TDS Returns And Compliances

Services we provide for TDS return:

  1. For whom required?
  • It is the duty of the person who is making payment to someone for specified goods or services to deduct TDS and file TDS return. The specified payment includes salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. The person who deducts TDS is called deductor and the person whose tax is being deducted is called deductee.
  • TDS is not required to be deducted by Individuals and HUF except for those whose accounts are required to be audited u/s 44AB i.e. whose gross receipts in preceding financial year in case of business is more than 2 crore (AY 2017-2018) or 1 crore ( AY 2016-2017) and in case of profession 50 lakhs ( AY 2017-2018) or 25 lakhs (AY 2016-2017)

About TAN

  • TAN is an alphanumeric 10 digit number required by a person who is liable to deduct TDS and file TDS return. Thus such person must make an application within a month of deducting TDS for allotment of Tax Deduction and Collection Number (TAN) in Form 49B. This number allotted is mandatory to mention in all TDS Certificates issued, returns, challans etc. If a person fails to apply for TAN he may be penalised up to Rs. 10,000/-.

Different types of TDS forms:

  • Form 24Q -TDS on Salaries
  • Form 26Q – TDS on payments other than Salaries
  • Form 27Q – TDS on payments made to Non-Residents
  • Form 27EQ – TCS

Contact Form

  • Rates of Tax

Section

Particulars

TDS Rates in %

Threshold limits

192 Salary As per the rates of Income Slab As per the rates of Income Slab
192A Payment of accumulated balance of provident fund which is taxable in the hands of an employee 10
193 Interest on securities
a) Interest on Securities 10 Nil
b) Interest on Debentures; 10 Nil
194 Dividend (other than the listed companies) 10 Nil
194A Income by way of interest other than interest on securities 10 Rs. 5,000
194B Winnings from lotteries/ puzzles/card games. 30 Rs. 10,000
194BB Income by way of Winnings from horse races 30 Rs. 5,000
194C Payment to contractor/sub- contractor a) HUF/Individuals b) Others 1 2 Rs. 30,000
194D Insurance commission 5 Rs. 20,000
194DA Payment in respect of life insurance policy 1
194EE Payment of NSS Deposits 10 Rs. 2,500
194F Payment on account of repurchase of unit by Mutual Fund or Unit trust of India 20 Nil
194G Commission on sale of lottery tickets 5 Rs. 1,000
194H Commission or brokerage 5 Rs. 5,000
194-I Rent a) Plant & Machineryb) Land or building or furniture or fitting 2 10 Rs. 1.8 lakhs
194-IA Payment on transfer of certain immovable property other than agricultural land 1
194-IB Payment of rent by individual or HUF not liable to tax audit 5
194-IC Payment of monetary consideration under Joint Development Agreements 10
194J Any sum paid by way of a.        Fee for professional services b.        Fee for technical services c.        Royalty, d.        Remuneration/fee/commission to a director or e.        For not carrying out any activity in relation to any business f.         For not sharing any know-how, patent, copyright etc. 10 Rs. 30,000
194LA Payment of compensation on acquisition of certain immovable property 10 Rs. 1 lakh
194LBA Income distribution by a Business Trust u/s 115UA 10
194LBB Income distribution by a Investment Fund u/s 115UB 10
194LBC Income distribution by a Securitisation Trust u/s 115TCA 25% in case of Individual or HUF 30% in case of other individual
Any other Income 10

Deposit of Tax

  • Payment can be made online on NSDL by selecting Challan 281 and making the payment using net banking. These TDS payments need to be made before filing the TDS return.
  • E-payment is compulsory for all Corporate assesses & non-corporate assessees who are liable for audit u/s 44AB.
  • Physical payment can be made using Challan 281 in authorised bank branch.

Certificate of Tax

  • Every person deducting tax as per provisions of section 203 is required to issue a certificate to the payee in respect of tax deducted by him along with certain other particulars. This certificate is called TDS Certificate. Even banks deducting TDS on pensions issue TDS certificates.

 Types of TDS certificate to be issued in different cases:

  •  Salaries: Certificate is to be issued in Form 16 containing details of TDS Payment, tax deducted at source and tax calculation based on which TDS was estimated. The certificate should be issued within 31st May of next financial year.
  • Non Salary Payments: Certificate is to be issued in Form 16A containing details of payment and tax deducted at source. The certificate should be issued within 15 days of due date of filing the return.
  • TCS: Certificate to be issued in Form 27D containing the Tax Collected & Paid details.Failure to issue certificate will result in penalty of Rs. 100 for every day the failure continues but limited to the TDS amount. 

Due date of returns

  • Once tax is deducted the deductor should deposit the tax deducted with Central Government within time limit specified in the table below :

Type of Deductor

Payments made between April – Feb

Payments made in March

Government

Without Challan: Same day

With Challan: On or before 7th of next month

Without Challan: Same day

With Challan: On or before 7th of next month

Other than Government

On or before 7th of next month

On or before 30th April

Other than Government (payment u/s 194IA)

On or before 30th of next month

On or before 30th of next month

TDS Justification report

  • It is a document which serves as an annexure to the intimation to be sent to the deductor. Intimation will be sent to the deductor through mail / post but a justification report will have to be downloaded from the portal.
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