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OVERVIEW OF TDS
By
C.A. Manish Jathliy
OVERVIEW OF TDS
What is TDS
TAN
TDS defaults
Consequences of Defaults
Penalty Provisions
General Information
What is TDS
In simple terms, TDS is the tax getting deducted from the person receiving
the amount (Employee/Deductee) by the person paying such amount
(Employer/Deductor).
Every
Principal Officer of a company for TDS purpose including the employer in case of
private employment or an employee making payment on behalf of the employer.
DDO (Drawing & Disbursing Officer), In case of Govt. Office any officer
designated as such.
In the case of "interest on securities" other than payments made by or on behalf
of the Central govt. or the State Government, it is the local authority, corporation
or company, including the Principal Officer thereof.
Such
person is called Deductor while the person from whom the tax is
deducted is called Deductee.
Tax must be deducted at the time of payment in cash or cheque or credit
to the payee's account whichever is earlier. Credit to payable account or
suspense account is also considered to be credit to payee's account and
TDS must be made at the time of such credit.
TAN
unique
Sl.
No
.
Section
Nature of Payment
Cut OffAmount
AY 2017-18
Yearly
Rate %
HUF/IN
D
Limit
Others
192
Salaries
192A
193
194
Interest on Securities
Interest on Debenture
Deemed dividend
10000
5000
2500
10
10
10
10
10
10
194A
10000
10
10
5A
194A
5000
10
10
194B
10000
30
30
194BB
10000
30
30
8
9
10
194C(1)
194C(2)
194D
Contracts
Sub-contracts/ Advertisements
Insurance Commission
30000
30000
15000
100000
100000
1
1
5
2
2
5
11
12
194DA
194EE
100000
2500
1
10
1
-
13
14
194G
194H
5
5
5
5
15000
15000
15
194I
180000
10
10
180000
50,00,000
81
30000
10
10
250000
10
10
fittings)
194IA
17
194J
18
194LA
Exceptions/Notes:
TDS at higher rate (i.e., 20%)has to be made if the deductee does not provide
PAN to the deductor
Ces
s
No
3%
15%
3%
Non- Corporate
Any
No
No
Non- Corporate
Any
No
No
No
3%
No
3%
15%
3%
Co Oeprative
Society Firm
12%
3%
NON Domestic
Company
2%
5%
3%
3%
Resi Individual
dent
Individual
Non- Individual
Resi
dent Individual or HUF
or AOP or BOI or
every Artificial
Juridicial Person
Payment
1
Surcharg
0
1
1
1
2
Note
1
3
1
4
Sl. No.
Quarter ended On
Date of payment
30th June
7th July
30the September
7th October
31st December
7th January
31st March
30th April
1
5
Vide NotificationNo. 238/2007, dated 30-82007, following persons are liable to file etds/e-tcs return:
1) All
Government department/office;
2) All companies
3) All persons who are required to get their
accounts audited under section 44AB in the
immediately preceding financial year;
4) All persons where the number of Deductees
records in a quarterly statement for any
quarter of the immediately preceding
financial year is equal to or more than 20.
1
6
Due date e-tds return 24Q, 26Q, 27Q and Form16 ,Form 16A
Sl. No.
Quarter ending
Return
For other deductors
Etds return
Form 16A
Form 16
(TDS certificate Income (TDS Certificate on TDS on
on other then Salary)
Salary)
30th June
31st July
15th August
30th September
31st October
15th November
31st December
31st January
15th February
31st March
31st May
15th June
31ST May
TDS defaults
1
7
Secti
on
Nature of Default
Interset Period
Intere
st
under
sectio
n
201(1
A)
1.00%
per
month
1.50%
Per
month
Consequences of Defaults
1
New Section for Penalty for non submission of e-TDS /eTCS return
8
(section 271H)(applicable from 01.07.2012)
However, the interest fornot deducting tax would be payable from the
date onwhich such tax wascollectible till the date of furnishing of return of
income by the residentpayee.
Penalty Provisions
Penalty Amount
272BB
10,000
234E
271H
1
9
General Information
2
0
u/s.197,
2
1
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