TDS

Tax Deduction at Source

Presented By:Chandan Kumar Gupta
Chander Kishor
Jatin Valia
Naveen

http://ourCAgang.blogspot.in

Contents
1.
2.
3.
4.
5.
6.
7.
8.

Introduction
Basics
Deduction of Tax
Due Dates
TDS Payments
Return Filing
Fees/Interest/Penalty
TDS Certificate

http://ourCAgang.blogspot.in

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.
http://ourCAgang.blogspot.in

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
http://ourCAgang.blogspot.in

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).

http://ourCAgang.blogspot.in

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.
http://ourCAgang.blogspot.in

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.
http://ourCAgang.blogspot.in

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
http://ourCAgang.blogspot.in

Section 194 (TDS on Deemed Dividend):

Rate:@ 10%

Limit: Rs. 5,000.

Deduction at the time of credit or payment whichever

is earlier.
Deemed dividend as under section 2(22)(e).

http://ourCAgang.blogspot.in

Section 194A (TDS on Interest other than securities):

Rate:@ 10%

Limit:
For banking co.-Rs. 10,000

For other Rs. 5,000

Deduction at the time of credit or payment whichever
is earlier.

http://ourCAgang.blogspot.in

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

http://ourCAgang.blogspot.in

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

Deduction at the time of credit or payment whichever
is earlier.
http://ourCAgang.blogspot.in

Section 194D (TDS on Insurance Commission):

Rate: @ 10%
Limit: RS. 20,000
Section 194E (TDS on NR Sport Person/Association):
Rate: @ 20%
Amount: Any payment made

Section 194EE (TDS on Withdrawals from NSS):

Rate: @ 20%
Limit: RS.2,500
http://ourCAgang.blogspot.in

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

http://ourCAgang.blogspot.in

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.
http://ourCAgang.blogspot.in

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

http://ourCAgang.blogspot.in

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%
http://ourCAgang.blogspot.in

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

http://ourCAgang.blogspot.in

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)
http://ourCAgang.blogspot.in

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)

http://ourCAgang.blogspot.in

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 compuTDS
FVU (File Validation Utility) file generated from the
software/ utility to be submitted to TIN-FC alongwith
Verification Form (Form 27A)

http://ourCAgang.blogspot.in

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

http://ourCAgang.blogspot.in

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

http://ourCAgang.blogspot.in

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

http://ourCAgang.blogspot.in

http://ourCAgang.blogspot.in