This document provides an overview of Tax Deduction at Source (TDS) in India. TDS refers to tax deducted at the source of income by the payer from amounts paid to the recipient. The key points covered are: - TDS is an advance tax paid to the government and the tax deducted has to be deposited within a specified time. - Employers, government bodies, companies, banks, and other specified entities are responsible for deducting TDS based on the type of payment and thresholds. - Various sections of the Income Tax Act specify the rates of TDS to be applied on different types of income such as salaries, interest, rent, professional fees, lottery winnings

1. OVERVIEW OF TDS

2. What is TDS
 Tax Deduction at Source or TDS is one of the modes of
collecting Income-tax.
 In simple terms, TDS is the tax getting deducted from the
person receiving the amount (Employee/Deductee) by the
person paying such amount (Employer/Deductor).
 The tax so deducted at source by the payer, has to be
deposited in the Government treasury to the credit of
Central Govt. within the specified time.
 The tax so deducted from the income of the recipient is
deemed to be payment of Income-tax by the recipient at
the time of his assessment.
 It is always considered as an Advance tax which is paid to
the government.

3. Who shall deduct tax at source
 Every person responsible for making payment of nature
covered by TDS provisions of Income Tax Act shall be
responsible to deduct tax.
 However in case of payments made under sec. 194A,
194C, 194H, 194I and 194J in respect of individual and
HUF, only if the turnover or professional receipt exceeds
Rs.1 crore or Rs. 25 Lakhs respectively in previous year, he
is required to deduct tax at source.

4. These persons are mainly:
 Principal Officer of a company for TDS purpose
including the employer in case of private employment
 DDO (Drawing & Disbursing Officer), In case of Govt.
Office any officer designated as such.
 In the case of "interest on securities" other than
payments made by or on behalf of the Central govt. or
the State Government, it is the local authority,
corporation or company, including the Principal Officer
thereof.

5.  Tax must be deducted at the time of payment in cash or
cheque or credit to the payee's account whichever is
earlier.
 Self declaration in Forms 15G and 15H can be filed by the
Deductee if his income doesn't exceed the amount
chargeable to tax. This self declaration can be filed for
dividends, interest and mutual fund income only. In these
cases no tax has to be deducted.

6. 192 TDS on Salaries
 Slab rate applicable
 Basis of estimated income

7. 193 Interest on Securities
 10000 if income from 8% Saving bonds
 5000 if interest on Debentures
 Responsible any person issuing security
No TDS if:
 Securities is in DMAT form
 Listed on Stock Exchange

8. 194A Any interest other than interest on
Securities
 10000 if Payer is Banking Company, Co-
Operative Society or Deposit with Post
Office
 5000 in other case
 Responsible any person other than
Individual or HUF
 10%
 20%

9. 194B Winnings from Lottery, Crossword
Puzzle or Television Game
 10000
 30%
194BB Winnings from Horse Race
 5000
 30%

10. 194C Payment in Pursuance of any
Contract
 Responsible Person Liable to get their Books
Audited
 Payee is Individual or HUF 1%
 Other person 2%
 Contract exceeds 30000
 Total in a year with same contractor or sub-
contractor exceeds 75000

11. No TDS if
 Payee is Transport operator and Furnished
his PAN to Payer

12. 194D Insurance Commission
 20000
 10%
 20%
194E payment to non-resident sportsman
 Nil
 20%

13. 194EE Sum out of National Savings
Scheme u/s 80CCA
 Limit 2500
 20%
194F Repurchase relevant of units
covered u/s 80CCB
 Nil
 20%

14. 194G Commission or Prize relating to
Lottery tickets
 1000
 10%
 Stocking, Purchasing or Selling Lottery
tickets

15. 194H Commission or Brokerage
 5000
 Other than individual and HUF
 10% PAN furnished
 20% PAN not furnished

16. 194-I Rent
 1,80,000
 Responsible other than individual and HUF
 2% Machinery & Plant
 10% Land, Building, Furniture and Fittings

17. 194J Fees for Professional or Technical
Services
 30000
 Responsible other than individual and HUF
 10% PAN furnished
 20% PAN not furnish

18. 194LA Immovable property acquisition
compensation
 Not applicable for agricultural land
 2,00,000 ( w.e.f. 1-7-2012)
 Any resident
 10%

19. 195 Any sum paid to non-resident or
foreign company
 Rate as per Double Tax Avoidance
Agreement (DTAA) with that Country

20. Consequences of not deducting
or not paying the amount of TDS
 If any person has not deducted tax at source Interest shall
be charged @1% p.m./part of the month for the period
starting from the date when tax was deductible up to the
date when tax was deducted.
 If any person has deducted tax at source but it was not
paid within the prescribed time period, Interest shall be
charged at a rate of @1.5% p.m./part of the month for the
period when tax was deducted at source up to the date of
payment.

21. THANK YOU