What is Tax Deducted at Source (TDS):
Tax: Tax here means – “Income Tax”
Deducted at: Deduction of Tax by the Deductor from the amount paid/payable to Deductee
Source: Deduction of Income Tax at the Source Itself.
Who is required to deduct TDS:
The Tax deduction provisions are applicable to the following category of Payers/Deductors:
v All Government Payers
v All Body Corporates/Companies
v All Partnership Firms/AOP/BOI/AJP/Local Bodies
v All Individuals who have been audited U/s 44AB in the previous Financial Year i.e. their turnovers have exceeded the limit prescribed for getting Tax Audited in the last year.
Payments that attract TDS provisions:
The Tax deduction provisions are applicable to the following categories of Incomes/Payments:
Nature of Payment Under Section
v Salary Payments 192
v Rent 194I
v Interest on Securities 194
v Int. other than Int. on Securities 194A
v Professional Services 194J
v Commission or Brokerage 194H
v Contract Payments 194C
Threshold Limits for TDS provisions:
The Tax deduction provisions are not applicable for payments which are below the threshold limits:
Nature of Payment Threshold Limit Per Annum
q Salary Payments Net Taxable Income below the basic tax exemption limit
q Rent Rs. 1,80,000/-
q Interest on Securities Rs. 5,000/-
q Int. other than Int. on Sec. Rs. 5,000/- (Rs.10,000/- in case of Bank int)
q Prof/Techincal Services Rs. 30,000/-
q Commission or Brokerage Rs. 2,500/-
q Contract Payments Rs. 50,000/- in aggregate and Rs. 30,000/- in a single payment
Due Dates for Deduction of TDS:
v The Deductor having a valid TAN has to make deduction of TDS out of payments to the deductees
v The due dates for deduction are as under:
Due Dates for Payment of Tax Deducted:
v After the Deductor has deducted the Tax amount from the Deductee within the due dates, he has to deposit the same to the Income Tax Department within the due dates.
v The due dates for payment of TDS are as under:
v The Deductor after making payment of TDS by a challan or Book Entry Adjustment, needs to file Quarterly ETDS Returns/Statements.
v There are Two (2) Basic ETDS Quarterly Returns, which are to be filed. They are as under:
v The Deductors have to file the TDS Returns within the Due dates laid down.
v The summary of Due dates for Filing TDS returns is as under:
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