Our Correspondent:
Kohima | August 25
The Commissioner of Income Tax (TDS) of the North East Region today organized a seminar on tax deduction-at-source, at Hotel Japfu with the Treasury Officers of Nagaland. Addressing the gathering OSD of Finance V Kezo said paying tax to the government is the first and foremost duty of the citizens of the country. He said people should know the time to pay tax. 70% of the income collected comes back to the state, Kezo said.
Commissioner of income Tax, D.P Haokip said Nagaland has a very poor remark in contribution to income tax. Emphasizing on the targeted amount of income to be generated from a particular state, Haokip said Nagaland has a target of Rs. 4.59 lakhs for the financial year 2009-2010. But the state has made only up to Rs. 20,668 which is very poor.
Government of India has fixed 3500 crore as pay-back from the North-Eastern region where Assam generates the highest, 35 crore, said Hoakip. Tax must be deducted at the time of payment in cash or cheque or credit to the payee's account whichever is earlier, he said. Officers are urged to be careful as 70% of income tax comes to the state government for development.
According to the Income Tax report, Nagaland does not seem to be very responsive as there is a huge gap between the target and the income generated. Officials said the anomaly could be the result of lack of awareness.
The report said defaulters have to bear deducted-at-source 20% if the permanent account number (of PAN) for payment is liable to the TDS. On Rent Tax, any amount paid as rent above Rs. 120000 per year will attract TDS provisions at 10% for Individuals and HUF and 20% for others. (TDS will be 2% for the use of any machinery or plant or equipment). However from 1st July 2010, any amount paid as rent above Rs. 180000 per year will attract TDS provisions at 10% for Individual & HUF and 20% for others.
On Salary, DDOs must calculate the tax payable by an employee for the year and start deducting tax at average rates. Salary includes wages, any annuity or pension, gratuity, any fees, commission, perquisites or profits in lieu of or in addition to any salary or wages. The income from salaries is required to be computed on estimated basis at the beginning of each financial year, taking into account salaries or remuneration paid or allowed.
For Contracts (including work land labor contract), the tax has to be deducted is at 2% on contract payments and 1% for subcontract and advertisement contract payments. The tax is required to be deducted if a single payment exceeds Rs. 20000 or if the aggregate payments exceed Rs. 50000 per annum.
(However from 1st July 2010, Rate of deduction is at 2% on all contract payments including subcontract and advertisement contract payments. The tax is required to be deducted if a single payment exceeds Rs. 30000 or if the aggregate payments exceed Rs. 75000 per annum).
