Thursday, December 5, 2013

TDS Exclusive Chart - Provisions, Rates & Limits

An Exclusive Compilation of all TDS related provisions. The chart is helpful for both  Professional & Academic Views & Requirements.

Notes :
1. For the purpose of sections 194C, 194H, 194A, 194J & 194I, Individual/HUF should only make TDS if were covered u/s 44AB during the preceding previous year (ie., whose Gross Receipts or Turnover exceeds Rs. 100 Lacs(for Business) or Rs.25 Lacs(for Profession), during preceding previous Year).

2. TDS shall be made on Payment or Credit whichever is earlier, in respect of the sections 193, 194A, 194C, 194D,194E, 194G, 194H, 194I, 194J, 194LB, 194LC, 195, 196B, 196C & 196D.

3. The amount which is subject to TDS liability, though being credited to any account, even under Suspense a/c willdeemed to be credited to the account of the payee.

4. Expense will be disallowed, if TDS not made u/s 193, 194C, 194H, 194A, 194J & 194I or if made & not yet deposited,u/s 40(a)(ia).

5. TDS u/s 192, 194A, 194G & 194H can be deposited on the quarterly basis also on the prior approval by department.

6. No Surcharge & Cess will be levied, w.e.f. 01/04/2009. However, TDS made w.r.t. payments made to non-residentwill be liable for levy of Education Cess & Secondary & Higher Education Cess.

7. TDS will be deducted on amount inclusive of Service Tax, except in case of TDS on Rent.

8. TDS Rate applicable, in case of non availiabilty of PAN is 20% or Actual Rate whichever is higher from F.Y. 2010-11u/s 206AA.

9. Interest will be charged to payee on failure to deduct or pay , whole or any part of tax as follows :-
- 1 % per month or part of month, on the amount of such tax, from the date on which such tax was deductible tothe date on which such tax is actually deducted.
- 1.5 % per month or part of month, on the amount of such tax, from the date on which such tax is deducted tothe date on which such tax is actually paid [Sec 201(1A)].

10. Last Dates for :
a) Deposition of TDS without late interest :
- TDS made from April to February - 7th of following month in which TDS made ;
- TDS made in March - 30th of April .
b) Deposition of TDS for getting expenditure to be allowed in the same previous year :
- TDS made from April to February - 31st March (i.e., Balance Sheet Date) ;
- TDS made in March - 30th September (i.e., Last Date of Filing of Income Tax Return).
c) Deposition of Quartely TDS Returns (without Penalty) :
- For I, II & III Quarters - 15th of the following month from the end of Quarter
( However, the above relevant due dates for I,Ii & III Qtrs. for the govt. deductor is 31st instead of 15th) ;
- For IV Quarters - 15th of May.

11. TDS certificates to be issued mandatorily, w.e.f. 01st April, 2012 in Form 16A or 16B(for TDS u/s 194IA) generated& downloaded online through TIN Central System ( ie., from website '' ) with a unique TDSCertificate No. (except Form 16), with the digital signatures & shall be issued quarterly within 15 days of fillingof quarterly statements u/s 203.
[However, in case of Salary, Certificate to be issued upto 31st May from the end of the relevant previous year].

12. TDS mandatorily required to be deposited electronically in the following cases : [Sect. 200]
a) Company;
b) Tax Audit Assessee

13. Relief from TDS can be availed by the assessee u/s 197 ( Dept. approval for lower or no deduction ) & 197A (Selfdeclaration only for no deduction of TDS in FORM 15H & 15G, if the income is below B.E.L.) :
- Relief u/s 197 - w.r.t. all sections except 194B, 194BB, 194E, 194LB, 196B, 196C & 196D.
- Relief u/s 197A - w.r.t. 193, 194 & 194A.

14. Deductor will be allowed to adjust excess TDS deposited in any quarter of a F.Y., within anyother quarter of thesame F.Y. However, if can't be adjusted during the same F.Y., payer shall be allowed refund for the same.
Provided :
- Credit of that excess amount has not been claimed by the deductee;
- Deductor has not allowed TDS certificate to the deductee for the excess amount;
- Deductee is a resident.
- Refund has claimed within 2 years(with the approval of Additional CIT(TDS)) from the end of the F.Y. in which
the TDS was deductible.
[ Excess TDS = TDS deposited - TDS deductible ]

15. No TDS on Interest or Dividends or Other sums payable to followings as specified u/s 196 :
1. Government ;
2. Reserve Bank of India ;
3. Mutual Funds ;
4. Corporation established under any Central act whose Income is exempt from Tax.

- Prepared by :
Tarun K. Panjwani
[ Last updated w.r.t. The Finance Act, 2013 ]
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