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)

Education