TDS

[gattaca]

The BJP government is collecting TDS on everything. A year ago I sent some money to my dad. I got shocked to see they deducted TDS on the transfer from his bank. So even sending money to parents they are doing this. Middle class has been at the brunt of this TDS. Looking at the way they hurting middle class I don’t think BJP will not win next time. There was recent video where a customer was beating up bank employee for TDS on interests. 

[coffee_rules]

I have a NRE  Rupee checking account and transfer  $s to myself and then do a NEFT to my mother's account as a inra-bank xfer. . Never seen TDS on that. How do you do your remittances? Don't wire money from your US $ account directly yo a rupee SB account in India.

[gattaca]

1 hour ago, coffee_rules said:

I have a NRE  Rupee checking account and transfer  $s to myself and then do a NEFT to my mother's account as a inra-bank xfer. . Never seen TDS on that. How do you do your remittances? Don't wire money from your US $ account directly yo a rupee SB account in India.

Yes wired directly from my account to my dad and got TDS. But I don’t understand it is not earned income how are they charging TDS on a international transfer.

Edited December 9, 2024 by gattaca

[coffee_rules]

2 hours ago, gattaca said:

Yes wired directly from my account to my dad and got TDS. But I don’t understand it is not earned income how are they charging TDS on a international transfer.

Check if your dad's bank account is linked to Aadhar card and to PAN  card and from PAN Card to Aadhar card or some such weird Sitaraman rules to avoid TDS. If his total income is less than taxable bracket, you can claim the TDS back when you file a tax return. 

Edited December 9, 2024 by coffee_rules

[rkt.india]

11 hours ago, gattaca said:

Yes wired directly from my account to my dad and got TDS. But I don’t understand it is not earned income how are they charging TDS on a international transfer.

Your father can claim TDS back while filing ITR if the income is below tax slab.  If it is more then TDS will be adjusted towards his income tax when filing ITR.

Edited December 10, 2024 by rkt.india

[jigjig]

No way to avoid it. Any incoming transaction is going to have TDS deducted. If not being deducted your xfer agency is making a mistake.

[Stan AF]

15 hours ago, gattaca said:

The BJP government is collecting TDS on everything. A year ago I sent some money to my dad. I got shocked to see they deducted TDS on the transfer from his bank. So even sending money to parents they are doing this. Middle class has been at the brunt of this TDS. Looking at the way they hurting middle class I don’t think BJP will not win next time. There was recent video where a customer was beating up bank employee for TDS on interests. 

 

change meme to post

[mishra]

3 hours ago, jigjig said:

No way to avoid it. Any incoming transaction is going to have TDS deducted. If not being deducted your xfer agency is making a mistake.

Isnt that double taxation? Unless money is wire transferred directly as dividend from a business Account

[mishra]

20 hours ago, gattaca said:

The BJP government is collecting TDS on everything. A year ago I sent some money to my dad. I got shocked to see they deducted TDS on the transfer from his bank. So even sending money to parents they are doing this. Middle class has been at the brunt of this TDS. Looking at the way they hurting middle class I don’t think BJP will not win next time. There was recent video where a customer was beating up bank employee for TDS on interests. 

The money you transferred is effectively a gift to your parent. I think Bank has made a mistake. I transferred some money recently and there was no tds. Just a gst cost

Edited December 10, 2024 by mishra

[jigjig]

53 minutes ago, mishra said:

Isnt that double taxation? Unless money is wire transferred directly as dividend from a business Account

You can claim it back when filing returns. It is not a tax actually, just a tds to ensure the transaction is noted and will be declared while filing taxation

[mishra]

57 minutes ago, jigjig said:

You can claim it back when filing returns. It is not a tax actually, just a tds to ensure the transaction is noted and will be declared while filing taxation

I still think its wrong. if i transfer money into your account, the money i transfer is exactly what should be recieved. Bank can only charge transfer cost if any. How can it be tds. i believe their was some GST related tax, but that is on "service cost" of transfer and not tds.

Edited December 10, 2024 by mishra

[jigjig]

10 minutes ago, mishra said:

I still think its wrong. if i transfer money into your account, the money i transfer is exactly what should be recieved. Bank can only charge transfer cost if any. How can it be tds. i believe their was some GST related tax, but that is on "service cost" of transfer and not tds.

Yeah. I could be wrong . But on outward remittances over 7 L there is TCS which is deducted from overall tax liability while filing. So it isn't tax as such but a collection. I think the same is applicable for inward remittances also but I have never tried inward remittances in the near past

[jigjig]

21 hours ago, gattaca said:

The BJP government is collecting TDS on everything. A year ago I sent some money to my dad. I got shocked to see they deducted TDS on the transfer from his bank. So even sending money to parents they are doing this. Middle class has been at the brunt of this TDS. Looking at the way they hurting middle class I don’t think BJP will not win next time. There was recent video where a customer was beating up bank employee for TDS on interests. 

This should be TCS which will be deducted from your dad's overall tax liability when he shows that this is gift from a blood relative . So not a tax but tax collection 

[bowl_out]

19 hours ago, jigjig said:

No way to avoid it. Any incoming transaction is going to have TDS deducted. If not being deducted your xfer agency is making a mistake.

What about transfers to self? If I transfer to my own account in India and then transfer from that to my dad?

I did that recently using three different xfer agencies and I don't remember any of them charging a TDS

[jigjig]

16 minutes ago, bowl_out said:

What about transfers to self? If I transfer to my own account in India and then transfer from that to my dad?

I did that recently using three different xfer agencies and I don't remember any of them charging a TDS

Transfer from a foreign account to self on a savings account may also have a TCS. You can file a tax return and claim it . NRE or NRO account won't have TCS. Ideally you should have no savings account in India if staying abroad . From your Indian account to your dad's will have no TCS. If the amount is significant bank may notify Income tax dept of a large transaction .

 

Do confirm with a CA once though.

[mishra]

52 minutes ago, bowl_out said:

What about transfers to self? If I transfer to my own account in India and then transfer from that to my dad?

I did that recently using three different xfer agencies and I don't remember any of them charging a TDS

Actually I transferred some miney , to someone and nothing unusual was deducted 2-3 months back .  Bank has erred in this case i only paid fees

[rkt.india]

56 minutes ago, mishra said:

Actually I transferred some miney , to someone and nothing unusual was deducted 2-3 months back .  Bank has erred in this case i only paid fees

TCS is collected if amount is more than 7 lakh that is the tax slab in India.

Edited December 11, 2024 by rkt.india

[bowl_out]

1 hour ago, jigjig said:

Transfer from a foreign account to self on a savings account may also have a TCS. You can file a tax return and claim it . NRE or NRO account won't have TCS. Ideally you should have no savings account in India if staying abroad . From your Indian account to your dad's will have no TCS. If the amount is significant bank may notify Income tax dept of a large transaction .

 

Do confirm with a CA once though.

Correct. It was from a US bank account to an NRE account and then to my dad's S/B account.

I don't have any resident accounts in India

[Lord]

Thats why its called Tax Deducted by Sitharaman

[Lord]