Why is it called pin money?
Why is it called pin money?
“Pin money” was never intended to be spent entirely on pins, no matter how expensive they might have been; the term was simply verbal shorthand for “household allowance.” What’s interesting about the term “pin money” is that it originally meant a hefty chunk of change.
What is pin money definition?
1a : money given by a man to his wife for her own use. b : money set aside for the purchase of incidentals.
What is pin money in income tax?
Pin Money means “A reasonable allowance given to the wife by her husband for her dress and usual household expenses” Pin Money is not taxable.
What is pin money Wikipedia?
pin money (uncountable) (historical) An allowance of money given by a man to his wife or to other dependents for their personal, discretionary use. [ from 16th c.]
What does PIN stand for?
Personal Identification Number
Is pin money income if not then why?
Pin Money is not Taxable. u/s 64(1) (iv) of the Income Tax Act-1961, any income arising from assets transferred to spouse without adequate consideration is taxable in the hands of the transferor and not in the hands of transferee.
How much money can a husband give his wife tax free?
There is no restriction on husband giving any money out of his income to his wife but you cannot claim any tax benefits in respect of money gifted to your wife. You will have to pay full tax on your income because gifting of money, out of your income, is treated as application of income.
What TDS means?
Tax Deducted at Source
Who is eligible for TDS?
But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited. However, in case of rent payments made by individuals and HUF exceeding Rs 50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not liable for a tax audit.
What is TDS example?
As the name suggests, the concept of TDS is to deduct tax at its source. Let us take an example of TDS assuming the nature of payment is professional fees on which the specified rate is 10%. ABC, then XYZ Ltd shall deduct a tax of Rs 5,000/- and make a net payment of Rs 45,000/- (50,000/- deducted by Rs 5,000/-) to Mr.
What is TDS full name?
Income Tax Department > Tax Deducted at Source (TDS)
How is TDS calculated?
The TDS to be deducted by dividing the estimated tax liability of the employee for the financial year by the number of months of his employment under the particular employer. However, if you do not have PAN, TDS shall be deducted at the rate of 20% (excluding education cess and higher education cess).
What is TDS rate?
| Nature of payment | Section of the Income-tax Act | TDS rate effective from April 1, 2021 |
|---|---|---|
| Commission or brokerage received except for Insurance Commission | Section 194H | 5% |
| Payment made while purchasing land or property | Section 194IA | 1% |
| Payment of rent by individual or HUF exceeding Rs. 50,000 per month | Section 194IB | 5% |
How can I get TDS?
You need to file a TDS refund claim when the employer has deducted more tax than the actual liability. You can claim the difference amount by filing an income tax return. You will have to provide the bank account number, name of the bank, and Indian Financial System Code (IFSC) details for successful processing.
Can we withdraw TDS amount?
Tax Deducted at Source (TDS) is the sum that is deducted from a taxpayer’s income like salary, interest from bank accounts, rent etc. If the TDS collected is more than what you owe to the government, you can get a TDS Refund.
What is full form of TDS in water?
Total dissolved solids (TDS) is the term used to describe the inorganic salts and small amounts of organic matter present in solution in water. The principal constituents are usually calcium, magnesium, sodium, and potassium cations and carbonate, hydrogencarbonate, chloride, sulfate, and nitrate anions.
How much is TDS on salary?
TDS Rate Chart
| Annual Income | Tax Rates |
|---|---|
| Up to Rs.3,00,000 | Nil |
| Rs.3,00,001-Rs.5,00,000 | 5% |
| Rs.5,00,001-Rs./td> | Rs.10,00 + 20% of income above Rs 5 lakhs |
| Above Rs./td> | Rs.1,10,000 + 30% of income above Rs 10 lakhs |
Is TDS refundable on salary?
There is no form or specific process to claim TDS refunds. The deductee needs to file the income tax returns usually only. However, if there is any excess of TDS on salary charged, what the employee is supposed to pay in the given year, then the refund amount will be due and will need to be shown in the returns filed.
At what amount TDS is deducted?
TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5% to 30% which is equivalent to the applicable income tax slabs.
Why is TDS required?
TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.
Who issues the TDS certificate?
Form 16/ 16A is the certificate of deduction of tax at source and issued on deduction of tax by the employer on behalf of the employees. These certificates provide details of TDS / TCS for various transactions between deductor and deductee. It is mandatory to issue these certificates to Tax Payers.
How many types of TDS is there?
two types
How much is TDS on rent?
What is the Rate of TDS?
| S. No | Nature of Payment | Rates of tax deduction |
|---|---|---|
| 1 | Rent of plant and machinery | 2% |
| 2 | Rent of land or building or furniture or fitting | 10% (5% if rent exceeding Rs 50,000 / month is paid by individual/HUF who are not liable for tax audit) |
Does post office deduct TDS?
In case total cash withdrawal from all post office accounts exceeds Rs 1 crore in one financial year then TDS at 5 per cent will be payable on the amount exceeding Rs 1 crore. The respective Post Office of the depositor will deduct TDS and the account holder will be informed about the deduction.
Is money safe in post office?
“Irrespective of the amount of deposit, the safety in post office FD is the highest as they are backed by a government guarantee,” say experts. Additionally, investments made under the 5-year fixed deposit account qualify for income tax benefits under Section 80C of the Income Tax Act, 1961, according to India Post.
How much money can be deposit in post office?
And now the limit has been hiked from ₹5,000 to ₹20,000 per customer. The move is aimed at increasing post office deposits over time. 2) No branch postmaster (BPM) shall accept cash deposit transaction for more than ₹50,000 in an account in a day.
What is the maximum limit of MIS in post office?
5. Comparing Post Office MIS with other Monthly Income Plans
| POMIS | Monthly Income Mutual Fund | Monthly Income Insurance |
|---|---|---|
| Limit of Rs. 4.5 lakhs per account and Rs. 9 lakhs for a shared account | No investment limit | No investment limit |
Can I double my money in 5 years?
Similarly, if you want to double your money in five years, your investments will need to grow at around 14.4% per year (72/5). PPF at an annual interest rate of 7.1% will take around 10 years to double your money assuming the interest rate remains at 7.1% (72/7.1 =10.14).
Which is better MIS or FD?
Cash earnings The cash flow earnings from a MIS can vary over time as the earnings vary with market fluctuations. So if you are looking to get surety in terms of interest, an FD is right for you; if you are open to ups and downs in the money you make, choose MIS.