Astrologers in India, like other professionals, are subject to Tax Deducted at Source (TDS) if their income exceeds certain thresholds. TDS is deducted by clients or organizations when they make payments to astrologers for services rendered. If the astrologer actual tax liability in the income tax return, is less than TDS deducted, you are entitled to claim a refund. Here’s a step-by-step guide on how astrologers can claim a TDS refund in India:
1. Understand When TDS is deducted for Astrologers
TDS is typically deducted under Section 194J of the Income Tax Act, 1961, which applies to professional or technical services. For astrologers, TDS is deducted at 10% if the payment exceeds ₹30,000 in a single transaction or aggregate during the financial year. If you do not provide your PAN (Permanent Account Number), the TDS rate increases to 20%. If your PAN is not linked to Adhaar, then also 20% TDS is deducted.
2. Ensure You Have a PAN
An astrologer must have a valid PAN, to claim a TDS refund. Your PAN is linked to all TDS deductions, and it is essential for filing your income tax return (ITR).
3. Verify TDS Deductions through Form 26AS or AIS
Before claiming a refund, verify the TDS deducted and deposited against your PAN. You can do this by checking:
- Form 26AS: Available on the Income Tax e-Filing portal, this form shows all TDS deductions linked to your PAN.
- Annual Information Statement (AIS): AIS provides a comprehensive view of your financial transactions, including TDS.
- TDS certificates: The company must provide a TDS certificate to the astrologers, wherein the astrologer can verify his TDS details.
If the TDS details are missing or incorrect, contact the deductor (the person or organization that deducted TDS) to rectify the issue.
4. File Your Income Tax Return (ITR)
An astrologer must have a valid PAN, to claim a TDS refund. You must file your income tax return. Here’s how:
Step 1: Choose the Correct ITR Form
Astrologers typically file ITR 1, ITR-3 or ITR-4, depending on their income sources:
- ITR-1: Astrologer can file ITR 1and showhis income in other sources.
- ITR-3: An Astrologer can also file ITR-3, as their income from astrology considers as income from business or profession.
- ITR-4 (Sugam): An Astrologer can also opt for the presumptive taxation scheme under Section 44AD (If turnover is upto 2 crore).In which he can declare presumptive income at 8% for cash receipts and 6% for digital receipts.
Step 2: Report Your Income and TDS Details
- Astrologer should report income from astrology under the head “Profits and Gains from Business or Profession.”
- Provide details of TDS deducted, as shown in Form 26AS or AIS.
Step 3: Calculate Your Tax Liability
- Astrologer should calculate his business income and tax liability thereupon.
- If the tax liability is less than TDS deducted, the excess amount will be refunded.
Step 4: File Your ITR
- File your ITR online through the Income Tax e-Filing portal (https://www.incometax.gov.in/).
- Use your net banking credentials, Aadhaar OTP, or a digital signature certificate (DSC) to e-verify your return.
5. Claim the Refund in Your ITR
While filing your ITR, astrologer should ensure provide correct bank account details (preferably a savings account) for the refund. When your income tax return will be processed by the Income Tax Department and Your account will be credited by the refund amount.
6. Track Your Refund Status
After filing your ITR, you can track the status of your refund:
- Visit the Income Tax e-Filing portal.
- Go to “View Returns/Forms” and select “Income Tax Returns.”
- Click on “Acknowledgement Number” to check the status.
- Alternatively, use the “Refund Status” option under the “My Account” section.
7. Rectify Errors (if any)
If your refund is delayed or not processed, it could be due to errors in your ITR or mismatched TDS details. In such cases:
- File a revised return (if there are errors in the original ITR).
- Contact the deductor to ensure the TDS details are correctly updated in Form 26AS.
8. Presumptive Taxation Scheme (Section 44ADA)
If your gross receipts as an astrologer are less than ₹50 lakh, you can opt for the presumptive taxation scheme under Section 44ADA. Under this scheme:
- One should assume one’s income is 50% of your gross receipts.
- There is no need to maintain detailed books of accounts.
- TDS deducted can still be claimed as a refund if it exceeds your tax liability.
9. Important Points to Remember
- File ITR on Time: The deadline for filing ITR is usually July 31 (unless extended). Late filing may attract penalties.
- E-Verify Your Return: Ensure your ITR is e-verified within 30 days of filing to avoid delays in refund processing.
- Maintain Records: Keep all invoices, receipts, and TDS certificates (Form 16A) for future reference.
10. Conclusion
Claiming a TDS refund as an astrologer in India is a straightforward process if you follow the correct steps. Ensure you file your income tax return accurately, verify TDS details, and provide the correct bank account information for the refund. By staying compliant with tax regulations, you can avoid unnecessary delays and enjoy the benefits of your hard-earned income.
If you are unsure about the process, consider consulting a tax professional or chartered accountant for guidance. Happy stargazing and smooth tax filing!