TDS (Tax Deducted at Source)

TDS
Tax Deduction at Source
Presented By:-
Chandan Kumar Gupta
Chander Kishor
Jatin Valia
Naveen
http://ourCAgang.blogspot.in

Contents
1. Introduction
2. Basics
3. Deduction of Tax
4. Due Dates
5. TDS Payments
6. Return Filing
7. Fees/Interest/Penalty
8. TDS Certificate

Introduction
●It is not another type of Tax rather a way of collection of
Income tax.
●A form of advance tax.
●This concept was first introduced in 2004 on the
principle of “pay as you earn”
●Onus of compliance on Payer (who makes the
expenditure) instead of actual taxpayer i.e assesse
under Income Tax Act 1961.

Basics
Payer deducts tax from payment/credited
Payer deposit tax to Govt
Payer file Return of TDS
Payer issues TDS Certificate to Payee
Payee claims refund of TDS in his ITR

●TAN (Tax deduction Account Number): Every
deductor/payer to obtain TAN except who deduct Tax on
payment for property purchased.
●Composition of TAN: DELH90468K
●Form 49B to be submitted at any TIN-FC (Charges-Rs. 62)
●TAN is used in any TDS related matters (such as
Return/TDS Deposit).

Deduction of Tax
●Tax has to be deducted @ specified in relevant section.
●Deductor must have PAN of Payee.
●Tax has to be deducted at higher rate (i.e.20 %) in case
non-availability of PAN (Section 206AA).
●Non deduction/Lower Deduction u/s 197/197A
●Form 15G/15H- Self declaration
●Form 13 – Certificate from AO
●Non deduction of TDS of any payment made to RBI,
Govt., Corporation by central act.

●Section 192 (TDS on Salary):
●Rate: Average rate of Tax payable for FY
●Limit: bujho to jane
●Deduction at the time of payment/credit every month
●Amount of Tax:
●estimated tax for FY/12 month
●For the month of March=Actual Tax Payable-Tax Paid
●Consider: Salary from previous employer & Income from
other sources
●Salary means Salary as under section 17.

●Section 193 (TDS on Interest on Securities):
●Rate:@ 10%
●Limit:
●On debenture- Rs. 5,000
●On others- Rs. 10,000
●Deduction at the time of credit or payment whichever
is earlier.
●Exempt from provision: NDDB, NSC, Gold Bonds,
Govt securities

●Section 194 (TDS on Deemed Dividend):
●Rate:@ 10%
●Limit: Rs. 5,000.
is earlier.
●Deemed dividend as under section 2(22)(e).

●Section 194A (TDS on Interest other than securities):
●Rate:@ 10%
●Limit:
●For banking co.-Rs. 10,000
●For other –Rs. 5,000
is earlier.

●Section 194B (TDS on lottery/CrosswordnPuzzle):
●Rate:@ 30%
●Limit:- Rs. 10,000
●At the time of payment/credit in cash or kind
●Section 194BB (TDS on Winnings from Horse Race):
●Rate:@ 30%
●Limit:- Rs. 5,000

●Section 194C (TDS on Contracts):
●Rate:
●Transporter with valid PAN @ 0%
●Individual/HUF @ 1%
●Others @ 2%
●Limit:
●Any single sum credited/paid >= Rs. 30,000 or
●Total Sum credited/paid during FY >= Rs. 75,000
is earlier.

●Section 194D (TDS on Insurance Commission):
●Rate: @ 10%
●Limit: RS. 20,000
●Section 194EE (TDS on Withdrawals from NSS):
●Rate: @ 20%
●Limit: RS.2,500
●Section 194E (TDS on NR Sport Person/Association):
●Rate: @ 20%
●Amount: Any payment made

●Section 194F (TDS on Repurchase by MF/UTI):
●Rate: @ 20%
●Amount: Any amount on termination/repurchase of
unit by MF/UTI (prev. deduction u/s 80CCB)
●Section 194G (TDS on commission on Sale of Lottery
Tickets:
●Rate: @ 10%
●Limit: Rs. 1,000

●Section 194H (TDS on commission/brokerage (other
than Section 194D & 194G:
●Rate: @ 10%
●Limit: Rs. 5,000
●Section 194I (TDS on Rent):
●Rate:
●On Plant & Machinery- @ 2%
●On Land, Building & Furniture- @ 10%
●Limit: Rs. 1,80,000 p.a.

●Section 194IA (TDS on Purchase of Immovable
Property):
●Rate: @ 1%
●Limit: Rs. 50,00,000
●Amount: Lumpsum or Installment
●Section 194J (TDS on Professional/ Technical fees):
●Rate: @ 10%
●Limit: Rs. 30,000

●Section 194L (TDS on Compulsory Acquisation of
Capital Assets):
●Rate: @ 10%, Limit: Rs. 1,00,000
●Section 194LA (TDS on Compulsory Acquisation of
Property):
●Rate: @ 10%, Limit:- Rs. 2,00,000
●Section 194LB (TDS on Interest paid ti NR from
Infrastructure Debt Fund):
●Rate: @ 5%

●Section 194LC (TDS on Interest from Indian
Company to NR or Foreign Company):
●Rate: @ 5%
●Section 195 (TDS on Amount paid to Non-Resident):
●Rate: @ different rate provided in section 195 and
DTAA with that country whichever is beneficial for
Deductee

Due Dates
●TDS Payment: (Rule 30(1))
●on every 7day of next month
●TDS of March- 30th April
●TDS Return:
●Every 15th day of following quarter
●Return of Q4- 15th of May
●Issuance of TDS Certificate(Rule 31):
●Within 15 days from due date of TDS Return (Non- Salary)
●Within 15 days from due date of TDS Return of Q4 (Salary)

TDS PAYMENTS
● Challan: in challan no. 281
● Only online payment to be made
● TDS on Property to be paid along with Return in
Form 26QB (within 7th day of the following month)

Return Filing
● Return can only be made electronic form as per
scheme launched in 2003.
● RPU (Return preparer utility is made available by
NSDL for processing of TDS Return)
● Based on RPU, a number of software are available
in market for processing of Return such as compu-
TDS
● FVU (File Validation Utility) file generated from the
software/ utility to be submitted to TIN-FC alongwith
Verification Form (Form 27A)

List of Form used in Return
● Form 24Q-Salary
● Form 26Q- Non Salary
● Form 26QB- TDS on Property
● Form 27Q- Other than Salary to Non Resident

TDS CERTIFICATE
● Form 16- Salary
● Form 16A- Non Salary
● Form 16B- TDS on Property

Fees/ Interest/ Penalty
● For Return Filing/uploading at NSDL:
● Upto 100 entries:- RS. 35
● Upto 1000 entries:- Rs. 200
● More than 1000 entries:- 600
● For late payment of TDS:- 1.5 % p.m
● For late filing of TDS Return:-
● Rs. 200 per day or
● Amount equal to TDS amount in the quarter
● Whichever is lower

TDS (Tax Deducted at Source)

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