This document provides details on tax deducted at source (TDS) rates, thresholds, and due dates for the financial year 2016-17 as per the Indian Income Tax Act. It includes the TDS rate charts listing the tax deduction rates for various types of payments made to residents and non-residents. It also provides notes on aspects like surcharge, education cess, consequences of non-furnishing of PAN number, and exceptions for individual/HUF deductors.
The document discusses the provisions for tax deducted at source (TDS) in India. It provides details on the types of payments that are covered under TDS, including salary, interest, dividends, rent, professional fees, etc. It explains the rate of tax deduction for different payments and the requirements for deductors to obtain a Tax Deduction Account Number (TAN) and file quarterly returns. The purpose of TDS is to collect tax on income at the time it accrues to avoid tax evasion.
Tds Presentation as per Finance Act, 2014Manu Katare
1) TDS refers to the deduction of tax at source on certain specified payments. Key provisions around TDS are covered under Chapter XVII-B of the Income Tax Act, 1961.
2) The document outlines various sections related to TDS such as 192 on salaries, 194 on dividends, 194A on interest, 194C on payments to contractors, and exceptions to these sections.
3) It also discusses the rates of TDS to be applied based on the nature of the deductee, including the applicability of surcharge and education cess in case of companies, foreign companies, and non-residents.
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
This document outlines the tax deduction at source (TDS) compliance process in India. It applies to all corporate and government deductors who are required to get their accounts audited. The key steps are: 1) apply for and obtain a TAN number; 2) deduct tax from applicable payments like salaries, interest, rent, etc. at the time of payment or credit; 3) deposit the deducted tax with the government treasury by the due dates; 4) file quarterly electronic TDS returns; and 5) issue TDS certificates to deductees. Failure to comply can result in penalties like interest charges, fines, and in severe cases, imprisonment.
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.
Tax deducted at source (TDS) for interest on securities (debentures) – Sectio...OnlineITreturn
Barring certain exception, tax has to be deducted at source on payment of interest on securities to residents.Who is liable to deduct TDS? Any assessee be it Individual, company, HUF , Partnership etc.
For whom should TDS be deducted? From Resident assessee (individual, company, HUF etc) to whom interest is paid
This document provides information on tax deducted at source (TDS) rates for the financial year 2014-2015 in India, including:
- TDS rates for various sections like 194A, 194C, 194D etc for individuals/HUF and others.
- Notes on not adding surcharge/education cess, deducting 20% TDS if PAN not provided, and software acquisition.
- Due dates for TDS payment, return filing, and certificate issuance monthly from April 2014 to March 2015.
- Events that attract penalties like failing to deduct/deposit TDS, providing incorrect details in TDS return, and failing to furnish TDS return.
The document discusses the provisions for tax deducted at source (TDS) in India. It provides details on the types of payments that are covered under TDS, including salary, interest, dividends, rent, professional fees, etc. It explains the rate of tax deduction for different payments and the requirements for deductors to obtain a Tax Deduction Account Number (TAN) and file quarterly returns. The purpose of TDS is to collect tax on income at the time it accrues to avoid tax evasion.
Tds Presentation as per Finance Act, 2014Manu Katare
1) TDS refers to the deduction of tax at source on certain specified payments. Key provisions around TDS are covered under Chapter XVII-B of the Income Tax Act, 1961.
2) The document outlines various sections related to TDS such as 192 on salaries, 194 on dividends, 194A on interest, 194C on payments to contractors, and exceptions to these sections.
3) It also discusses the rates of TDS to be applied based on the nature of the deductee, including the applicability of surcharge and education cess in case of companies, foreign companies, and non-residents.
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
This document outlines the tax deduction at source (TDS) compliance process in India. It applies to all corporate and government deductors who are required to get their accounts audited. The key steps are: 1) apply for and obtain a TAN number; 2) deduct tax from applicable payments like salaries, interest, rent, etc. at the time of payment or credit; 3) deposit the deducted tax with the government treasury by the due dates; 4) file quarterly electronic TDS returns; and 5) issue TDS certificates to deductees. Failure to comply can result in penalties like interest charges, fines, and in severe cases, imprisonment.
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.
Tax deducted at source (TDS) for interest on securities (debentures) – Sectio...OnlineITreturn
Barring certain exception, tax has to be deducted at source on payment of interest on securities to residents.Who is liable to deduct TDS? Any assessee be it Individual, company, HUF , Partnership etc.
For whom should TDS be deducted? From Resident assessee (individual, company, HUF etc) to whom interest is paid
This document provides information on tax deducted at source (TDS) rates for the financial year 2014-2015 in India, including:
- TDS rates for various sections like 194A, 194C, 194D etc for individuals/HUF and others.
- Notes on not adding surcharge/education cess, deducting 20% TDS if PAN not provided, and software acquisition.
- Due dates for TDS payment, return filing, and certificate issuance monthly from April 2014 to March 2015.
- Events that attract penalties like failing to deduct/deposit TDS, providing incorrect details in TDS return, and failing to furnish TDS return.
The document discusses various provisions related to tax deducted at source (TDS) in India. It explains the objectives of TDS which include helping report correct incomes, check tax evasion, and widen the tax net. It discusses key sections like 192 on payment of salaries, 193 on interest on securities, 194 on dividends, 194A on interest other than interest on securities, and common provisions around rate of TDS, threshold limits for deduction, and procedures.
TDS provisions in India require certain payers to deduct tax at source from payments made to residents.
Section 192 covers TDS on salaries and requires employers to deduct tax as per the individual's tax slab. Section 193 covers TDS on interest payments like interest on securities and debentures, with rates varying based on the type of security and payee. Section 194 covers TDS on dividends which must be deducted by companies before making payments to shareholders.
TDS is required to be deducted from payments made to resident contractors or sub-contractors under section 194C of the Income Tax Act if the aggregate amount exceeds Rs. 75,000 in a financial year. TDS of 1% or 2% depending on the recipient must be deducted unless the PAN is not quoted, in which case the rate is 20%. The deducted TDS must be deposited with the government within 7 days of the end of the month in which the deduction was made.
This document provides an overview of tax deducted at source (TDS) in India. It defines TDS as tax that is deducted from certain types of payments, including salaries, interest, rent, and professional fees. The objectives of TDS are to help report accurate incomes, check tax evasion, allow early collection of revenue by the government, and make tax collection cheaper and widen the tax base. The document then lists some key TDS rates and exemption limits under different sections of the Indian Income Tax Act for common types of payments.
ASSOCHAM - TDS provisions related to Residents - Sandeep JhunjhunwalaSandeep Jhunjhunwala
TDS provisions outline the key aspects of tax deducted at source for residents in India. TDS helps expand the tax net by ensuring regular tax collection and acts as an obligation for deductors. Key points covered include TDS on salary and interest, e-filing of returns, and issues related to TDS refunds and certificates. Recent updates provide clarification on new Form 12BB required from employees for tax deductions claimed.
1. Advance tax, TDS, and TCS are the major modes of collecting tax at source during or before the financial year.
2. Advance tax is paid voluntarily by taxpayers in installments over the course of the financial year based on their estimated annual income.
3. TDS involves the deduction of tax at source from certain specified payments like salaries, rent, professional fees, etc. at prescribed rates by the deductors.
4. TCS involves the collection of tax by certain buyers from sellers at the time of sale of specified goods like scrap, bullion, jewellery above a threshold limit at prescribed rates.
TDS is a mechanism where a person deducts tax at the time of making certain specified payments to another person. Key persons responsible for deducting TDS (deductors) include company principals, DDOs in government offices, and those making payments of interest, dividends, contracts, lottery/game winnings, etc. Deductors must obtain a TAN, deduct tax at the correct rate, deposit the deducted amount timely, issue TDS certificates, and file quarterly TDS statements in the prescribed format and by the due dates. Maintaining compliance is important to ensure deductees get proper tax credit and deductors avoid penalties.
The presentation discusses the key provisions and procedures related to Tax Deducted at Source (TDS) in India. It explains that TDS is a form of advance tax collection where the onus is on the payer to deduct tax and deposit it with the government. It outlines the TDS process flow and key sections related to TDS for salaries, interest, rent, professional fees, and other payments. It provides thresholds limits for deducting TDS and due dates for payment. The presentation emphasizes best practices for TDS compliance to avoid penalties.
The document summarizes changes made to tax deducted at source (TDS) provisions by the Finance Act of 2020. Several existing sections related to TDS were amended and new sections for TDS on various types of payments were introduced. Key changes include amendments to TDS for dividends, interest, technical services fees, and mutual fund income. New sections introduce TDS for cash withdrawals, business trust unit income, and e-commerce participant payments. The changes are effective from financial years 2020-21 onward.
Tax deducted at source (TDS) involves deducting income tax from certain types of payments and depositing this amount with the government. The document discusses TDS concepts like scope, applicable incomes, TDS rates, TAN registration, deductors, deductees, and configuring TDS in Tally ERP 9 software. It provides steps to enable TDS in a company, set up TDS statutory masters for nature of payments and deductee types, and create necessary expense and party ledgers for accounting TDS transactions.
This document provides an overview of Tax Deducted at Source (TDS) in India. TDS requires those making certain payments to deduct tax from the payment. Payments subject to TDS include payments to professionals, contractors, brokers, landlords and employees. The tax deducted must be deposited with the government by the 7th of the following month. Businesses must also file quarterly TDS returns by the 15th of the following quarter to report taxes deducted and deposited. The objective of TDS is to reduce tax evasion by creating a record of payments through tax deductions and returns.
This document discusses tax deductible at source in India. It defines key terms like deductor and deductee. It outlines various types of payments that are subject to tax deduction at source, such as salaries, interest, dividends, lottery winnings, and payments to contractors. For each type of payment, it specifies who is responsible for deducting tax, the applicable tax rates, and any important additional details.
TDS, TCS, and advance payment of tax refer to India's tax collection methods where:
1) TDS requires deductors to withhold a percentage of certain payments like salaries and interest and deposit it with the government. It helps collect taxes in advance and expand the tax net.
2) TCS requires sellers to collect tax from buyers when receiving payment for specified goods.
3) Advance tax must be paid in installments by those with tax liability over Rs. 10,000, before the end of the fiscal year based on estimated income.
This document provides an overview of tax deducted at source (TDS) in India. It defines TDS and explains that it is a mechanism for collecting income tax by deducting taxes from payments made to recipients. It outlines who is required to deduct TDS, their responsibilities, applicable tax rates and payments that attract TDS. It also summarizes provisions related to tax collected at source (TCS), due dates for depositing TDS/TCS, filing returns and issuing TDS certificates.
This document provides an overview of the tax deducted at source (TDS) and tax collection at source (TCS) processes under the Indian Income Tax Act 1961. It discusses key aspects like the types of taxes covered, provisions for deducting and depositing TDS, declaration and filing of TDS returns. The deadlines for depositing and filing TDS for different quarters are specified. The document also describes the process for preparing, validating and submitting electronic TDS returns using tools like RPU and FVU software along with the required Form 27A.
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, deposit the deducted tax with the government, file quarterly TDS returns, and issue annual TDS certificates to the payee. The payee can then claim credit for the TDS while filing their income tax return. The document outlines the basics of TDS, rates of deduction for different types of payments, due dates for depositing deducted taxes, filing returns and issuing certificates
This document outlines various sections related to tax deducted at source (TDS) in India. It discusses key details about TDS deductions like rates, thresholds and applicable sections for common payments like salary (192), interest (194A), rent (194I), professional fees (194J), and others. It also covers TDS on payments to non-residents under sections 195, 196B, 196C and 196D. The document provides a comprehensive reference for individuals and organizations to understand their TDS obligations in India.
This document defines key concepts related to income tax in India. It discusses the difference between direct and indirect taxes. It defines important terms like assessee, previous year, assessment year, heads of income, and residential status. It explains the criteria for determining the residential status of individuals, HUFs, and companies as either resident, non-resident, or not ordinarily resident. It also provides an example to illustrate how to determine an individual's residential status.
The document provides an overview of basic concepts related to income tax in India, including definitions of key terms like tax, direct tax, indirect tax, income, assessee, capital/revenue receipts and expenditures. It explains that the Income Tax Act of 1961 governs income tax and its provisions for determining taxable income and tax liability. Income includes various sources like profits, dividends, capital gains, interest etc. Computation of taxable income involves calculating income under different heads, applying deductions and exemptions, and determining the final tax liability.
The document discusses various provisions related to tax deducted at source (TDS) in India. It explains the objectives of TDS which include helping report correct incomes, check tax evasion, and widen the tax net. It discusses key sections like 192 on payment of salaries, 193 on interest on securities, 194 on dividends, 194A on interest other than interest on securities, and common provisions around rate of TDS, threshold limits for deduction, and procedures.
TDS provisions in India require certain payers to deduct tax at source from payments made to residents.
Section 192 covers TDS on salaries and requires employers to deduct tax as per the individual's tax slab. Section 193 covers TDS on interest payments like interest on securities and debentures, with rates varying based on the type of security and payee. Section 194 covers TDS on dividends which must be deducted by companies before making payments to shareholders.
TDS is required to be deducted from payments made to resident contractors or sub-contractors under section 194C of the Income Tax Act if the aggregate amount exceeds Rs. 75,000 in a financial year. TDS of 1% or 2% depending on the recipient must be deducted unless the PAN is not quoted, in which case the rate is 20%. The deducted TDS must be deposited with the government within 7 days of the end of the month in which the deduction was made.
This document provides an overview of tax deducted at source (TDS) in India. It defines TDS as tax that is deducted from certain types of payments, including salaries, interest, rent, and professional fees. The objectives of TDS are to help report accurate incomes, check tax evasion, allow early collection of revenue by the government, and make tax collection cheaper and widen the tax base. The document then lists some key TDS rates and exemption limits under different sections of the Indian Income Tax Act for common types of payments.
ASSOCHAM - TDS provisions related to Residents - Sandeep JhunjhunwalaSandeep Jhunjhunwala
TDS provisions outline the key aspects of tax deducted at source for residents in India. TDS helps expand the tax net by ensuring regular tax collection and acts as an obligation for deductors. Key points covered include TDS on salary and interest, e-filing of returns, and issues related to TDS refunds and certificates. Recent updates provide clarification on new Form 12BB required from employees for tax deductions claimed.
1. Advance tax, TDS, and TCS are the major modes of collecting tax at source during or before the financial year.
2. Advance tax is paid voluntarily by taxpayers in installments over the course of the financial year based on their estimated annual income.
3. TDS involves the deduction of tax at source from certain specified payments like salaries, rent, professional fees, etc. at prescribed rates by the deductors.
4. TCS involves the collection of tax by certain buyers from sellers at the time of sale of specified goods like scrap, bullion, jewellery above a threshold limit at prescribed rates.
TDS is a mechanism where a person deducts tax at the time of making certain specified payments to another person. Key persons responsible for deducting TDS (deductors) include company principals, DDOs in government offices, and those making payments of interest, dividends, contracts, lottery/game winnings, etc. Deductors must obtain a TAN, deduct tax at the correct rate, deposit the deducted amount timely, issue TDS certificates, and file quarterly TDS statements in the prescribed format and by the due dates. Maintaining compliance is important to ensure deductees get proper tax credit and deductors avoid penalties.
The presentation discusses the key provisions and procedures related to Tax Deducted at Source (TDS) in India. It explains that TDS is a form of advance tax collection where the onus is on the payer to deduct tax and deposit it with the government. It outlines the TDS process flow and key sections related to TDS for salaries, interest, rent, professional fees, and other payments. It provides thresholds limits for deducting TDS and due dates for payment. The presentation emphasizes best practices for TDS compliance to avoid penalties.
The document summarizes changes made to tax deducted at source (TDS) provisions by the Finance Act of 2020. Several existing sections related to TDS were amended and new sections for TDS on various types of payments were introduced. Key changes include amendments to TDS for dividends, interest, technical services fees, and mutual fund income. New sections introduce TDS for cash withdrawals, business trust unit income, and e-commerce participant payments. The changes are effective from financial years 2020-21 onward.
Tax deducted at source (TDS) involves deducting income tax from certain types of payments and depositing this amount with the government. The document discusses TDS concepts like scope, applicable incomes, TDS rates, TAN registration, deductors, deductees, and configuring TDS in Tally ERP 9 software. It provides steps to enable TDS in a company, set up TDS statutory masters for nature of payments and deductee types, and create necessary expense and party ledgers for accounting TDS transactions.
This document provides an overview of Tax Deducted at Source (TDS) in India. TDS requires those making certain payments to deduct tax from the payment. Payments subject to TDS include payments to professionals, contractors, brokers, landlords and employees. The tax deducted must be deposited with the government by the 7th of the following month. Businesses must also file quarterly TDS returns by the 15th of the following quarter to report taxes deducted and deposited. The objective of TDS is to reduce tax evasion by creating a record of payments through tax deductions and returns.
This document discusses tax deductible at source in India. It defines key terms like deductor and deductee. It outlines various types of payments that are subject to tax deduction at source, such as salaries, interest, dividends, lottery winnings, and payments to contractors. For each type of payment, it specifies who is responsible for deducting tax, the applicable tax rates, and any important additional details.
TDS, TCS, and advance payment of tax refer to India's tax collection methods where:
1) TDS requires deductors to withhold a percentage of certain payments like salaries and interest and deposit it with the government. It helps collect taxes in advance and expand the tax net.
2) TCS requires sellers to collect tax from buyers when receiving payment for specified goods.
3) Advance tax must be paid in installments by those with tax liability over Rs. 10,000, before the end of the fiscal year based on estimated income.
This document provides an overview of tax deducted at source (TDS) in India. It defines TDS and explains that it is a mechanism for collecting income tax by deducting taxes from payments made to recipients. It outlines who is required to deduct TDS, their responsibilities, applicable tax rates and payments that attract TDS. It also summarizes provisions related to tax collected at source (TCS), due dates for depositing TDS/TCS, filing returns and issuing TDS certificates.
This document provides an overview of the tax deducted at source (TDS) and tax collection at source (TCS) processes under the Indian Income Tax Act 1961. It discusses key aspects like the types of taxes covered, provisions for deducting and depositing TDS, declaration and filing of TDS returns. The deadlines for depositing and filing TDS for different quarters are specified. The document also describes the process for preparing, validating and submitting electronic TDS returns using tools like RPU and FVU software along with the required Form 27A.
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, deposit the deducted tax with the government, file quarterly TDS returns, and issue annual TDS certificates to the payee. The payee can then claim credit for the TDS while filing their income tax return. The document outlines the basics of TDS, rates of deduction for different types of payments, due dates for depositing deducted taxes, filing returns and issuing certificates
This document outlines various sections related to tax deducted at source (TDS) in India. It discusses key details about TDS deductions like rates, thresholds and applicable sections for common payments like salary (192), interest (194A), rent (194I), professional fees (194J), and others. It also covers TDS on payments to non-residents under sections 195, 196B, 196C and 196D. The document provides a comprehensive reference for individuals and organizations to understand their TDS obligations in India.
This document defines key concepts related to income tax in India. It discusses the difference between direct and indirect taxes. It defines important terms like assessee, previous year, assessment year, heads of income, and residential status. It explains the criteria for determining the residential status of individuals, HUFs, and companies as either resident, non-resident, or not ordinarily resident. It also provides an example to illustrate how to determine an individual's residential status.
The document provides an overview of basic concepts related to income tax in India, including definitions of key terms like tax, direct tax, indirect tax, income, assessee, capital/revenue receipts and expenditures. It explains that the Income Tax Act of 1961 governs income tax and its provisions for determining taxable income and tax liability. Income includes various sources like profits, dividends, capital gains, interest etc. Computation of taxable income involves calculating income under different heads, applying deductions and exemptions, and determining the final tax liability.
This document discusses concepts of taxation including definitions, principles, theories, structures, and characteristics of tax systems. It defines taxation as the process by which governments raise revenue to fund expenses through mandatory contributions imposed on individuals and organizations. The key principles discussed are the benefit principle, ability-to-pay principle, and equal-distribution principle. Taxes can be proportional, regressive, or progressive based on rates. The document also outlines forms of tax exemption and avoidance.
The document appears to contain information about various Indian taxes including income tax, sales tax, wealth tax, and service tax. It provides definitions and key details about the different types of taxes such as the tax rates, applicable entities, exemptions, and controversies in certain areas. It also summarizes the objectives and issues with some of these taxes in India.
This document provides an overview of taxation in India. It discusses the history of income tax, which was first introduced in India in 1860. It outlines the various tax authorities in India, including central and state governments and municipalities. It defines key terms related to taxation like income, assessment year, and previous year. It also provides examples of statements showing taxable income from sources like salary, house property, business/profession, and a summary statement of total taxable income. Finally, it briefly discusses value-added tax.
1. Salary is remuneration received periodically for services rendered as a result of an employment contract. TDS or tax deducted at source is income tax deducted from salary payments.
2. To calculate TDS, the total gross salary is determined, exemptions are subtracted to get the taxable salary, and annual taxable income is projected. Deductions are then subtracted to get the total taxable income.
3. Based on the tax slabs, the annual tax liability is calculated. The monthly TDS amount is the annual tax divided by 12 months.
This document discusses Form 15 CB/15 CA and provides guidance on properly completing and using these forms.
It begins by outlining the target audience for the discussion, which includes professionals looking to start or expand their practice in this area as well as those without much experience.
The presentation then covers the key takeaways, which are understanding the objective and importance of Form 15 CB and 15 CA, the procedures and processes for implementation, how to determine the nature of remittances, understanding chargeability under the Income Tax Act and DTAAs, and how to protect one's own and client's interests.
It emphasizes the growing importance of Form 15 CA/CB due to increased cross-border payments, revenue
The document discusses the requirements and procedures for filing Form 15CA and Form 15CB for making payments to non-residents in India.
Form 15CA is a declaration that must be filed by the remitter along with a certificate from a chartered accountant in Form 15CB when making remittances exceeding Rs. 50,000 or an aggregate of over Rs. 2,50,000 in a year. Form 15CA captures details of the remitter, recipient and remittance amount, while Form 15CB contains the chartered accountant's determination of taxability.
Specific information to be provided in each form is outlined, including the remitter and recipient's identification details, bank transfer information
By consistently monitoring and keeping track of the changing statutory norms and regulations, we at Offshore Accounting & Taxation Services (OATS) aim to reduce risk for the clients and bring high levels of efficiency in our process.
Canadian tax preparation course 11 01-2015 -basics of individual tax return Bayezid Farooque
This document provides an overview of an introductory course on Canadian individual income tax return preparation. The course objectives are to teach students how to prepare basic individual tax returns for employed persons and families with common income sources like T4s, interest, dividends, and claims for dependents. More complex tax situations will be covered in an advanced course. The document outlines topics to be covered, principles of the Canadian tax system, and administration details like tax filing requirements and due dates.
Reverse charge and Latest Issues in Service TaxCA Gaurav Gupta
1. Reverse charge mechanism in service tax was first introduced in 1997 for goods transport agency and clearing agents services but was struck down by the Supreme Court. It was reintroduced in 2000 and 2003 and upheld by the Supreme Court.
2. The scope of reverse charge was expanded in 2014 to cover 11 additional services including legal services, rent a cab, manpower supply, works contract, and services by non-residents.
3. Under reverse charge, the liability to pay service tax shifts from the service provider to the service recipient. The presentation discusses the implications of reverse charge on invoicing, CENVAT credit availment, and other compliance aspects.
The document summarizes key aspects of the Direct Tax Code (DTC) 2010 introduced in India. Some key points:
1. The DTC 2010 aims to replace the existing Income Tax Act 1961 and simplify direct tax laws using simple language. It consolidates various direct tax laws into a single code.
2. Major changes include a single slab for all individuals (0-30% tax), corporate tax rate reduced to 30%, wealth tax rate cut to 0.25%, capital gains tax treated separately.
3. The DTC proposes the EET model for taxing investments and aims to promote long-term investments. Key dates for tax filing also changed to 30th June and 31st August.
This document discusses advance tax in India. Advance tax must be paid if tax liability is Rs. 5,000 or more. It is paid in installments throughout the previous year by both corporate and non-corporate assessees. For non-corporate assessees, installments are due on September 15, December 15, and March 15. For corporate assessees, installments are due on June 15, September 15, December 15, and March 15. Advance tax aims to collect tax revenue earlier and is also known as the "pay as you earn" scheme since tax is paid as income is earned in the previous year.
The document summarizes key changes to India's service tax regime introduced in the 2012 budget, including expanding the scope of services covered, increasing the general rate to 12%, and introducing a reverse charge mechanism. Under the reverse charge mechanism, liability to pay service tax is shifted wholly or partially from service providers to service receivers for certain specified services. This places additional compliance burdens on service receivers. The changes aim to prepare taxpayers for the proposed Goods and Services Tax to be introduced in April 2013.
The document defines key terms related to income tax in India such as assessee, person, assessment year, previous year, types of income, and tax rates. It discusses how taxable income is calculated based on income from different sources such as salary, house property, business, capital gains, and other sources. It also outlines the incidence of tax for residents and non-residents depending on where the income is earned and received.
Finance Act 2016 Amendments in Income Tax Laws - A Y 2017-18CA Janardhana Gouda
Finance Act 2016 Amendments in Income Tax Laws applicable for Assessment year 2017-18 on wards. Major Amendments for Individuals, Companies and Changes in TDS and TCS Provisions etc
The Employee Provident fund is deducted from the Employee’s monthly salary. The employer also contributes to the PF fund. From 1st September 2014, the EPFO has revised the basic wage limit on which PF contribution will be done from Rs. 6500 to Rs. 15000. Employers have to revise the PF deductions from September 2014 onward for all employees whose basic salary is less than or equal to Rs. 15000.
Learn about the new guidelines for PF deductions and filing of the monthly returns with EPFO with the record of our training webinar.
Save time and manage your PF activities with minimal efforts using greytHR
This document provides a TDS-TCS rate chart for the financial year 2013-14 published by www.simpletaxindia.net. It lists the tax deduction at source rates for various types of payments like salaries, interest, contracts, commissions etc. along with applicable thresholds. It also provides details on TCS rates, due dates for depositing TDS-TCS, situations where surcharge and cess are applicable, consequences of default and duties of the tax deductor. The key highlights are the TDS rates for various payments, TCS rates on specified goods or services, due dates to deposit the deducted or collected tax, and penalties for non-compliance.
This document provides an overview of key Indian tax rates, rules, and regulations for the assessment years 2021-22 and 2022-23. It summarizes income tax slabs and rates for individuals, HUF, firms, companies and cooperative societies. It also outlines key tax deducted at source provisions around applicable thresholds and rates for common income types like salary, interest, dividends, rent, professional fees, and payments to contractors.
This document provides the TDS and TCS rate charts for the financial year 2021-22 in India. It outlines the various sections where tax is deducted at source, the threshold limits, and applicable tax rates. Some key points include:
- TDS is deducted on interest, dividends, professional fees, rent, commission, contract payments, and withdrawals over certain thresholds at rates ranging from 1-30%.
- TCS is collected on scrap, tendu leaves, minerals, liquor, parking lots, motor vehicle sales, overseas tour packages, and goods sales over Rs. 50 lakhs at 0.1-5%.
- Higher rates of TDS/TCS apply to non-
TDS stands for Tax Deducted at Source. As per the Income Tax Act, any person or company making certain types of payments above a threshold amount is required to deduct tax from the payment. This deducted tax is then deposited with the government. Common types of payments where TDS applies include salaries, rent, contract payments, professional fees, interest payments, and others. It is the responsibility of the deductor to deduct TDS at the time of making the payment and deposit it with the government on time. The deductee can claim tax credit for the TDS amount deducted based on the TDS certificate provided by the deductor.
This document discusses various provisions related to tax deduction and collection at source in India. It covers sections 192-195 of the Income Tax Act which deal with TDS on salary, interest, contracts, commission, rent, professional fees and payments to non-residents. It also discusses section 206C dealing with tax collection at source and the penal consequences for non-compliance with these TDS and TCS provisions.
TDS stands for tax deducted at source, where any person making certain types of payments is required to deduct tax from the payment and deposit it with the government. The key points covered are:
- Common sections related to TDS include 192 (salaries), 193 (interest), 194A (other interest), 194C (contractors), among others.
- Rates and thresholds vary based on the type of payment and recipient. Rates are typically 10-20% and thresholds are amounts like Rs. 30,000 for contractors.
- The payer is responsible for depositing the TDS, issuing certificates to payees, and filing annual returns. Payees can claim credit for TDS against
Our Tax team has summarised the important compliance related provisions of Income Tax Act 1961 and prepared the compliance hand book for easy reference.
Changes made by Finance Act 2017 and TCS related provisionsLokesh Bachchani
1. The document discusses key amendments made in the Income Tax Act relating to tax collection at source (TCS), tax deducted at source (TDS), rates of income tax, and capital gains tax.
2. Notable changes include a reduction in TCS rates for certain goods and services, an increase in the threshold for TCS on sale of motor vehicles, and restrictions on cash transactions exceeding Rs. 10,000.
3. Income tax rates were reduced for individuals with income up to Rs. 5 lakhs and the surcharge threshold was increased. The holding period for assets to qualify as long-term was reduced to 24 months.
This document provides an overview of tax deducted at source (TDS) provisions in India. It discusses the key sections of the Income Tax Act related to TDS on salaries, interest, rent, professional fees, and other payments. It outlines the applicable TDS rates, thresholds for deduction, deadlines for depositing deducted taxes, and penalties for non-compliance. The presentation aims to help understand TDS requirements and consequences of any defaults in deduction or payment of TDS.
This document discusses various aspects of section 195 of the Indian Income Tax Act, which deals with tax deducted at source (TDS) for payments made to non-residents. Some key points discussed include:
- Section 195 mandates any person making payments such as interest, royalty or fees for technical services to non-residents to deduct TDS at the time of payment.
- The rate of TDS depends on factors such as whether a lower treaty rate can be applied based on a tax residency certificate.
- Non-compliance can attract penalties for the payer such as interest, fines and in some cases prosecution.
- Exceptions apply when a lower or nil withholding certificate is obtained
The document discusses procedures related to foreign payments and tax deducted at source (TDS) requirements in India.
It outlines the process for remitting funds abroad including obtaining certificates from an accountant (Form 15CB) and submitting forms like 15CA along with bills to the authorized dealer. TDS is required to be deducted on payments to non-residents at prescribed rates under the Income Tax Act or applicable double taxation avoidance agreement.
The consequences of non-compliance with TDS obligations are also summarized, such as disallowance of expenses or penalty equal to the amount of short/non deduction of tax. The applicability of the Income Tax Act or DTAA for charging different types of income like business
The document summarizes direct tax proposals in the Indian Budget for 2016-2017, including:
- Threshold income limits and tax rates will largely remain the same, with some small increases to rebates and limits. Surcharge will be increased for higher income levels.
- New tax incentives are proposed for start-ups. Several deductions will be phased out over time, with lower percentages allowed until full removal.
- Changes also include increased TDS thresholds, taxation of dividends over Rs. 10 lakhs, and introduction of presumptive taxation schemes for professionals and businesses with income under Rs. 50-100 lakhs.
This document provides information on TDS requirements for foreign remittances under Indian law. It notes that TDS must be deducted on payments to non-residents according to section 195 of the Income Tax Act. Form 15CA must be filed for remittances over Rs. 50,000 or Rs. 2.5 lakhs annually along with Form 15CB from a chartered accountant. The proper procedure for deducting and depositing TDS is outlined. Implications of sections 195, 206AA, and tax treaties are discussed. The importance of obtaining a tax residency certificate for claiming treaty benefits is also explained.
Budget 2016 was recently announced by the Finance Minister of India. This Presentation unravels the Transfer Pricing and International Tax proposals of the Budget 2016.
Summary:
The Tax Deducted at Source (TDS) rate chart for the financial year 2023-24 provides a comprehensive guide to the tax provisions under the Income Tax Act. It covers different categories of taxpayers, including resident individuals, Hindu Undivided Families (HUF), domestic companies, non-resident Indians (NRIs), and foreign companies. The chart includes the latest updates and amendments introduced in the Union Budget 2023.
For resident individuals and HUF, TDS rates vary based on the nature of payment, such as salary, interest, dividend, rent, professional fees, and more. Notable changes include the introduction of Section 194R for TDS on providing benefits or perquisites to businesses and Section 194S for TDS on crypto income.
Responsibilities of the person deducting TDS include obtaining a Tax Deduction Account Number (TAN), deducting TDS at the applicable rate, depositing the tax to the government, filing TDS statements, and issuing TDS certificates to the payee.
Specific transactions, like the sale of immovable property and rent payments not covered under Section 194-I, have unique TDS provisions. The chart also outlines TDS rates for domestic companies and non-resident Indians/foreign companies.
The TDS rate chart serves as a crucial tool for taxpayers to ensure compliance with the dynamic regulatory landscape, and staying informed is key to avoiding penalties and interest on TDS-related matters. VirtualGGC offers expert services to assist taxpayers in managing TDS rates effectively. The chart also includes FAQs covering the basics of TDS, its working, and the key elements of the FY 2023-24 TDS rate chart.
This document provides information about tax deducted at source (TDS) in India, including procedures for deducting, depositing, filing returns, and claiming refunds. It discusses who is responsible for deducting TDS and key details like rates, thresholds, due dates, and forms used. The summary also outlines the steps for preparing an electronic (e-TDS) return, including using TDS return software, applicable filing deadlines, and documents required.
For Salient Features of Union Budget 2017 created by Lunawat Team click at - http://lunawat.com/Uploaded_Files/Attachments/F_3558.pdf
Regards
CA Pramod Jain
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.
The document discusses the newly inserted provisions of TDS and TCS under Section 194Q and 206C(1H) effective from July 1, 2021. Some key points:
- Section 194Q provides for TDS of 0.1% by the buyer on payments exceeding Rs. 50 lakhs for purchase of goods to resident sellers. TDS is applicable if buyer's turnover exceeds Rs. 10 crores.
- Section 206C(1H) provides for TCS of 0.1% by the seller on receipts exceeding Rs. 50 lakhs from the sale of goods to buyers if seller's turnover exceeds Rs. 10 crores.
- Sections 206AB and 206CCA provide
Safeguarding Against Financial Crime: AML Compliance Regulations DemystifiedPROF. PAUL ALLIEU KAMARA
To ensure the integrity of financial systems and combat illicit financial activities, understanding AML (Anti-Money Laundering) compliance regulations is crucial for financial institutions and businesses. AML compliance regulations are designed to prevent money laundering and the financing of terrorist activities by imposing specific requirements on financial institutions, including customer due diligence, monitoring, and reporting of suspicious activities (GitHub Docs).
Capital Punishment by Saif Javed (LLM)ppt.pptxOmGod1
This PowerPoint presentation, titled "Capital Punishment in India: Constitutionality and Rarest of Rare Principle," is a comprehensive exploration of the death penalty within the Indian criminal justice system. Authored by Saif Javed, an LL.M student specializing in Criminal Law and Criminology at Kazi Nazrul University, the presentation delves into the constitutional aspects and ethical debates surrounding capital punishment. It examines key legal provisions, significant case laws, and the specific categories of offenders excluded from the death penalty. The presentation also discusses recent recommendations by the Law Commission of India regarding the gradual abolishment of capital punishment, except for terrorism-related offenses. This detailed analysis aims to foster informed discussions on the future of the death penalty in India.
सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
A Critical Study of ICC Prosecutor's Move on GAZA WarNilendra Kumar
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Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...AHRP Law Firm
Law Number 13 of 2003 on Manpower has been partially revoked and amended several times, with the latest amendment made through Law Number 6 of 2023. Attention is drawn to a specific part of the Manpower Law concerning severance pay. This aspect is undoubtedly one of the most crucial parts regulated by the Manpower Law. It is essential for both employers and employees to abide by the law, fulfill their obligations, and retain their rights regarding this matter.
Corporate Governance : Scope and Legal Frameworkdevaki57
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Business law for the students of undergraduate level. The presentation contains the summary of all the chapters under the syllabus of State University, Contract Act, Sale of Goods Act, Negotiable Instrument Act, Partnership Act, Limited Liability Act, Consumer Protection Act.
The presentation deals with the concept of Right to Default Bail laid down under Section 167 of the Code of Criminal Procedure 1973 and Section 187 of Bharatiya Nagarik Suraksha Sanhita 2023.
1. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
TDS RATE CHART 2016-17
BY WWW.SIMPLETAXINDIA.NET
VERSION: 2 UPDATED: 23/05/2016
REPORT ERROR: RANIRAJ1950@GMAIL.COM
CHECK LATEST VERSION HERE
2. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
1. TDS RATE CHART FY 2016-17 AY 2017-18
TDS RATE CHART FY 2016-17 AY 2017-18 (%)
Sec Nature of Payment Cut off (Rs.) Indi/HUF Others
192 Salaries - Avg
rates
NA
192A Premature withdrawal from EPF 30000 (50000) 10 NA
193 Interest on securities 10000 10
194 Dividends 2500 10
194A Interest Banks/Other 10000/5000 10
194B Winning from Lotteries 10000 30
194BB Winnings from Horse Race 5000 (10000) 30
194C
Contractor-Single/Yearly 30K/75K(1Lakh) 1 2
Transporter(44AE) Declaration with PAN As above - -
194D Insurance Commission 20000 (15000) 10(5 %)
194DA Life insurance policy 100000 2 (1%)
194EE NSS 2500 20 (10%) NA
194G Commission /Lottery 1000(15000) 10(5%)
194H Commission / Brokerage 5000 (15000) 10(5%)
194I Rent Land and Building F&F 180000 10
194I Rent-Plant/Machinery/equipment 180000 2
194IA Immovable property 50 Lakh 1
194J Professional Fees 30000 10
194LA Immovable Property 2 Lakh (2.5 Lakh) 10
Entries in Red color are applicable wef 01.06.2016
3. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
TDS RATE CHART FY 2016-17 AY 2017-18
Nature of Payment Made To Indivi/ HUF Other
Section - Description Cut off
(Rs.)
Rate (%)
192 - Salaries - Avg rates NA
192A-Premature withdrawal from EPF 30000 (50000) 10 NA
193 - Interest on securities 10000 10
194 - Dividends 2500 10
194A - Interest Banks 10000 10
194A - Interest other 5000 10
194B - Winning from Lotteries 10000 30
194BB - Winnings from Horse Race 5000 (10000) 30
194C- Contractor - Single Transaction 30000 1 2
194C- Contractor-During the F.Y. 75000/ 1 Lakh 1 2
194C- Transporter (44AE) declaration with PAN - - -
194D - Insurance Commission 20000 (15000) 10 (5%)
194DA Life insurance Policy 100000 2 (1%) NA
194E -Non-Resident Sportsmen or Sports
Association
- 20
194EE - NSS 2500 20 (10%) NA
194F - Repurchase Units by MFs - 20
194G - Commission - Lottery 1000(15000) 10 (5%)
194H - Commission / Brokerage 5000 (15000) 10 (5%)
194I - Rent Land and Building - F&F 180000 10
194I Rent Plant/Machinery/equipment 2
194IA -Transfer of certain immovable property
other than agriculture land
50 Lakh 1
194J - Professional Fees 30000 10
194LA - Immovable Property 2Lakh (2.5
Lakh)
10
Entries in Red color are applicable wef 01.06.2016
4. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
TDS RATE CHART FY 2016-17 AY 2017-18
Nature of Payment Made To Indivi/ HUF Other
Section – Description Cut off
(Rs.)
Rate (%)
194LB - Income by way of interest from
infrastructure debt fund (non- resident)
- 5
194LB - Income by way of interest from
infrastructure debt fund (non- resident)
- 5
Sec 194 LC - Income by way of interest by
an Indian specified company to a non-resident /
foreign company on foreign currency approved
loan / long-term infrastructure bonds from outside
India (applicable from July 1, 2012)
- 5
194LD - Interest on certain bonds and govt.
Securities(from 01-06-2013)
- 5
196B - Income from units - 10
196C-Income from foreign currency bonds or
GDR (including long-term capital gains on transfer
of such bonds) (not being dividend)
- 10
196D - Income of FIIs from securities - 20
5. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
Notes to TDS RATE CHART FY 2016-17 AY 2017-18:
1. No TDS on service Tax: As per circular 01/2014 dated 13.01.2014 TDS is not applicable
on service tax part if service tax is shown separately.
2. TDS at higher rate i.e., 20% has to be deducted if the deductee does not provide PAN to
the deductor.(read detail u/s 206AA)
3. TDS on Good Transport wef 01.06.2015: TDS shall be applicable on payment to
transporter wef 01.06.2015 .However tds exemption will be available only to those
transporters who own ten or less goods carriages at any time during the previous year.
Such a transporter would also need to furnish a declaration to that effect to the payer
along with the PAN.
4. Surcharge on TDS on salary is applicable if taxable salary is > 1 crore @ 15 %
5. Surcharge on tax other than salary is not deductible /collectible at source in case
of resident individual/ HUF /Firm/ AOP / BOI/Domestic Company in respect of
payment of income other than salary.
6. Surcharge on TDS is applicable on payment made to non-resident other than company
,if payment is in excess of one crore.(15 %) (See chart below for details )
7. TDS is deductible on full amount if threshold limit is crossed during the year including
the amount paid earlier during the year along with interest, if applicable.
8. No Cess on payment made to resident: Education Cess is not applicable in case of
resident Individual /HUF/ Firm/ AOP/ BOI/ Domestic Company in respect of
payment of income other than salary. Education Cess @ 2% plus secondary & Higher
Education Cess @ 1% is deductible at source in case of non-residents and foreign
company.
9. Section 206AA in the Act makes furnishing of PAN by the employee compulsory in case
of receipt of any sum or income or amount, on which tax is deductible. If employee
(deductee) fails to furnish his/her PAN to the deductor , the deductor has been made
responsible to make TDS at higher of the following rates:
i) at the rate specified in the relevant provision of this Act; or
ii) at the rate or rates in force; or
iii) at the rate of twenty per cent. The deductor has to determine the tax amount
in all the three conditions and apply the higher rate of TDS.
However, where the income of the employee computed for TDS u/s 192 is below
taxable limit, no tax will be deducted. Education cess @ 2% and Secondary and
Higher Education Cess @ 1% is not to be deducted, in case the tax is deducted at
20% u/s 206AA of the Act.
10. TDS by Individual and HUF (Non Audit) case not deductible :An Individual or a
Hindu Undivided Family whose total sales, gross receipts or turnover from business or
profession carried on by him does not exceeds the monetary limits (Rs.100,00,000 in case
of business & Rs.50,00,000 in case of profession) under Clause (a) or (b) of Sec.44AB
during the immediately preceding financial year shall not be liable to deduct tax
u/s.194A,194C, 194H, 194I & 194J.So no tax is deductible by HUF/Individual in first
year of operations of business even sales/receipt is more than 100/50 Lakh.
6. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
Section 192
Nature of Payment Salary
Deductor Any person (employer)
Deductee Any person (employee) individual
TDS rate As per Slab rate applicable to individual
Threshold Limit If Tax payable is nil on Salary Income
Time of deduction At the time of Payment
Other points Negative Income of House property may be Considered for TDS
calculation
192A
Nature of Payment Premature withdrawal from EPF
Deductor EPFO
Deductee Resident
TDS rate 10%
Threshold Limit 30000 (50000 wef 01.06.2016)
Time of deduction At the time of Payment
Other points TDS is applicable only if withdrawn before 5 year of contribution
Section 193
Nature of Payment Interest on securities
Deductor any person
Deductee Resident
TDS rate 10%
Threshold Limit Govt securities -10000 Debenture-5000
Time of deduction credit or payment whichever is earlier
Other points
Section 194
Nature of Payment Deemed dividend
Deductor Indian company /company making payment in India
Deductee Resident
TDS rate 10%
Threshold Limit 2500 to Individuals paid a/c payee cheque
Time of deduction Distribution or payment whichever is earlier
Other points No tds on exempted dividend u/s 10(34)
7. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
Section 194A
Nature of Payment Interest other than securities
Deductor (1)Any person other than Individual /HUF (2) Individual Huf having
sales turnover /receipts exceeding the limit provided under section
44AB in immediately preceding year
Deductee Resident
TDS rate 10%
Threshold Limit 10000 from banks 5000 from others
Time of deduction credit or payment whichever is earlier
Other points Adjustment in deduction increase/decrease can be made same as
under section 192(salary)
Section 194B
Nature of Payment winning from lottery/crossword puzzle etc
Deductor any person
Deductee any person
TDS rate 30%
Threshold Limit 10000
Time of deduction At the time of Payment
Other points Tax is deductible even for prize in Kind
Section 194BB
Nature of Payment Winning of Horse race
Deductor any person
Deductee any person
TDS rate 30%
Threshold Limit 5000(10000 form 01.06.2016)
Time of deduction At the time of Payment
Other points
Section 194C
Nature of Payment TDS from payment to contractor sub contractor
Deductor As per details
Deductee Resident
TDS rate if payee is individual/huf:1% other :2%
Threshold Limit Single :30000 Total f.Y=75000(100000 wef 01.06.2016)
Time of deduction credit or payment whichever is earlier
Other points Material value excluded if shown in bill separately
8. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
194D
Nature of Payment Insurance Commission
Deductor any person
Deductee Resident
TDS rate 10%(5% wef 01.06.2016)
Threshold Limit 20000 (15000 from 01.06.2016)
Time of deduction credit or payment whichever is earlier
Other points
Section 194DA
Nature of Payment Payment of Life insurance not exempted u/s 10(10D)
Deductor any person
Deductee Resident
TDS rate 2%(1% wef 01.06.2016)
Threshold Limit 100000
Time of deduction At the time of Payment
Other points No deduction on payment on death of deductee
Section 194EE
Nature of Payment payment of National saving scheme(deduction claimed 80CCA)
Deductor any person
Deductee Individual or HUF
TDS rate 20%(10% wef 01.06.2016)
Threshold Limit Rs 2500
Time of deduction At the time of Payment
Other points No deduction on payment to heirs
194F
Nature of Payment Units of Mutual Funds/UTI(deduction claimed 80CCB)
Deductor any person
Deductee Individual or HUF
TDS rate 20%
Threshold Limit 2500
Time of deduction At the time of Payment
Other points no deduction on payment to heirs
Section 194H
Nature of Payment Commission / Brokerage
Deductor any person
Deductee Resident
TDS rate 10% (5 % wef 01.06.2016)
Threshold Limit 5000 (15000 wef 01.06.2016)
Time of deduction credit or payment whichever is earlier
Other points
9. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
Section 194G
Nature of Payment Commission on Lottery
Deductor any person
Deductee Resident
TDS rate 10% (5% wef 01.06.2016)
Threshold Limit 1000(15000 wef 01.06.2016)
Time of deduction credit or payment whichever is earlier
Other points
section 194I
Nature of Payment Payment of Rent
Deductor Any person other than HUF/Individual
HUF-Individual :sales /gross receipt exceeds one crore/50 lakhs
Deductee Resident
TDS rate Plant and Machinery/equipment :2% Land /building/furniture -10%
Threshold Limit 180000
Time of deduction credit or payment whichever is earlier
Other points TDS is deductible even if deductor is not owner
Section 194IA (effective from 01.06.2013)
Nature of Payment Payment of immovable property
Deductor Any person other than HUF/Individual
HUF-Individual :sales /gross receipt exceeds one crore/50 lakhs
Deductor any person
Deductee Resident
TDS rate 10%
Threshold Limit sale consideration up to 50 lakh
Time of deduction At the time of Payment
Other points Agriculture land not covered/TAN is not required to be obtained
Section 194J
Nature of Payment Fees for professional services /Technical services/ royalty
/remuneration or fees or commission payable to director (not
covered under 192)
Deductor Any person other than HUF/Individual
HUF-Individual :sales /gross receipt exceeds one crore/50 lakhs
Deductee Resident
TDS rate 10%
Threshold Limit 30000(no Limit for Payment to director)
Time of deduction credit or payment whichever is earlier
Other points No tds on profession services for personal purpose
10. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
5.Surcharge /Cess applicable on TDS/TCS
1. In cases in which tax has to be deducted under sections 193, 194, 194A, 194B,194BB,
194D, 194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, at the rates in force, the
deductions shall be made at the rates specified in Part II of the First Schedule and shall
be increased by a surcharge, for purposes of the Union, calculated in cases
wherever prescribed, in the manner provided therein.
2. In cases in which tax has to be deducted under sections 192A, 194C, 194DA,194E, 194EE,
194F, 194G, 194H, 194-I, 194-IA, 194J, 194LA, 194LB, 194LBA, 194LBB,194LBC, 194LC,
194LD, 196B, 196C and 196D of the Income-tax Act and in case of TCS(tax collected at
source), the deductions/collection shall be made at the rates specified in those sections
and shall be increased by a surcharge, for purposes of the Union,—
o (a) in the case of every individual or Hindu undivided family or association of
persons or body of individuals, whether incorporated or not, or every artificial
juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the
Income-tax Act, being a non-resident, calculated at the rate of fifteen per cent.
of such tax, where the income or the aggregate of such incomes paid or likely to
be paid and subject to the deduction exceeds one crore rupees;
o (b) in the case of every co-operative society or firm, being a non-resident,
calculated at the rate of twelve per cent. of such tax, where the income or the
aggregate of such incomes paid or likely to be paid and subject to the
deduction exceeds one crore rupees;
o (c) in the case of every company, other than a domestic company, calculated,—
(i) at the rate of two per cent. of such tax, where the income or the
aggregate of such incomes paid or likely to be paid and subject to the
deduction exceeds one crore rupees but does not exceed ten crore
rupees;
(ii) at the rate of five per cent. of such tax, where the income or the
aggregate of such incomes paid or likely to be paid and subject to the
deduction exceeds ten crore rupees.
Surcharge /Cess applicable on TDS/TCS
Amount in Rs Payment Surcharge Cess
Resident
Individual Salary (up to 1 crore) No Yes (3%)
Individual Salary (> I crore) Yes (15%) Yes (3%)
Non- corporate Any No No
Corporate Any No No
Non-Resident
Individual Salary (up to 1 crore) No Yes (3%)
Individual or HUF or
AOP or BOI or every
artificial juridical person
Any Payments=< 1 Crore No Yes (3%)
Any Payments> 1 Crore Yes (15%) Yes (3%)
cooperative society-Firm Any payment > 10 Crore Yes (12%) Yes (3%)
Non Domestic Company Any payment
(> 1 Crore to 10 crore)
Yes (2%) Yes (3%)
Any payment > 10 Crore Yes (5%) Yes (3%)
11. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
6. TCS (Tax Collection at Source Rates Fy 2016-17)
TCS is collectible on Scrap Tendu Leaves, Timber obtained under a forest lease or other
mode, Any other forest produce not being a timber or tendu leave ,Alcoholic Liquor for
human consumption , Parking Lot, toll plaza, mining and quarrying Minerals, being
coal or lignite or iron ore (applicable from July 1,2012) Bullion if consideration
(excluding any coin / article weighing 10 grams or less) exceeds Rs. 2 Lakhs or
jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received in cash)
(applicable from July 1, 2012) Sale of motor vehicle of the value exceeding Rs. 10
Lacs;(wef 01.06.2016) Sale in cash of any goods (other than bullion and jewellery) or
providing of any services (other than payments on which TDS is made) exceeding Rs. 2
Lacs (wef 01.06.2016).
TCS rate chart is given below for your ready reference.
TCS RATES FOR FINANCIAL YEAR 2016-17
Nature of Payment TCS Rate %
Scrap 1.00
Tendu Leaves 5.00
Timber obtained under a forest lease or other mode 2.50
Any other forest produce not being a timber or tendu leave 2.50
Alcoholic Liquor for human consumption 1.00
Parking Lot, toll plaza, mining and quarrying 2.00
Minerals, being coal or lignite or iron ore (applicable from July
1,2012)
1.00
Bullion if consideration (excluding any coin / article weighting
10 grams or less) exceeds Rs. 2 Lakhs or jewellery if
consideration exceeds Rs. 5 Lakhs (and any amount is received
in cash) (applicable from July 1, 2012)
1.00
Sale of motor vehicle of the value exceeding Rs. 10 Lacs;(wef
01.06.2016)
1.00
Sale in cash of any goods (other than bullion and jewellery) or
providing of any services (other than payments on which TDS is
made) exceeding Rs. 2 Lacs (wef 01.06.2016)
1.00
12. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
7. Due date to Deposit TDS and TCS & Mode FY 2016-17
To Know the full concept of Due date to deposit TDS ,we must have to read it in two Parts
1. When Tax is to be deducted?
2. When Tax is to be collected?
3. When tax deducted at source (TDS) is to be deposited (TDS due date of deposit)?
When tax is to be deducted?
1. At the time of credit or payment, whichever is earlier
o 193- Interest on securities
o 194A- Interest Other than “Interest on securities”
o 194C- Payment to contractors / sub contractors
o 194D – Insurance commission
o 194H – Commission or Brokerage
o 194G- Commission on sale of lottery tickets
o 194I- Rent
o 194J- Professional or technical fees
2. Before making payment or distribution
o 194- Dividend
3. At the time of payment
o 192- Salaries
o 194B- Winning from lotteries / crossword puzzles
o 194BB Winnings from horse races
o 194EE – Payment from National Saving Scheme
o 194F Payment for repurchase of units by UTI / mutual funds
o 194 -IA : payment of transfer of immovable property >50 Lakh
o 194LA: Payment of compensation on acquisition of certain immovable property
When Tax is to be collected
1. At the time of Debit of Account or Receipt ,whichever is earlier
o Scrap
o Tendu Leaves
o Timber obtained under a forest lease or other mode
o Any other forest produce not being a timber or tendu leave
o Alcoholic Liquor for human consumption
o Parking Lot, toll plaza, mining and quarrying Minerals, being coal or lignite or
iron ore (applicable from July 1,2012)
2. At the time of receipt/collection
o Bullion (as per rule above)
o Jewellery (as per rule above)
o Sale of motor vehicle > 10 lakh
o Sale in cash of any goods > 2 Lakh
o Providing of any services against cash payment >2 Lakh
13. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
When date of deduction/Collection is decided then according to point of
deduction/collection then due date to deposit is to be decided as under.
Due Date to Deposit TDS /TCS
Tax to be deducted by Govt Office
1 Tax deposited without challan Same day
2 Tax deposited with challan 7th of next month
Tax deducted by Non-govt deductors
1 Tax deductible in March 30th April of next F.Y
2 other months & tax on perquisites opted to be deposited
by employer
7th of next month
TDS on transfer of Immovable property 194IA
1 Tax deductible in a particular Month (up to 31.05.2016) 7th of next month
2 Tax deductible in a particular Month ( wef 01.06.2016) 30th of next month
Tax Collected at Source (TCS)
1 Tax collectable in a particular Month 7th of next month
Challan to deposit TDS and TCS & mode of deposit
1. For all sections under TDS and TCS one challan is to be deposited ie ITNS-281 and to
deposit TDS/TCS -TAN(tax deduction & collection account number is to be obtained
and used.
2. Deductor can adjust excess tds deposited in one section /assessment year with another
section /assessment year so no need to deposit section wise challan.
3. However for TDS collected under section 194IA (TDS on immovable property over 50
Lakh) tax is to be deposited on challan cum return 26QB.Further to deposit this challan
TAN number is not required though deductor will FILL his PAN
4. TAX must be deposited through online mode only or through designated bank
branches.
Refund of Excess TDS deposited:
As pointed out above in point number 2, you may adjust excess TDS in other section
/assessment year/quarter. However if you want refund then you may apply on form 26B
online for excess TDS.
14. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
“Time and mode of payment to Government account of tax deducted at source or tax paid
under sub section (1A) of section 192. Rule: 30.
(1) All sums deducted in accordance with the provisions of Chapter XVII‐B by an office of the
Government shall be paid to the credit of the Central Government ‐
(a) on the same day where the tax is paid without production of an income‐tax challan;
and
(b) on or before seven days from the end of the month in which the deduction is made or
income‐tax is due under sub‐section (1A) of section 192, where tax is paid accompanied
by an income‐tax challan.
Tax to be deducted/collected by Govt Office
1 Tax deposited without challan Same day
2 Tax deposited with challan 7th of next month
3 Tax on perquisites opt to be deposited by the
employer
7th of next month
(2) All sums deducted in accordance with the provisions of Chapter XVII‐B by deductors other
than an office of the Government shall be paid to the credit of the Central Government ‐
(a) on or before 30th day of April where the income or amount is credited or paid in the
month of March; and
(b) in any other case, on or before seven days from the end of the month in which‐ the
deduction is made; or income‐tax is due under sub‐section (1A) of section 192.
Tax deducted/collected by other
1 tax deductible in March 30th April of next year
2 other months & tax on perquisites opted to
be deposited by employer
7th of next month
(2A) Notwithstanding anything contained in sub‐rule (2) ,any sum deducted under section 194-
IA shall be paid to the credit of the Central Government within a period of seven days 30 days
(wef 01.06.2016) from the end of the month in which the deduction is made and shall be
accompanied by a challan-cum-statement in Form No. 26QB
(3) Notwithstanding anything contained in sub‐rule (2), in special cases, the Assessing Officer
may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax
deducted under section 192 or section 194A or section 194D or section 194H for the quarters of
the financial year specified to in column (2) of the Table below by the date referred to in column
(3) of the said Table:‐
SrNo Quarter ended On Date of payment
1 30th June 7th July
2 30the September 7th October
3 31st December 7th January
4 31st March 30th April
15. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
8.Person required to file E TDS Return & Duties of Deductor
NOTIFICATION No. 238/2007, dated 30-8-2007.Now following person are liable to file
etds/etcs return.
1. All Government department/office or
2. All companies. or
3. All person required to get his accounts audited under section 44AB in the
immediately preceding financial year; or
4. The number of deductees’ records in a quarterly statement for any quarter of the
immediately preceding financial year is equal to or more than 20.
DUTIES OF TAX DEDUCTOR/COLLECTOR
1. To apply for Tax Deduction Account Number (TAN) in form 49B, in duplicate at
the designated TIN facilitation centers of NSDL(please see
www.incometaxindia.gov.in), within one month from the end of the month in
which tax was deducted. However for tax deduction u/s 194IA (tds on transfer
of immovable property) the deductor may use PAN instead of TAN
2. If a deductor has many offices then deductor may take one TAN for all branches
or take separate TAN for each TAN. If separate TAN is taken then deductor can
check TDS compliance report of all TAN at TDSCPC website
3. To quote TAN (10 digit reformatted TAN) in all TDS/TCS challans, certificates,
statements and other correspondence.
4. To deduct/collect tax at the prescribed rates at the time of every credit or
payment, whichever is earlier, in respect of all liable transactions.
5. To remit the tax deducted/collected within the prescribed due dates by using
challan no. ITNS 281 by quoting the TAN and relevant section of the Income-tax
Act.
6. To issue TDS/TCS certificate, complete in all respects, within the prescribed time
in Form No.16(TDS on salaries), 16A(other TDS) 27D( TCS).
7. To file TDS/TCS quarterly statements within the due date and revise the same
,wherever necessary.
8. To mention PAN of all deductees in the TDS/TCS quarterly statements.
16. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
TRACES online portal for deductors and deductees :
TRACES is a web-based application of the Income Tax Department that provides an
interface to all stakeholders associated with TDS administration. It enables viewing of
challan status, downloading of Consolidated File, Justification Report and Form 16 /
16A as well as viewing of annual tax credit statements (Form 26AS). The deductor has
to register at TRACES website to avail facility available at the website
Facility available at Traces for deductors
1. Download Consolidated File /
2. Download Form 16 / 16A / 16B / 27D.
3. Online correction of TDS returns
4. Refund of Excess TDS
5. Justification report: After filing of the return, Department shall process the
return and issue intimation of return processed without default or with defaults.
The defaults are mainly on account of deduction of tax at less rate , late filing of
return ,interest due to late deposit of Tax ,mismatching overbooking of challan ,
incorrect pan details etc. In intimation only summary of default is sent to check
the details deductor is supposed to download Justification report from TDSCPC
website.
17. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
9. Due date TDS-TCS return 24Q, 26Q ,27Q,27EQ and Form 16 , Form 16A for
Financial year 2016-17 for Govt as well as non Govt deductor (notification 30/2012 dt
29/04/2016)
Quarterly return Form
Deductor is required to file TDS/TCS return quarterly, however nil return is not
mandatory. These returns may be filed at any TIN-FC by paying a small fee.
However you may upload original return directly at e filing site free.
1. 24Q : For TDS deducted from Salary Income
2. 26Q : For TDS deducted from all other section except salary & 194IA from
resident
3. 27Q : For TDS deducted from Non-resident except salary
4. 27EQ : For Tax collected at source
5. 26QB : For section 194IA separate return is not required ,challan cum return is to
be filled on form 26QB (Tax to be deposited within 30 days(wef
01.06.2016)(earlier it was 7 days) from the end of the month in which tax is to be
deducted )
Due date TDS Return 24Q, 26Q ,27Q TCS Return 27EQ
Form 16 Form 16A for Financial year 2016-17 for Govt as well
as non Govt deductor (notification 30/2012 dt 29/04/2016)
Sl.
No.
QTR
ENDING
RETURN TDS-TCS Certificate
TDS TCS
FORM
16A
FORM
16
FORM
27D
1 30th June 31st
July
15th
July
15th
Aug
31stMay
30th
July
2 30th Sep 31st Oct 15th
Oct
15th
Nov
30th
Oct
3 31st Dec 31st Jan 15th
Jan
15th
Feb
30th Jan
4 31st Mar 31st
May
15th
May
15th
June
30th
May
18. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
Nil TDS return is not mandatory
As per income tax rules/act Nil tds return is not mandatory, however to facilitate the
deductors and to update data Govt has provided a facility on Traces website for
declaring NIL tds return.
Correction statement of E TDS return
You may file correction return any number of times, No time limit has been defined yet.
This return can be filed with TIN-FC .To file the revised TDS return you have to
download consolidated FVU file from TDSCPS website The correction return filing
facility has not been provided at Income tax India e filing site but we expect that soon it
will be made available. However you may correct challan details/tag replace
challan/allocation of interest and fees online/move deductee rows from unmatched
challan without digital signature at www.tdscpc.gov.in and pan details with digital
signature. If short payment of TDS is not settled by Deductor then he cannot download
form 16A/16 of that quarter/year.
TDS Certificate
1. Form 16 : For tds deducted from salary
2. Form 16A : For other Tax deductions except salary & 194IA
3. Form 16B : TDS from section 194IA (to be issued within 45 days wef
01.06.2016)(earlier it was 22 days) from the end of the month in which tax is to be
deducted )
4. All above form must be downloaded from TDSCPC (TRACES) website .However
in case of Form 16 only PART-A is to be downloaded from TRACES website.
Earlier this was mandatory for only companies ,Banks and co-operative
societies engaged in Banking services with effect from 01.04.2011
through circular number 3/2011.
5. Form 16A downloaded from TDSCPC can be signed manually or can be
authenticated through digital signature only.
Read more from links given below
1. Procedure How to register at TRACES (www.tdscpc.gov.in) and
2. How to download Form 16A form TRACES (www.tdscpc.gov.in)
3. HOW TO DOWNLOAD FORM 16 FROM TDSCPC WEBSITE
4. How to download Form 16B from TDSCPC website
19. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
10. Interest on Late deposit of TDS/TCS & Penalty & Prosecution & other
consequences on Non deposit of TDS/TCS
As per income-tax act/rules, interest on late deposit of TDS is payable under the
following two circumstances
1. Tax is not deducted , when it was deductible
2. Tax once deducted, is not paid on or before due date
INTEREST ON LATE DEDUCTION/DEPOSIT OF TDS-TCS
Section Nature of default Interest Period
Interest
under
section
201(1A)
Non-deduction of tax at source,
either in whole or part
1.00%
per
month
From the date on which tax
was deductible to the date
on which tax is actually
deducted
After deduction, nonpayment
of tax, either in whole or part.
Non- payment of tax u/s 192(1A)
1.50%
Per
Month
From the date on which tax
was deducted to the date on
which tax is actually paid
Simple Interest shall be calculated and part of month will be treated full Month
Interest on late Deposit of TDS/TCS :
Tax deducted late: Interest at the rates in force 1% per month from the
date on which tax was deductible /collectible to the date of payment to
Government Account is chargeable.
Tax deducted but not Deposited: The Finance Act 2010 amended interest
rate wef 01.07.2010 and created a separate class of default in respect of tax
deducted but not paid to levy interest at a higher rate of 1.5 per cent per
month, as against 1 per cent p.m., applicable in case the tax is deducted
late after the due date. The rationale behind this amendment is that the tax
once deducted belongs to the government and the person withholding the
same needs to be penalized by charging higher rate of interest.
Interest for full month to be charged for month or part thereof.
Penalty: equal to the tax that was failed to be deducted/collected or remitted
Prosecution :failure to remit the tax deducted/collected, rigorous imprisonment
ranging from 3 months to 7 years and fine may be levied.(section 276B and
276BB)
Disallowance of Expenses : If TDS is not deposited with in due date of filing of
Income tax return then 30 % of expenses on which TDS is deductible will be
disallowed as expenses in current year under section 40A(ia)
20. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
11 : Late Fees -Penalty on Late filing of TDS return
1. Failure to apply for TAN in time or Failure to quote allotted TAN or Wrong quoting of
TAN : Penalty of Rs.10,000 is leviable u/s.272BB
2. Late Filing of TDS-TCS statement: Deductor will be liable to pay by way of fee of Rs 200 per
day till the failure to file TDS statement continues. However, the total fee cannot exceed the
amount of TDS deductible from which statement was required to be filed.(section 234E)
.Further as per section 234E ,Late fees is required to be paid before the filing of TDS/TCS return.
Read How to avoid Late fees u/s 234E (read more post related to section 234E)
3. Failure to File TDS return on Time and filling of incorrect statement: New Section for
Penalty for non submission of ETDS /ETDS return (section 271H)(applicable from 01.07.2012)
Failure to deliver statement within time prescribed u/s 200 (3) or to the proviso to sub-section
(3) of section 206C may liable to penalty which shall not be less than Rs. 10,000/- but which may
extend to Rs. 1,00,000/-. No penalty if payment of tax deducted or collected along with fee or
interest and delivering the statement aforesaid before the expiry of 1 year from the time
prescribed for delivering the such statement. However No penalty shall be imposed u/s 271H if
the person proves that there was reasonable cause for the failure.(section 273B)
4. Penalty on Late issue of TDS certificate form 16/Form 16A/form 27D/Form 16B :
If TDS certificate is not issued within due date as prescribed then penalty @ 200 per day may be
imposed till the default continues for each default. However, the maximum penalty cannot
exceed the amount of TDS deducted for which TDS certificate was required to be issued.
5. Assessee In default (amendment in section 201)
The Deductor will not to be treated as assessee in Default provided the resident payee has
furnished his return u/s 139 and has taken into account such amount for computing income in
such Return of Income and has paid the Tax Due on the income declared by him in such return
of income and furnishes a certificate to this effect, duly certified by a CA, in the prescribed form.
This form is yet to be notified.
However, the interest for non deduction of tax would be payable from the date on which such
tax was collectible till the date of furnishing of return of income by the resident payee.
21. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
12 .Various Passwords required to Use Traces Website
Functionality Password Example
Password Formats for Tax Deductors
Registration It should contain a minimum of
8 alphanumeric characters with
at least one capital letter.
Password123
Consolidated
File
TAN_Request Number of
request submitted
DELA11111D_23456
Form 16/ 16A TAN in capital letters DELA11111D
Justification
Report
JR_TAN_FormType_Quarter_FY JR_DELA11111D_24Q_Q3_2010-
11
Intimation
through
email
TAN_Date of filing original
statement (in DDMMYYYY
format)
DELA_13102013
Password Formats for Tax Payers
Registration It should contain a minimum of
8 alpha numeric characters with
at least one letter in upper case
Password123
Form 26 AS Date of Birth (in DDMMYYYY
format)
If your date of birth is 01-Feb-
1980, password will be 01021980
Form 16B Date of Birth (in DDMMYYYY
format)
If your date of birth is 01-Feb-
1980, password will be 01021980
22. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
13. Other Point to be noted
1. One Challan Can be deposited for all Sections?
2. How to File Nil TDS return Online
3. How to download Consolidated FVU
4. TDS on Job work(194C) Tds on Job work has been relaxed read new definition
u/s 194C.
5. TDS on Cold Storage (194C clarification)
6. No TDS on service tax on all section (circular -01/2014 dated 13.01.2014)
7. TDS on Rent (various circulars by department on tds on rent )
8. E-payment of TDS mandatory from 01.04.2008
9. E-Payment From Other Banks Account Allowed
10. TDS challan ITNS 281 In excel &
11. How To pay Income Tax/Tds Online FAQ
12. Nil TDS on Transporter and others to be reported in ETDS quarterly returns
13. 1% TDS on transfer of property u/s 194IA wef 01.06.2013
14. TDS on rent section 194-1 brief notes, circular, notification and case laws
15. 42 Important points related to TDS/TCS deduction and etds return filing
23. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
14. CHANGES IN TDS-TCS RATES WEF 01.06.2016
Changes in TDS Threshold limits (Budget-2016) wef 01.06.2016
Section Particulars of payment OLD LIMIT NEW LIMIT
192A Payment of EPF due to an employee 30000 50000
194BB Winnings from Horse Race 5000 10000
194C Payments to Contractor(yearly) 75000 100000
194D (Insurance Commission) 20000 15000
194G Lottery Commission 1000 15000
194H Commission or brokerage 5000 15000
194LA Compensation on immovable property 200000 250000
Changes in TDS rates (Budget-2016) wef 01.06.2016
Section Particulars of payment OLD RATE NEW RATE
194D (Insurance Commission) 10% 5%
194DA Life Insurance Policy 2% 1%
194EE NSS Deposits) 20% 10%
194G Commission on lottery tickets 10% 5%
194H Commission or brokerage 10% 5%
194K Income in respect of Units Proposed to be omitted wef. 1st
June 2016.194L Payment of Compensation on acquisition
of Capital Asset
194LBB Units of Investment Funds
Read details
10% or Rates in
force,
194LBC investment in a securitisation trust Read details 25% & 30 %
Changes in TCS Rates(budget-2016) wef 01.06.2016
206C Sale of motor vehicle >Rs. 10 Lacs -- 1%
206C sale in goods /services in cash >2 Lakh (other
than bullion and jewellery) (other than
payments on which TDS applicable)
-- 1%
24. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
In order to rationalise the rates and base for TDS provisions, the existing threshold limit
for deduction of tax at source and the rates of deduction of tax at source are proposed to
be revised as under.
1. Section 192A (Payment of accumulated balance of PF due to an employee)-
Proposed to increase the threshold limit from Rs. 30,000/- to Rs. 50,000/- for the
purpose of deducting of TDS w.e.f. 1st June 2016.
2. Section 194BB (Winnings from Horse Race)- Proposed to increase threshold limit
from Rs. 5,000/- to Rs 10,000/- for the purpose of deducting of TDS w.e.f. 1st
June 2016.
3. Section 194C (Payments to Contractors) - Proposed to increase the aggregate
threshold limit from Rs. 75,000/- to Rs.1,00,000/- w.e.f. 1st June, 2016.
4. Section 194D (Insurance Commission) Proposed to decrease threshold limit from
Rs. 20000/- to Rs. 15000/- and rate of TDS also decreased from 10% to 5% w.e.f.
1st June 2016
5. Section 194DA (Payment in respect of Life Insurance Policy)- Proposed to
decrease the rate of TDS from 2% to 1%. w.e.f. 1st June 2016.
6. Section 194EE (Payments in respect of NSS Deposits)- Proposed to decrease the
rate of TDS from 20% to 10% w.e.f. 1st June 2016.
7. Section 194G (Commission on sale of lottery tickets)- Proposed to increase
threshold limit from Rs. 1,000/- to Rs. 15,000/- and Rate of TDS is decrease from
10% to 5% w.e.f 1st June 2016.
8. Section 194H (Commission or brokerage) - Proposed to increase threshold limit
from Rs. 5,000/- to Rs. 15,000/- and rate of TDS decreased from 10% to 5% w.e.f
1st June 2016
9. Section 194K (Income in respect of Units) and Section 194L (Payment of
Compensation on acquisition of Capital Asset)- Proposed to be omitted w.e.f. 1st
June 2016.
10. Section 194LA (Payment of compensation on acquisition of certain immovable
property) - Proposed to increase the threshold limit from Rs.2,00,000/- to
Rs.250000/- w.e.f. 1st June, 2016.
11. Section 194LBB (Units of Investment Funds) to deducted TDS – (a) at the rate of
10% where the payee is a resident; (b) at the rates in force, where the payee is a
non-resident (not being a company) or a foreign company w.e.f 1st June 2016
12. Section 194LBC is proposed to be inserted where any income is payable to an
investor, being a resident, in respect of an investment in a securitisation trust
TDS is to be made @: (i) 25% if the payee is an individual or a Hindu undivided
family; (ii) 30% if the payee is any other person.
13. It is proposed to amend section 197 to include section 194LBB, 194LBC in the list
of sections for which a certificate for deduction of tax at lower rate or no
deduction of tax can be obtained w.e.f 1st June 2016
14. It is proposed to amend the provisions of section 197A for making the recipients
of payments referred to in section 194-I (Rent) also eligible for filing self-
25. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
declaration in Form no 15G/15H for non-deduction of tax at source in
accordance with the provisions of section 197A w.e.f 1st June 2016
15. It is proposed to amend section 206AA so as to provide that the said section shall
not apply to a nonresident, not being a company, or to a foreign company, in
respect of- (a) Payment of interest on long term bond referred in section 194 LC;
(b) Any other payment subject to condition as may be prescribed on w.e.f 1st
June 2016.
16. It is proposed to amend the section 206C (TCS) to provide that the seller shall
collect the tax at the rate of 1%: (a) from the purchaser on sale of motor vehicle of
the value exceeding Rs. 10 Lacs; and (b) sale in cash of any goods (other than
bullion and jewellery) or providing of any services (other than payments on
which TDS is made) exceeding Rs. 2 Lacs w.e.f 1st June 2016.
Tax Collection at Source (TCS) on sale of vehicles; goods or services
The existing provision of section 206C of the Act, inter alia, provides that the seller shall
collect tax at source at specified rate from the buyer at the time of sale of specified items
such as alcoholic liquor for human consumption, tendu leaves, scrap, mineral being coal
or lignite or iron ore, bullion etc. in cash exceeding two lakh rupees.
In order to reduce the quantum of cash transaction in sale of any goods and services
and for curbing the flow of unaccounted money in the trading system and to bring high
value transactions within the tax net, it is proposed to amend the aforesaid section to
provide that the seller shall collect the tax at the rate of one per cent from the purchaser
on sale of motor vehicle of the value exceeding ten lakh rupees and sale in cash of any
goods (other than bullion and jewellery), or providing of any services (other than
payments on which tax is deducted at source under Chapter XVII-B) exceeding two
lakh rupees.
It is also proposed to provide that the sub-section (1D) relating to TCS in relation to sale
of any goods (other than bullion and jewellery) or services shall not apply to certain
class of buyers who fulfill such conditions as may be prescribed.
This amendment will take effect from 1st June, 2016
26. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
Exemptions from requirement of furnishing PAN under section 206AA to certain
non-resident.
The existing provision of section 206AA, inter alia, provides that any person who is
entitled to receive any sum or income or amount on which tax is deductible under
Chapter XVIIB of the Act shall furnish his Permanent Account Number to the person
responsible for deducting such tax, failing which tax shall be deducted at the rate
mentioned in the relevant provisions of the Act or at the rate in force or at the rate of
twenty per cent., whichever is higher. The provisions of section 206AA also apply to
non-residents with an exception in respect of payment of interest on long-term bonds as
referred to in section 194LC.
In order to reduce compliance burden, it is proposed to amend the said section 206AA
so as to provide that the provisions of this section shall also not apply to a non-resident,
not being a company, or to a foreign company, in respect of any other payment, other
than interest on bonds, subject to such conditions as may be prescribed.
This amendment will take effect from 1st June, 2016.
Rationalization of tax deduction at source provisions relating to payments by
Category-I and Category-II Alternate Investment Funds to its investors.
The Finance Act, 2015 had inserted a special taxation regime in respect of Category-I
and II Alternative Investment Funds (investment fund) registered with SEBI. The
special taxation regime is intended to ensure tax pass through status in respect of these
investment funds which are collective investment vehicles. The special regime is
contained in sections 10(23FBA), 10 (23FBB), 115UB and 194LBB of the Act. Under this
regime, the income of the investment fund (not being in the nature of business income)
is exempt in the hands of investment fund but income received by the investor from the
investment fund (other than income which is taxed at the level of investment fund) is
taxable in the hands of investor. The taxation in the hands of investors is in the same
manner and in the same proportion as it would have been, had the investor received
such income directly and not through the investment fund. The existing provisions of
section 194LBB provides that in respect of any income credited or paid by the
investment fund to its investor, a tax deduction at source (TDS) shall be made by the
investment fund @ 10% of the income. Under section 197 of the Act, facility for
certificate for deduction of tax at lower rate or no deduction is available in respect of
sections enumerated therein, if the Assessing Officer is satisfied that total income of the
recipient justifies issue of such certificate, section 194LBB is currently not included in
this provision.
It has been represented that the existing TDS regime has created certain difficulties. The
non-resident investor is not able to claim benefit of lower or NIL rate of taxation which
27. TDS –TCS RATE CHART DUE DATES OF TDS INTEREST PENALTY BY WWW.SIMPLETAXINDIA.NET
VERSION -2 UPDATED: 23.05.2016 CHECK FOR UPDATED HERE TDS RATES FY 2016-17
is available to him under the relevant Double Taxation Avoidance Agreement (DTAA),
and deduction of tax @10% is to be undertaken mandatorily even if under DTAA, the
income is not taxable in India. There is no facility for any investor to approach the
Assessing Officer for seeking certificate for TDS at a lower or NIL rate in respect of
deductions made under section 194LBB.
In order to rationalise the TDS regime in respect of payments made by the investment
funds to its investors, it is proposed to amend section 194LBB to provide that the person
responsible for making the payment to the investor shall deduct income-tax under
section 194LBB at the rate of ten per cent where the payee is a resident and at the rates
in force where the payee is a non-resident (not being a company) or a foreign company.
Further, it is proposed to amend section 197 to include section 194LBB in the list of
sections for which a certificate for deduction of tax at lower rate or no deduction of tax
can be obtained. Consequential changes are also proposed to be made to the definition
of "rates in force" so as to include section 194LBB in it.
These amendments will take effect from 1st June, 2016.
[Clause 3, 81 & 83]
Enabling of Filing of Form 15G/15H for rental payments
The provision of sub-section 194 -I of the Act, inter alia, provides for tax deduction at
source (TDS) for payments in the nature of rent beyond a threshold limit. The existing
provisions provide threshold of Rs. 1,80,000 per financial year for deduction of tax
under this section. In spite of providing higher threshold for deduction tax under this
section, there may be cases where the tax payable on recipient's total income, including
rental payments, will be nil. The existing provisions of section 197A of the Income-tax
Act, inter alia provide that tax shall not be deducted, if the recipient of certain payments
on which tax is deductible furnishes to the payer a self- declaration in prescribed Form
No 15G/15H declaring that the tax on his estimated total income of the relevant
previous year would be nil. In order to reduce compliance burden in such cases, it is
proposed to amend the provisions of section 197A for making the recipients of
payments referred to in section 194-I also eligible for filing self-declaration in Form no
15G/15H for non-deduction of tax at source in accordance with the provisions of
section 197A.
This amendment will take effect from 1st June, 2016.