TDS stands for Tax Deduction at Source. It is a mechanism for collecting income tax in India whereby the tax is deducted at source from payments like salary, interest, rent, etc. at the time of payment/credit. The payer has to deduct tax as per rates specified in the Income Tax Act 1961 from the payments made and deposit it with the government. The payer also has to obtain a Tax Deduction Account Number (TAN), file quarterly TDS returns, and issue TDS certificates to the payee. The payee can then claim credit for the TDS while filing their income tax return.

1. TDS
Tax Deduction at Source
Presented By:-
Chandan Kumar Gupta
Chander Kishor
Jatin Valia
Naveen
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2. Contents
1. Introduction
2. Basics
3. Deduction of Tax
4. Due Dates
5. TDS Payments
6. Return Filing
7. Fees/Interest/Penalty
8. TDS Certificate
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3. Introduction
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●It is not another type of Tax rather a way of collection of
Income tax.
●A form of advance tax.
●This concept was first introduced in 2004 on the
principle of “pay as you earn”
●Onus of compliance on Payer (who makes the
expenditure) instead of actual taxpayer i.e assesse
under Income Tax Act 1961.

4. Basics
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Payer deducts tax from payment/credited
Payer deposit tax to Govt
Payer file Return of TDS
Payer issues TDS Certificate to Payee
Payee claims refund of TDS in his ITR

5. ●TAN (Tax deduction Account Number): Every
deductor/payer to obtain TAN except who deduct Tax on
payment for property purchased.
●Composition of TAN: DELH90468K
●Form 49B to be submitted at any TIN-FC (Charges-Rs. 62)
●TAN is used in any TDS related matters (such as
Return/TDS Deposit).
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6. Deduction of Tax
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●Tax has to be deducted @ specified in relevant section.
●Deductor must have PAN of Payee.
●Tax has to be deducted at higher rate (i.e.20 %) in case
non-availability of PAN (Section 206AA).
●Non deduction/Lower Deduction u/s 197/197A
●Form 15G/15H- Self declaration
●Form 13 – Certificate from AO
●Non deduction of TDS of any payment made to RBI,
Govt., Corporation by central act.

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●Section 192 (TDS on Salary):
●Rate: Average rate of Tax payable for FY
●Limit: bujho to jane
●Deduction at the time of payment/credit every month
●Amount of Tax:
●estimated tax for FY/12 month
●For the month of March=Actual Tax Payable-Tax Paid
●Consider: Salary from previous employer & Income from
other sources
●Salary means Salary as under section 17.

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●Section 193 (TDS on Interest on Securities):
●Rate:@ 10%
●Limit:
●On debenture- Rs. 5,000
●On others- Rs. 10,000
●Deduction at the time of credit or payment whichever
is earlier.
●Exempt from provision: NDDB, NSC, Gold Bonds,
Govt securities

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●Section 194 (TDS on Deemed Dividend):
●Rate:@ 10%
●Limit: Rs. 5,000.
●Deduction at the time of credit or payment whichever
is earlier.
●Deemed dividend as under section 2(22)(e).

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●Section 194A (TDS on Interest other than securities):
●Rate:@ 10%
●Limit:
●For banking co.-Rs. 10,000
●For other –Rs. 5,000
●Deduction at the time of credit or payment whichever
is earlier.

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●Section 194B (TDS on lottery/CrosswordnPuzzle):
●Rate:@ 30%
●Limit:- Rs. 10,000
●At the time of payment/credit in cash or kind
●Section 194BB (TDS on Winnings from Horse Race):
●Rate:@ 30%
●Limit:- Rs. 5,000

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●Section 194C (TDS on Contracts):
●Rate:
●Transporter with valid PAN @ 0%
●Individual/HUF @ 1%
●Others @ 2%
●Limit:
●Any single sum credited/paid >= Rs. 30,000 or
●Total Sum credited/paid during FY >= Rs. 75,000
●Deduction at the time of credit or payment whichever
is earlier.

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●Section 194D (TDS on Insurance Commission):
●Rate: @ 10%
●Limit: RS. 20,000
●Section 194EE (TDS on Withdrawals from NSS):
●Rate: @ 20%
●Limit: RS.2,500
●Section 194E (TDS on NR Sport Person/Association):
●Rate: @ 20%
●Amount: Any payment made

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●Section 194F (TDS on Repurchase by MF/UTI):
●Rate: @ 20%
●Amount: Any amount on termination/repurchase of
unit by MF/UTI (prev. deduction u/s 80CCB)
●Section 194G (TDS on commission on Sale of Lottery
Tickets:
●Rate: @ 10%
●Limit: Rs. 1,000

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●Section 194H (TDS on commission/brokerage (other
than Section 194D & 194G:
●Rate: @ 10%
●Limit: Rs. 5,000
●Section 194I (TDS on Rent):
●Rate:
●On Plant & Machinery- @ 2%
●On Land, Building & Furniture- @ 10%
●Limit: Rs. 1,80,000 p.a.

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●Section 194IA (TDS on Purchase of Immovable
Property):
●Rate: @ 1%
●Limit: Rs. 50,00,000
●Amount: Lumpsum or Installment
●Section 194J (TDS on Professional/ Technical fees):
●Rate: @ 10%
●Limit: Rs. 30,000

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●Section 194L (TDS on Compulsory Acquisation of
Capital Assets):
●Rate: @ 10%, Limit: Rs. 1,00,000
●Section 194LA (TDS on Compulsory Acquisation of
Property):
●Rate: @ 10%, Limit:- Rs. 2,00,000
●Section 194LB (TDS on Interest paid ti NR from
Infrastructure Debt Fund):
●Rate: @ 5%

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●Section 194LC (TDS on Interest from Indian
Company to NR or Foreign Company):
●Rate: @ 5%
●Section 195 (TDS on Amount paid to Non-Resident):
●Rate: @ different rate provided in section 195 and
DTAA with that country whichever is beneficial for
Deductee

19. Due Dates
●TDS Payment: (Rule 30(1))
●on every 7day of next month
●TDS of March- 30th April
●TDS Return:
●Every 15th day of following quarter
●Return of Q4- 15th of May
●Issuance of TDS Certificate(Rule 31):
●Within 15 days from due date of TDS Return (Non- Salary)
●Within 15 days from due date of TDS Return of Q4 (Salary)
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20. TDS PAYMENTS
● Challan: in challan no. 281
● Only online payment to be made
● TDS on Property to be paid along with Return in
Form 26QB (within 7th day of the following month)
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21. Return Filing
● Return can only be made electronic form as per
scheme launched in 2003.
● RPU (Return preparer utility is made available by
NSDL for processing of TDS Return)
● Based on RPU, a number of software are available
in market for processing of Return such as compu-
TDS
● FVU (File Validation Utility) file generated from the
software/ utility to be submitted to TIN-FC alongwith
Verification Form (Form 27A)
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22. List of Form used in Return
● Form 24Q-Salary
● Form 26Q- Non Salary
● Form 26QB- TDS on Property
● Form 27Q- Other than Salary to Non Resident
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23. TDS CERTIFICATE
● Form 16- Salary
● Form 16A- Non Salary
● Form 16B- TDS on Property
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24. Fees/ Interest/ Penalty
● For Return Filing/uploading at NSDL:
● Upto 100 entries:- RS. 35
● Upto 1000 entries:- Rs. 200
● More than 1000 entries:- 600
● For late payment of TDS:- 1.5 % p.m
● For late filing of TDS Return:-
● Rs. 200 per day or
● Amount equal to TDS amount in the quarter
● Whichever is lower
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