This document summarizes tax deduction at source requirements in India. It states that any person responsible for making income payments covered by the tax scheme must deduct tax at prescribed rates and deposit the amounts by the 7th of the following month. It also outlines requirements for obtaining a TAN number, issuing TDS certificates, submitting quarterly statements, and penalties for non-compliance. Various sections are cited that specify TDS rates for different types of payments like salary, rent, interest, dividends, and commission.

2. Persons responsible for making payment of Income
Covered by the Scheme, are responsible to deduct
tax at source at the prescribed rates.
Every person deducting tax at source should
obtain TAN(tax deduction account number),shall
apply in Form no.49b.
Amount so deducted should be deposited up to
7th of succeeding month but in case of march last
date shall be 30 April.

3. Every person deducting tax at source shall issue
TDS certificate to the person to whose behalf
tax has been deducted at source.
Employer shall issue Form 16 on annual basis,
should be issued up to 31st may of A.Y.
Rest all shall issue Form 16A on quarterly basis,
maximum within 15 days from the last date of
submission of quarterly return.

4. Every person deducting tax at source shall
submit a quarterly statement to the
department in prescribed form i.e. Form
24Q/26Q.
Return should be submitted maximum within
15 days from the close of the quarter.
Otherwise penalty shall be charged at a rate
of Rs.200 per day/ Maximum to the extent
of tax deducted at source.
Sec
200

5. 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 deductable 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.
Sec
201

6. 2% of Sums Payable
◦ If payment to Individual/HUF -1% of sums
Payable.
◦ Provided Individual payment Exceeding Rs.
30000 or Aggregate during Particular Year
Exceeding Rs. 75000.
Sec 194(c)

7. TDS rate shall be 10% of sums payable.
◦ Provided amount paid/payable during particular year
to a particular person exceeding Rs.30000.
If any Individual/HUF making payment for
professional services, for personal purpose, no
tax shall be deducted at source.
Sec
194J

8. TDS rate shall be 10%.
◦ Provided amount paid/payable during a
particular year is exceeding Rs.5000.
It will be exclusive of service tax i.e.
TDS deducted on the amount of
Commission/Brokerage.
Sec
194H

9. TDS rate shall be 10%
◦ Provided the Rent paid/payable during a particular
year is exceeding Rs.180000/-.
TDS rate shall be 2%.
◦ If rent is paid for Plant & Machinery.
It will be exclusive of service tax.
No TDS on the amount of security, but
TDS provision is applicable if security is non-
refundable.
Sec
194I

10. Person responsible for making payment of salary to any
person shall estimate tax liability of the employee.
Tax so estimated shall be deducted in 12 monthly
installments.
While estimating tax liability , deduction u/s
80C-80U shall be allowed.
If the employee has Income under any other head,
employee may disclose such income also to the employer
and employer shall take in to consideration such income
also.
Sec
192

11. TDS rate shall be @10%.
◦ Provided interest paid/payable during a particular year
to a particular person is exceeding Rs.5000.
◦ No TDS in case of Govt. Securities.
◦ No TDS in case of interest on securities held in Demat
form.
◦ No TDS if interest is being paid to any Bank/Insurance
company or other notified person.
Securities refers to debentures/bonds etc
Sec 193

12. TDS rate shall be 10%.
◦ Provided amount paid/payable to any particular person in
a particular year is exceeding Rs.5000.
◦ In case of Bank/Post office amount shall be Rs.10000
◦ No TDS in case of payment of interest by Co-operative
Society to their Members.
◦ No TDS in case of payment of interest to
Banks/Insurance Companies/Notified persons.
◦ If any Partnership firm has paid interest to a partner,
No tax shall be deducted at Source.
Sec
194D

13. Every Domestic Company responsible
for making payment of dividend to a
Resident covered U/s 2(22)(e) shall
deduct tax at source at a rate of
10%.
◦ Provided the amount of dividend
paid/payable to a particular person during
a particular year is exceeding Rs.2500.
Sec 194

14. Every person making payment to a
Resident of commission in connection
with insurance business shall deduct
tax at source at a rate 10%.
◦ Provided the amount of commission
paid/payable to a particular person during
a particular year is exceeding Rs.20000.
Sec
194E