TDS
TDS is required to be deducted by responsible person at the appropriate rates, from payments of specific nature i.e. salary, rent, contract payments, consultancy fees, commission, etc. Applicable to all assessees other than indv/HUF. Generally, tax is required to be deducted at the time of the credit to account of the payee or at the time of payment, Whichever is earlier However, In case of payment of salary and payment in respect of life insurance policy, tax is required to be deducted at the time of payment.
TDS Rate Chart for AY 2021-22
Taxes shall be deducted at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act. However, in case of payment to non-resident persons, the withholding tax rates specified under the Double Taxation Avoidance Agreements shall also be considered
Briefs of Section and Rate for TDS
TDS Rate Chart for FY 2020-2021 for a Person (other than a Company) who is Resident in India
TDS Rate Chart for FY 2020-2021 for a company
TDS Rate Chart for FY 2020-2021 for a domestic company: TDS Rate Chart
TDS Rates Chart for AU 2022-23 (FY 2021-22)
Effective from 1st April 2021 TCS rates effective from April 1, 2021:
Other Requirements of TDS/TCS
If recipient not furnish his/its PAN Tax shall be deducted at the normal rate or at the rate of 20% , whichever is higher
How to pay Tax Deducted at source?
Tax deducted or collected at source shall be deposited to the credit of the Central Government by following modes:
- Electronic mode: E-Payment is mandatory for a) All corporate assesses; and b) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable. 2) Physical Mode: By furnishing the Challan 281 in the authorized bank branch
CERTIFICATE FOR DEDUCTION AT LOWER RATE OR NO DEDUCTION AT SOURCE
On application made to Assessing officer, if he satisfied that the total income of recipient justifies the deduction of income tax at any lower rates or no deduction of income tax, the AO shall give him such certificate under section 197.The person responsible for paying the income shall deduct income tax at the rates specified in such certificate or deduct no tax as the case may be, mentioned in certificate issued under section 197.The person responsible for TDS, shall submit one copy before the Chief commissioner or commissioner of TDS.
NO DEDUCTION of TDS
Section 197AAmount of any income does not exceed the maximum amount which is not chargeable to taxAn individual, resident in India has furnished Form 15G in duplicate to the deductorAn individual, resident in India ( Senior Citizen) has furnished form 15H in duplicate to the deductorBy Offshore Banking Unit from the interest paid to nonresident or a person not ordinarily resident in IndiaFrom any payment to any person for or on behalf of the New pension system[10(44)]From such specified payment to such institution, association or body or class of institutions as may be notified by the Central Government whose income is unconditionally exempt under section 10 and who are not statutorily required to file return under section 139.Local Authority, SAARC fund, IRDA, Prime minister’s National relief fund, Recognised provident fund, ESIC fund etc.
Threshold Limit for no deduction of TDS
192 (Salary) Estimated salary does not exceeds exemption limit, i.e. Rs.250000/- , 300000/- ,500000/-. ( It is applicable even employee does not have PAN)192 A(Withdrawal from employees provident fund scheme) Withdrawal is less than Rs. 50000/-193 (Interest on securities) Does not exceed Rs. 5000/-Bank, Post office, Co operative society engaged in banking business – Sr. citizen-on FD- Rs. 50000/-, To other person- Rs. 40000/-194 For an Individual aggregate of amount of Dividends does not exceed Rs. 5000/-194A(Interest other than interest on securities) Any other person- Rs. 5000/-194 B (Winning from lottery or crossword puzzles) Does not exceed Rs. 10000/-194BB(Winning from horse race) Exceeds Rs. 10000/-194 C (payment to contractors) Single payment does not exceeds Rs. 30000 and the aggregate of such payment during the financial year does not exceed Rs. 100000/194 C (payment to contractors) Payment to transport operators has furnished PAN to deductors and having 10 or less than 10 goods carriages at any time during the financial year. Payment by an individual or HUF to a resident contractors for personal purposes. 194 D (Insurance Commission) Does not exceed Rs. 15000/- 194 DA (Life Insurance Policy) Does not exceed Rs. 100000/- 194 G (On sale of lottery tickets) Does not exceed Rs. 15000/- 194 H (Commission or brokerage) Does not exceed Rs. 15000/- 194 I (Rent income) Does not exceed Rs. 240000/-194 IA (Transfer of certain immovable property other than agriculture land) Consideration for immovable property is less than Rs. 50 lakhs194 IB (by certain Individual or HUF whose books of account are not required to be audited u/s 44AB(a)/(b) in the immediate preceding F.Y.) Rent of land or building does not exceed Rs. 50000/ per month.194 J ( Professional or technical service) Does not exceed Rs. 30000/-194 K (Income from units of Mutual fund) Does not exceed Rs. 5000/-194 O (Payment by e-commerce operator to e- commerce participant). If payment made to Individual or HUF e-commerce participant during the previous year does not exceed Rs. 5 lakhs.
Time of Deposit TDS
TDS Payment
TDS should be deposit in Challan No. 281TDS will have to deposit through internet banking.Indicate accurate PAN in challanMinor Head of Challan – 200 : TDS payable by tax payerMinor Head of Challan – 400: TDS Regular assessment raised by Income Tax Department.Amount of TDS, Interest, Late filing fee, penalty etc, should be separately shown while filing the challanNote down BSR code, Challan serial number, Date of payment, and amount of challan. This will help you in case challan is misplaced.
Time limit for issuing TDS certificate in case of other than salary
Consequences for Failure
Late filing fees for TDS Return U/s 234E: Mandatory late filing fees U/s 234E of Rs 200/- per day subject to maximum of TDS amount.
Income paid or credited in the month of March: Tax should be deposited by April 30.
Penalty for Late filing or non filing of TDS Return U/s 271H: Failure to filing TDS return within 1 year from specified date will attract minimum penalty of Rs. 10000 and maximum penalty of Rs. 100000/- Applicability of Interest on Non/ Late deduction TDS and Late payment of TDS :
i) Late Deduction: Interest @ 1% p.m. for late deduction of TDS on applicable amount.ii) Late remittance: Interest @ 1.5% p.m. for late remittence on applicable amount
Penalty U/s 271C upto the amount of TDS if not deducted and paid to the Government account Recommended
TDS Section 194IATDS on Sale of PropertyTDS on AdvertisementsLIC Premium Online Payment Procedure without RegistrationStep By Step Guide to Tax Audit
