TDS

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WIZKID

CONSULTANCY AND FINANCIAL SERVICES PVT. LTD.

1 AWARENESS WORKSHOP ON TDS/TCS AT SKICC

2TAX DEDUCTION AT SOURCE (TDS)

3 TDS : TAX DEDUCTION AT SOURCE Persons responsible for making payment of income are liable to deduct tax at source from such payment at specified rates and deposit the same to income tax department within stipulated period of time.

4 TDS : TAX DEDUCTION AT SOURCEThe recipient of income, though he gets only the balance amount (after deduction of tax), is liable to be taxed on the gross amount (not the balance amount) and the tax deducted at source is adjusted against his tax liability.

5 OBJECTIVES OF TDSRegular inflow of Revenue for GOVERNMENT.Checking of TAX EVASION.Widening of TAX BASE.

6 OBJECTIVES OF TDSAssesses pays tax in the assessment year on the income earned in previous year. Due to this rule the tax collection is delayed till the completion of the previous year. Even sometimes people conceal their Income and tax is not paid at all.

7 NATURE OF PAYMENTSS.192SalaryS.193Int.-Sec.S.194DividendS.194AOther Int.194BLot/CW194BBHorse rac.194CContract194DIns. Com.194ENR Sports194EENSS194FMF/UTI194GCom.Lot.194HCom/Brok194IRent194JProf/Tec.194K,194LAUnits/C.Acq

8 PERSONS RESPONSIBLE FOR DEDUCTIONS (PAYER)ALL PERSONS (Except Individuals & HUF in certain cases)

9Contd..W.E.F. 01-06-2002, INDIVIDUAL & HUF have to deduct tax at source if turnover exceeds :

While making Payment U/S : Rs. 40 Lacs (Business) Rs.10 Lacs (Profession) 194A (other Interest) 194C (Contract) 194H (Commission / Brokerage) 194I (Rent) 194J (Professional Fees)

10 SPECIFIED DEDUCTEE (PAYEE) All Persons Except - Quantum of payment is less than the prescribed limit.General exemption u/s.10 or specific exemption in respective TDS provision.Certificate issued by A.O. u/s.197.Declaration in form 15G and 15H.

11 DEDUCTION OF TAXTax is to be deducted at the time of credit or at the time of payment whichever is earlier, at the prescribed rate. In the case of salary, TDS is on estimated income. In the case of payments other than salary, the TDS is on payments.Tax to be Deducted at 20% if PAN is not quoted by deductee.Surcharge and Education Cess will be deductible only upto 30.09.2009.

12 DEPOSIT OF TAX-1 In the case of SALARY Within One Week (7- days) from the end of the Month.

13 DEPOSIT OF TAX-2 In case of Payments Other Than salary Within ONE WEEK from the end of the month.Payments credited or paid on 31st March (last date of Accounting Year), within two months.

14 DEPOSIT OF TAX-3Quarterly Payments in Special Cases.15th June, 15th Sept., 15th Dec., 15th Mar.Prior approval of JCIT.

15TAN:TAX DEDUCTION ACCOUNT NUMBERThe person responsible for deducting tax at source has to apply for TAN in Form No.49B within one month from the end of the month in which tax is deducted for the first time.

The TAN should be quoted in all challans, Certificates, Quarterly Returns, statements and correspondence.Reformatted TAN.

16 ISSUE OF TDS CERTIFICATES- (S 203 / R 31) The person responsible for deducting tax at source has to issue TDS certificates before the prescribed date Normally, within One Month from the end of the month in which the tax was deducted at source.

17Contd..If the non-salary payment is credited or paid on 31st March then the TDS will be deposited by 31st May in such cases certificate should be issued by 7th of June.In case of consolidated certificate, within One Month from the end of the Financial Year.

18ISSUE OF TDS CERTIFICATES -(S 203 / R 31)FORM NO.PARTICULARS1612BASalary Perquisites (Gross salary >1,50,000)16ANon-Salary16AASalary-cum-Return of income(Gross salary