SOURCE
(TDS)
SUBMITTED BY:
AMBAR PRATIK MISHRA
GUIDED BY:
RAJNIKANT KHUNTIA
ASST. PROFFESOR
DEPT. OF COMMERCE
DHENKANAL AUTONOMOUS COLLEGE
DHENKANAL
MEANING
Means that the person responsible for making payment
of certain incomes to the income earners deduct income
tax at the prescribed rates on such incomes before
payment is made to them.
Amount so deducted at source shall be deposited by the
deductor in the Govt. Treasury with in the prescribed
limit.
Deductor
It is a person/company who is liable to deduct the TAX at
source, from the payment being made to the party.
Deductor is also termed as Employer in cases where the
payments are under Salaries.
Deductee
It is the person, from whom the tax is being deducted or
accrued for deduction.
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
TAN
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).
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.
Payments subject to deduction of tax at
source
Salaries- Section 192
Interest on securities- Section 193
Dividends - Section 194
Interest other than interest on securities- Section 194A
Winnings from lotteries or crossword puzzles- Section 194B
Winnings from horse races- Section 194BB.
Payments to resident contractors- Section 194C.
Payment to insurance commission-Section 194D.
Payment to non-resident sportsman or Sports Association-
Section 194E
Payment of commission etc. on sale of lottery tickets Section
194G
Section 192 - Salaries
Who is liable to deduct?
Any person responsible for paying any sum chargeable under the head
“salaries”.
In other words every employer is liable to deduct tax at source.
Thus ,even individuals or HUF are required .
TDS @average rate of Tax payable for FY
Salary means ''salary” as per Sec 17 of Act
TDS has to be deducted @ the time of payment every month
Amount = Estimated Tax for FY /12 months
Consider: Salary from previous employer
Consider: Income from other sources
Deductions under Chapter-VIA
Section 80C
Section 80CCA: National Saving Scheme or deferred annuity plan
Section 80CCB: Equity linked saving scheme
Section 80CCC: Pension Funds
Section 80CCD: Pension Scheme of Central Government
Section 80D: Medical Insurance
Section 80DD: Medical treatment of handicapped
Section 80E: Repayment of loan for higher education
Section 80GG: House Rent Paid
Section 80RRA: Remuneration in Foreign Currency
Section 80U: Persons suffering from disability
Interest on Securities
SEC-193
The person responsible for paying income by way of “Interest
on Securities” to a resident or a domestic company shall, at the
time of payment thereof or at the time of credit of such interest
in the books of account, whichever is earlier.
Rate of Tax: 10%
Tax shall not be deducted at source from any interest payable
on:
National Saving Certificate
Debentures issued by a co-operative society or any public
sector company and which are notified by the CG.
National Development Bond
Dividend
SEC-194
Who will deduct tax at source? - The principle officer of
company
On which income deduction is to be made?- On
dividends u/s 2(22)(e)
Rate of TDS: 10%
Interest other than
“interest on securities”
SEC-194a
Who will deduct the tax at source?
An individual or HUF, who is required to get his account
audited u/S44ab
A company, firm, co-operative society, AOP, BOI etc
Payment made to whom?- A resident of India or domestic
company
Rate of tax-10%
Limit:
For banking co.-Rs.10000
For others- Rs.5000
Deduction at the time of credit or payment which is earlier.
Winnings from lotteries or crossword puzzles etc
SEC-194b
The person responsible for paying any income to any resident or domestic
company by way of winnings from lottery or crossword puzzles or card
game or any other game of any sort of an amount, exceeding Rs.10000 at
the time of payment, deduct income tax thereon at the rates in force.
Rate of tax: 30%
Important points:
When the prize is given partly in cash and partly in kind income tax will be
deducted with reference to the aggregate amount of the cash prize and the
value of the prize in kind.
When the prize is given in installments, the tax will be deducted only at the
time of actual payment of each installment.
Winnings from horse races
SEC-194bb
Tax will be deducted at source by bookmakers race
clubs from winnings from horse races where the
payments exceed Rs 5000.
Rate of Tax- 30%
Payments to Contractors
SEC-194c
• Income tax will be deductible at source from
payments made by the following to any resident
contractor for carrying out any work in pursuance of a
contract between the contractor and
The Central Govt. or any State Govt.
Any local authority.
Any company
Any statutory corporation.
Any co-operative society.
Any trust.
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.
Insurance commission
SEC-194d
Any person responsible for paying to a resident or
domestic company any income by way of insurance
commission will be required to deduct income tax
from such income at the rate of 10% during the
financial year.
No TDS shall be deducted at source if such incomes
does not exceed Rs 20,000 in the financial year.
Section 194E (TDS on NR Sport Person/Association)
Rate: @ 20%
Amount: Any payment made
Payment of commission etc. on sale
of lottery tickets
The person who is responsible for paying, any
commission, remuneration or prize exceeding Rs
15,000 to a person who is stocking, distributing,
purchasing or selling of lottery tickets shall deduct tax
at source thereon @5%.
TDS ON RENT
SEC-194i
Who is liable to deduct ?
Every person other than individual and HUF
Individuals and HUFs liable for tax audit also required
to deduct at source.
Rate:
On Plant & Machinery- @ 2%
On Land, Building & Furniture- @ 10%
Limit: Rs. 1,80,000 p.a.
Section 194H
(TDS on commission/brokerage)
Rate: @ 5%
Limit: Rs. 15,000
Section 1941A
(TDS on Purchase of Immovable Property)
Rate: @ 1%
Limit: Rs. 50,00,000
Section 194J –
Fees for Professional or Technical services
Who is to deduct tax?
Any person other then individuals and HUF (not
subject to tax audit)
Rate- 10%
Limit- Rs.30000
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. 2,50,000
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)
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)
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 compu TDS
FVU (File Validation Utility) file generated from the
software/ utility to be submitted to TIN-FC alongwith
Verification Form (Form 27A)
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
TDS CERTIFICATE
Form 16- Salary
Form 16A- Non Salary
Form 16B- TDS on Property
THANK YOU
