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About TDS Return
TDS (Tax Deducted at Source) is an indirect system of deduction of tax according to the Income Tax Act, 1961 at the point of generation of income. Tax is deducted by the payer and is remitted to the government by him on behalf of the payee.
A TDS Return is a quarterly statement which has to be submitted to the Income Tax Department of India. Submitting TDS Return is mandatory if you are a deductor. It has details of TDS deducted and deposited by you.
Frequently Asked Questions
What is TDS?
TDS means Tax Deducted at Source. It is the amount deducted from payments of various kinds such as salary, contract payment, commission etc. This deducted amount can be adjusted against the tax due of the deductee.
Who is required to file TDS return?
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).
What is TAN and is it required to file TDS return?
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/-.
What are 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
Is PAN mandatory for deductors and employees/deductees?
PAN of the deductor has to be given by Non-Government deductors. It is essential to quote PAN of all deductees.
What are the due dates of submission of quarterly TDS Returns?
Due dates of submission of quarterly TDS Return is 31st July for Q1, 31st October for Q2, 31st January for Q3, and 31st May for last quarter.
What are the rates at which TDS is to be deducted for TDS returns?
Following table gives the types of payments, threshold limits and the rates at which TDS is to be deducted.
| 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 | - |
| 192 | Interest on securities | ||
| a) Interest on Securities | 10 | Nil | |
| b) Interest on Debentures; | 10 | Nil | |
| 194 | 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 | 1 | Rs. 30,000 | |
| b) Others | 2 | ||
| 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 |
| 194-I | i) Plant & Machinery, ii) 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 | 4 | - |
| 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 |
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 | - |
How do I deposit TDS to Central Government?
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.
Who is required to issue TDS certificates?
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.
What are the due dates for depositing tax and filing TDS return
Once tax is deducted the deductor should deposit the tax deducted with Central Government within time limit specified in the table below :
Following table gives the types of payments, threshold limits and the rates at which TDS is to be deducted.
| Type of Deductor | Payments made between April – Feb | Payments made in March |
|---|---|---|
| Government | Without Challan: Same day | Without Challan: Same day |
| With Challan: On or before 7th of next month | 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 |
What is 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.