Tuesday, November 3, 2015

TDS e-payment, Challan, Sections, Certificates etc.,

  • Every Person including INDIVIDUAL and HUF even if they are nor required to get their accounts audited in the preceding year making payment of salary income to resident or non-resident shall deduct tax at source.
  • However, while estimating the tax liability assessee shall be allowed deduction under section 80C to 80U but only notified deductions like 80C, 80CCC, 80CCD, 80CCG,80D, 80DD, 80DDB, 80E, 80EE,80GG, 80GGA, 80TTA, 80U and some part of 80G shall be considered.
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Issue of Certificate for not deducting TDS
  • As per Section 197 ,if any employee finds that is tax liability shall be less  than the amount of tax deducted at source, in that case he may apply to the Assessing Officer to issue him a certificate for not deducting TDS or  for deducting TDS at lower rate. 
  • As per Section 206AA, if the person receiving the payments has not submitted PAN, rate of TDS shall be 20% in that case.

SECTION 193 –Interest on Securities
  • On the payment exceeding 5000 INR Deductor or the holder of TAN shall deduct TDS at 10% in case of Individual/HUF  and same shall be in case of Company

Section-194 C Payment to Contractors/Sub Contractors.
  • On the Payment Exceeding 30000 INR for Single payment or 75000 INR for aggregate payment during Financial Year, TDS shall be deducted at 1% in case of Individual/HUF and 2% in case of Company
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Sec-194H –Commission or Brokerage
  • On the payment exceeding 5000 INR the Deductor holding TAN shall deduct TDS  at the rate 10% in case of Individual/HUF as well as in case of Company.

Sec-194I Rent of Land, Building or furniture
  • Any person who is responsible for paying to a resident any income by way of rent shall deduct the TDS 2% for the use of machinery or plant or equipment .
  • And 10% in case of use of Land, building, or land appurtenant to a building.
  • Further the payment shall be exceeding 180000 INR.
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Sec-194J Professional/ Technical Services  
  • Every person, who is responsible for paying to a resident any sum by the way of-
  • Professional/Technical Services.
  • Royalty
  • Any remuneration or fees or commission to a director of a company
Shall deduct TDS at the rate of 10% if the payment is exceeding a sum of 30000 INR.

Also Read
eTDS Frequently Asked Questions

Sec-194LA  Payment of Compensation on Acquisition of certain Immovable Property
  • Any person responsible for paying to a resident any compensation or the enhanced compensation on account of compulsory acquisition of any property shall deduct TDS @ 10% if the payment is exceeding 200000 INR.

Sec-195 Payment to Non-Resident of Foreign Company
  • Every person making payment to a non-resident or to a foreign company shall deduct TDS at the prescribed rate. If any person is making payment of salary to a non-resident or to a resident, it will be covered u/s.-192 and tax will be deducted at source accordingly.

Duty of Person Deducting TDS
  • As per Sec-200/Rule 30 , any person deducting any sum in accordance with the foregoing provisions shall pay within the prescribed time ,the sum so deducted to the credit of Central Govt. within 7 Days from the last day of the month in which the deduction is made.
  • But if the tax has been deducted in the month of march, then tax shall be deposited on or before 30th April.

Quarterly Statement of TDS
  • Every person deducting TDS has to submit quarterly statement containing details of the TDS deducted.
  • The statement should be submitted up to 15th of the month succeeding the relevant quarter but the statement for the quarter ending March can be submitted up to 15th May.
  • In case of Delay ,Penalty of INR 200 per day shall be charged but up to max. to the extent of TDS.
  • (Form No.- 24Q – Quarterly Statement for Salary)
  • (Form No.- 26Q – Quarterly Statement for Others)

Consequences of Failure to Deduct to Pay (Sec-201)  
  • If any person failed to Deduct TDS then interest shall be charged @ 1% p.m. or part of the month for the period of delay.
  • If the person has deducted TDS but not Deposited within the time allowed u/s-200 ,interest shall be charged @ 1.5% p.m. or the part of month from the date of deducting tax at source up to the date of depositing the amount.

Certificate for Tax Deducted Sec-203/Rule-31
  • Every person deducting TDS shall issue a certificate to the person with regard to whom tax has been deducted at source. In case of payment of Salary, certificate shall be issued in Form 16 and in other case it will be Form. 16A.
  • Form 16 should be given up to 31st may of the succeeding year in case of employee and it will be an annual certificate.
  • Form 16A should be issued on quarterly basis within 15 days from the last date of submitting the quarterly statement u/s-200.

Tax deduction Account number (TAN)
  • Every person, deducting tax or collecting tax, who has not been allotted a tax deduction account number shall, within such time a may be prescribed, apply to AO for the allotment of a “Tax deduction and collection account number". Application shall be made in Form No.-49B within one month from the end of the month in which tax was deducted for the first time.

Requirement to furnish PAN
  • Every person on whose behalf, tax is deducted at source shall submit his PAN to the person deducting tax at source otherwise rate of TDS shall be the actual rate or 20% whichever is higher. The person deducting TDS has to mention such PAN in quarterly statement.

TDS shall be on amount excluding service tax
  • Tax shall be deducted at source on the amount paid/payable without including service tax component. 



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