TAX Deducted at Source

Every specified person is responsible for TAX Deducted at Source(TDS).

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Commonly used TDS Provision for payments made to persons resident in India (Individuals, Firms, Companies, etc.):-

The income tax return of a proprietorship that doesn’t require audit is due on 31st July. In case the income tax return of a proprietorship needs to be audited as per Income Tax Act, then the return would be due on 30th September. Proprietorship firms would be required to file Form ITR-3 or Form ITR-4-Sugam. Form ITR-3 can be filed by a proprietor or a Hindu Undivided Family who is carrying out a proprietary business or profession. Form ITR-4-Sugam can be filed by a proprietor who would like to pay income tax under the presumptive taxation scheme. Presumptive taxation scheme is designed to help ease the compliance burden of small businesses by assuming a set profit margin on the total income of the business or profession.
(i) Individual of 60 years or more at any time during the year
(ii) An individual is said to be resident in any previous year if he satisfies any one of the following conditions:
        a). He stays in India in the relevant previous year for a period of 182 days or,
         b). He stays in India for at least 60 days during the relevant previous year and at least 365 days for 4 years preceding that previous year.
iii) 194A the interest limit is enhanced from Rs. 10,000/- to Rs. 40,000/- in case of payer is bank, co-operative society and post office. If the payee is senior citizen, the limit is Rs. 50,000.
iv) u/s194-I the monetary limit enhanced to Rs. 2,40,000/- from Rs. 1,80,000/-. Accordingly, if the rent payment does not exceed Rs. 2,40,000/- in a financial year, deductor is not require to deduct the TDS.

All TDS Provision for payments made to persons resident/ non resident in India (Individuals, Firms, Companies, etc.)

  • No TDS on Goods & Service Tax: As per circular no. 23/2017 dated 19.07.2017of CBEC, TDS is not applicable on Goods and Service Tax (GST) where GST is shown separately.
  • No Surcharge, Health & Education Cessis not deductible on payments made to residents, other than salary
  • Deduction of TDS at a lower rate or non-deduction of TDS:
  • Deduction of TDS at a lower rate:
  • TDS at higher rate: If a person fails to furnish PAN to the Assessee whose receipts are subject to TDS, then, the TDS is to be deducted at higher of the following rates”. i) The rates in force or ii) 20% Exemption for deduction of TDS at a lower rate or non-deduction of TDS as discussed in Point 1-C is not admissible in case of Invalid PAN/ No-PAN.
  • TDS on Good Transport: TDS shall be applicable on payment to transporters, i.e., contractors in the business of plying, hiring or leasing goods carriages. However, TDS exemption will be available to transporter owning 10 (ten) or less goods carriage at any time during the previous year. For claiming such exemption, transporter would also need to furnish a declaration to the Assessee along with a copy of PAN. For transporter not covered above, TDS is to be deducted at normal rates as given in above table.
1) Due dates for deposit/remittance of TDS to Central Government are as under: Other than Section 194IA/194IB
• For the months of April to February (Monthly) – on or before 7th day from the end of the month in which tax is deducted.
• For the month of March –  30th April Section 194IA/194IB
• For any month – on or before 30th day from the end of the month in which tax is deducted.

2)  Interest on non-deduction/ non-payment of TDS: As per Sec. 201(1A) of the Income-tax Act, 1961, if the Assessee does not deduct the whole or any part of the TDS or after deducting fails to pay the TDS as required by or under the Act, then the Assessee is liable to pay simple interest on the amount of such TDS, for every month or part of a month, at the rate of:
• 1% from the date on which such TDS was deductible up to the date on which such TDS is deducted; and
• 5% from the date on which such TDS was deducted up to the date on which such TDS is paid 

3)  Late filing Levy: As per Sec 234E of Income tax Act 1961, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues, maximum to the amount of tax deducted.

4) Due dates for filing of e-TDS returns & issue of TDS certificates:
a) In respect of any other TDS (other than TDS u/s. 194-IA):
b) In respect of TDS u/s 194IA
i) A challan-cum-statement in Form No.26QB is to be filed within 30 days from the end of the month in which the deduction is made
ii) TDS certificate in Form no.16B is to be issued to the payee within 15 days from due date of furnishing statement in Form no. 26QB
c) In respect of TDS u/s 194IB
i) A challan-cum-statement in Form No.26QC is to be filed within 30 days from the end of the month in which the deduction is made
ii) TDS certificate in Form no.16C is to be issued to the payee within 15 days from due date of furnishing statement in Form no. 26QC

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. Health & Education Cess: 4% of Income Tax.

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