Protect your employees and their families through this self – financing social security and health insurance scheme, Professional Tax is levied by the state government on the income earned by professionals. Get the information about Tax Deducted at Source (TDS) Returns, ESI Returns and Professional Tax Registration and the Process.

1. TAX FILINGS &
COMPLIANCES

2. WHAT WE DO
Our Experts will help you in Providing Services to the People Start & Grow your business easily
without any Non-Compliances from filing TDS Returns to Professional Tax Registration.
TDS Returns ESI Returns
Professional Tax
Registration

3. Before Knowing about TDS Returns.
First we should know about what is TDS?
TDS RETURNS

4. TDS (Tax Deducted at
Source)
TDS is deducted irrespective of the
mode of payment–cash, cheque or
credit–and is linked to the PAN of the
deductor and deducted.
As per the Income Tax Act, any company
or person making a payment is required
to deduct tax at source if the payment
exceeds certain threshold limits.
TDS has to be deducted at the rates
prescribed by the tax department.
The company or person that makes the payment
after deducting TDS is called a deductor and the
company or person receiving the payment is
called the deductee.
It is the deductor’s responsibility to deduct TDS
before making the payment and deposit the same
with the government.

5. Tax is Deducted on the following types of payments:
Salaries
Interest Payment by Banks
Commission Payments
Rent Payments
Consultation Fees
Professional Fees
However, Individuals are not required to
deduct TAX when they make Rent
Payments or Pay Fees to Professionals
like Lawyers and Doctors.

6. TAX DEDUCTED AT SOURCE
As Per Income Tax Act, 1961 TDS is
classified under different sections.
Each Section describes about different
type of payments.

7. SECTIONS
On Payment of Interest on SecuritiesSection 193
Section 194 Dividend Payment
Section 194A
Interest Payment by Banks, Post Offices, Co-
operative Societies, Others
Section 194B Winnings from Lotteries, Games, Puzzles
Section 194BB Winnings from Horse Races
Section 194C Payment to Contractors/Sub-Contractors
Section 192 Payment of Salaries

8. Section 194D Payment of Insurance Commission
Section 194DA Maturity Proceeds of a Life Insurance Policy
Section 194EE Deposits in National Savings Scheme
Section 194F Repurchase of units by Mutual Funds/UTI
Section 194G Commission on Sale of Lottery Tickets
Section 194H Commission or Brokerage
Section 194E Payment to non-resident sportsmen/sports association

9. Section 194IA
Rent on Plant & Machinery, Building, Furniture
Consideration for transfer of Immovable Property
other than Agriculture Land
Section 194IB Rent on Immovable Property
Section 194IC Consideration (not being in kind) under the Joint
Development Agreement or other similar agreement
Section 194J Payment for Professional Services, Technical Services, Royalty
Section 194LA Compensation on the acquisition of certain Immovable Property
Section 194I
Section 194LBA Income distribution by a Business Trust u/s 115UA

10. END OF SECTIONS
Section 194LBB
Section 194LBC
Income distribution by an Investment Fund u/s 115UB
Income distribution by a Securitization Trust u/s 115TCA
Section 195 Payment to Non-Residents

11. Section 193
Section 194
Interest on Securities, deducted by Any Person if Threshold limit exceeds Rs.10,000.
Rate @ 10%
Dividend Payment deducted by Company. Rate @ 15%
Section 194A Interest Payment(Other than Securities) deducted by Any Person other than Individual/HUF
not liable to Tax Audit in last Previous Year if Threshold limit exceeds Rs.10,000 (the limit is
Rs.50,000, in case of deductor, being a Resident Senior Citizen). Rate @ 10%.
Section 194B Winning from Lotteries, Crossword, Puzzles, Card games etc., deducted by Any
Person if Threshold Limit exceeds Rs.10,000. Rate @ 30%.
Section 194BB Winning from Horse Races deducted by Any Person if Threshold limit exceeds
Rs.10,000. Rate @ 30%.
Section 194C
Payment to Contractors/Sub-Contractors deducted by Any Person other than
Individual/HUF not liable to Tax Audit in last Previous Year if Threshold limit for
Single Payment exceeds Rs.30,000 or Aggregate Payment exceeds Rs.1,00,000 in
a Year. Rate @ 1%(If Contractor is Individual/HUF) 2%(In case of Others).
Section 192 At the time of Payment of Salaries to employees. Rate as per Slab Rates in
Income Tax Act, 1961.

12. Section 194D
Section 194DA
Payment of Insurance Commission deducted by Insurance Company if Threshold Limit
exceeds Rs.15,000 Per Annum. Rate @ 5%.
Maturity Proceeds of a Life Insurance Policy deducted by Any Person if Threshold Limit
exceeds Rs.1,00,000. Rate @ 1%.
Section 194E Payment to Non-Resident Sportsmen/Association/Entertainer deducted by Any Person, No
Threshold Limit. Rate @ 20%.
Section 194EE Deposits under National Savings Scheme deducted by Any Person if Threshold Limit exceeds
Rs.2,500. Rate @ 20%.
Section 194F Repurchase of Units by Mutual Fund/United Trust of India deducted by Any Person. No
Threshold Limit. Rate @ 20%.
Section 194G Commission on Sale of Lottery Tickets deducted by Any Person if Threshold Limit
exceeds by Rs.15,000 Per Annum. Rate @ 5%.
Section 194H Commission or Brokerage deducted by Any Person other than Individual/HUF not liable to
Tax Audit in last Previous Year if Threshold Limit exceeds by Rs.15,000. Rate @ 5%.

13. Section 194I
Section 194IA
Rent on Plant & Machinery, Building, Furniture deducted by Any Person other than
Individual/HUF not liable to Tax Audit in last Previous Year if Threshold Limit exceeds
Rs.1,80,000 Per Annum. Rate @ 2% (In case of Plant & Machinery) 10% (In case of Land &
Building, Furniture).
Consideration for transfer of Immovable Property other than Agriculture Land deducted by Any
Person if Consideration exceeds Rs.50 lakhs. Rate @ 1%.
Section 194IB
Rent of Immovable Property deducted by Individual & HUF (Other than covered u/s 194I) if Rent
exceeds Rs.50,000 Per Month. Rate @ 5%.
Section 194IC
Payment under Joint Development Agreement deducted by Any Person. No Threshold Limit.
Rate @ 10%.
Section 194J
Payment for Professional Services, Technical Services, Royalty deducted by Any Person
other than Individual/HUF not liable to Tax Audit in last Previous Year if Threshold
Limit exceeds Rs.30,000 Per Annum. Rate @ 10%.
Section 194LA Compensation for Compulsory Acquisition of Immovable Property deducted by Any Person
if Consideration exceeds Rs.2,50,000 Per Annum. Rate @ 10%. If Compulsory Acquisition of
Rural Agriculture Land, No need to deduct tax.

14. Section 194LB
Section 194LBB
Interest on Infrastructure debt Fund deducted by Infrastructure debt Fund. No Threshold Limit.
Rate @ 5%.
Income distribution by an Investment Fund u/s 115UB deducted by Investment Fund. No Threshold
Limit. Rate @ 10%.
Section 194LBC Income distribution by a Securitization Trust u/s 115TCA deducted by Securitization Trust. No
Threshold Limit. Rate @ 25% (In case deductor is Individual/HUF) 30% (In Other Cases).
Section 195 Payment to Non-Residents deducted by Any Person. No Threshold Limit. Rate @ 20%.

15. TDS Requirement arises:
Important Points But TDS should be deducted only at the time of Payments:
Salary
EPF Payment
Winnings
Maturity of Life Insurance Policy
Compensation on Compulsory
Acquisition of Property
i. At the time of Payment
or
ii. At the time of Credit of Account
Whichever is Earlier

16. Due Dates for
Payment of
Tax Deducted
at Source
If Tax is Deducted by Government Office
Amount Paid/Credited Due Date for TDS Deposit
Without Challan Same Day
With Challan 7th of Next Month
On perquisites opt to be
deposited by employer
7th of Next Month
If Tax is Deducted by Others
Amount Paid/Credited Due Date for TDS Deposit
In Month of March 31st April
In Other Months 7th of Next Month

17. A TDS Return is a quarterly statement which has to be
submitted to the income tax department.
Submitting TDS Returns is mandatory if you are a Deductor.
TDS Returns can be filed by Employers or Organizations who avail a
valid Tax Deduction and Collection Account Number (TAN).
TDS RETURNS
TDS Return consists of details of Tax deducted and deposited by you.
Eligibility Criteria
Any person making specified payments mentioned under the
Income Tax Act are required to deduct tax at source and needs to
deposit within the stipulated time

18. Copy of TDS Challans Deposited
PAN of Deductees
Amount of TDS Deducted and Date of deduction
Exemption Certificates if TDS is not deducted on any
payments
Nature of expense for which TDS is deducted
Bank Statements and Invoices as supporting to check
payments (Optional)

19. Ensures a flow of regular income to the
Government
ADVANTAGES
It helps in regular collection of taxes
Fees for late-filing of TDS under
section 234E
DISADVANTAGES
Penalty for late-filing or non-
filing TDS under section 271H
Interest shall be levied on late
deduction & late payment of TDS
Reduces the burden of lump-sum tax payment.
It helps in spreading the entire tax payment
over a number of months which makes it
easier for the taxpayer
If you file TDS return on time, hence no need to
pay interest, penalty & disallowance of income.

20. Form 24Q
Statement for tax
deducted at source
from salaries
Statement for tax
deducted at source
on all payments
other than salaries.
Statement for tax deduction
on income received from
interest, dividends, or any
other sum payable to non
residents.
Statement of collection
of tax at source.
Form 26Q Form 27Q Form 27EQ

21. Due Dates for TDS
Returns Filing
1st Quarter – 31st August
2nd Quarter – 31st October
3rd Quarter – 31st January
4th Quarter – 31st May

22. Penalty for delay in Filing TDS Returns
According to Section234E, if an assessee fails to file his/her TDS Return before the
due date, a penalty of Rs.200 per day shall be paid by the assessee until the time the
default continues. However, the total penalty should not exceed the TDS amount.
Penalty for Non-filing of TDS Returns
Consequences
If an assessee has not filed the return within 1 year from the due date of filing return or
if a person has furnished incorrect information, he/she shall also be liable for penalty.
The penalty levied should not be less than Rs.10,000 and not more than Rs.1,00,000.

23. ESI RETURNS
Employees State Insurance is one of the popular social
security schemes brought into force by the Central
Government after the Independence of India.
All employers having 10 ore more employees are required
to be registered with Employee State Insurance (ESI)
Corporation.
Those entities having ESI Registration must file ESI Returns.

24. Documents Required
Attendance register
Register for Form 6
Register of wages
Register of any accidents on the premises
Inspection book
Monthly challans

25. ESI Contribution Payment - Within 15
days from the end of month.
ESI Returns Due Date
ESI Return to be Filed Half Yearly (i.e. Twice in a Year)
– Within 42 days from the end of half year.
For 1st April to 30th September – 12th November
For 1st October to 31st March – 12th May

26. PROFESSIONAL
TAX REGISTRATION
Professional Tax is a Tax levied on Professions and Trades in India.
It is a state-level tax and has to be compulsorily paid by
every member of staff employed in private companies.
The owner of a business is responsible to deduct professional tax from the
salaries of his employees and pay the amount so collected to the
appropriate government department.

27. Important Points
The persons falling under the ambit of professional tax and the employers
employing staff for their business need to acquire registration with proper
department designated for compliance of professional tax in a specific state
inside 30 days of coming under the domain of the applicability of professional tax.
Every expert, the Directors of Company, Designated Partners of the LLP or some
other employer is under obligation to seek registration as specified above and to
ensure that expert professional tax is deducted from the pay of employees.
Reasons to obtain Professional Tax Registration
Statutory Requirement
Avoid Penalty
Tax Deductible
Easy Compliance

28. Documents Required
Address Proof of Establishment (Any Utility Bill and
NOC if Establishment is rented.)
Address Proof of Partners, Proprietor or Directors as
applicable (Driving License, Passport)
PAN Card of Partners, Proprietors and Directors as applicable
Photo of Partners, Proprietors and Directors as applicable
Salary details of Employees
Certificate of Incorporation and Address Proof in case of Company
Financial Statements of Establishment (If it is not first year
of establishment)

29. Some Other Points
The tax is based on slabs depending upon income of individual who may be self
employed or working as employee of an entity. At present the maximum tax that
can be imposed is restricted to is Rs.2500/-.
Professional tax is imposed only in Certain States: Karnataka, Bihar, West Bengal,
Andhra Pradesh, Telangana, Maharashtra, Tamilnadu, Gujarat, Assam, Kerala,
Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.
•In case of individuals who are self employed the tax has to be paid by the
individual himself
•In case of employed individuals, the liability is on the employer
Who is responsible for deducting the tax and
depositing the same with Government?

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