional Fees Payable A/c 90,000
(Being professional fees of Rs. 1,00,000 paid, TDS of Rs. 10,000 deducted and Rs. 90,000 net payable)
```
#### 2. Payment to Government:
After deducting TDS, the TDS amount needs to be deposited with the government.
**Journal Entry:**
```
TDS Payable A/c Dr. 10,000
To Bank A/c 10,000
(Being TDS payment made to the government)
```
#### 3. Adjustment at Year-End (if applicable):
At the end of the financial year, reconcile TDS deducted and paid with the TDS returns filed. Adjust any differences accordingly.
**Journal Entry (if there is any adjustment required):**
```
TDS Payable A/c Dr./Cr. (depending on adjustment needed)
To TDS Receivable A/c Cr./Dr.
(Being adjustment made for TDS receivable/payable at year-end)
```
### Important Points to Note:
- **Due Dates**: TDS deductions should be deposited timely to avoid interest and penalties.
- **TDS Returns**: Quarterly TDS returns (e.g., Form 26Q for salaries, Form 26Q for non-salary payments) need to be filed with the Income Tax Department.
- **Form 16/16A**: Provide Form 16 to employees and Form 16A to non-employees as a certificate of TDS deduction.
Understanding TDS and its implications is crucial for compliance with tax laws in India. Consulting with a tax advisor or accountant can provide tailored guidance based on specific scenarios and updates in tax regulations.
### How to Calculate TDS:
1. **Identify Applicable Section**: Determine the relevant section of the Income Tax Act under which TDS is applicable based on the nature of payment and threshold limits.
2. **Rate of TDS**: Refer to the TDS rates specified by the Income Tax Department. Rates can vary based on the type of payment, status of the payee (individual, company, etc.), and nature of income.
3. **Calculate Taxable Amount**: Determine the taxable amount on which TDS needs to be deducted. Generally, TDS is deducted on the gross amount paid, excluding GST if applicable.
4. **Apply TDS Rate**: Multiply the taxable amount by the applicable TDS rate to compute the TDS amount.
### Journal Entries for TDS:
The journal entries for TDS involve recording the deduction, payment to the government, and adjusting the TDS liability in the books of accounts. Here’s a typical example:
#### 1. Deduction of TDS:
Assume TDS of Rs. 10,000 is to be deducted on professional fees paid of Rs. 1,00,000.
**Journal Entry:**
```
Professional Fees A/c Dr. 1,00,000
To TDS Payable A/c 10,000
To Professional Fees Payable A/c 90,000
(Being professional fees of Rs. 1,00,000 paid, TDS of Rs. 10,000 deducted and Rs. 90,000 net payable)
```
#### 2. Payment to Government:
After deducting TDS, the TDS amount needs to be deposited with the government.
**Journal Entry:**
```
TDS Payable A/c Dr. 10,000
To Bank A/c 10,000
(Being TDS payment made to the government)
```
#### 3. Adjustment at Year-End (if applicable):
At the end of the financial year, reconcile TDS deducted and paid with the TDS returns filed. Adjust any differences accordingly.
**Journal Entry (if there is any adjustment required):**
```
TDS Payable A/c Dr./Cr. (depending on adjustment needed)
To TDS Receivable A/c Cr./Dr.
(Being adjustment made for TDS receivable/payable at year-end)
```
### Important Points to Note:
- **Due Dates**: TDS deductions should be deposited timely to avoid interest and penalties.
- **TDS Returns**: Quarterly TDS returns (e.g., Form 26Q for salaries, Form 26Q for non-salary payments) need to be filed with the Income Tax Department.
- **Form 16/16A**: Provide Form 16 to employees and Form 16A to non-employees as a certificate of TDS deduction.
Understanding TDS and its implications is crucial for compliance with tax laws in India. Consulting with a tax advisor or accountant can provide tailored guidance based on specific scenarios and updates in tax regulations.
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