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.

1. TAX DEDUCTED AT SOURCE
(TDS)
R.R.RAMKUMAR
FINANCE & ACCOUNTS

2. Direct tax Indirect tax
Tax directly paid by
Taxpayer on his income
Tax collected by
taxpayer from
customer and paid
to government

3. INCOME TAX DEPARTMENT
•Self Assessment Tax
•Advance TAX
•TDS
•TCS

4. Introduction
The concept of TDS was introduced with an aim to collect tax from the
very source of income.
As per the law, a person (deductor) who is liable to make payment of
specified nature to any other person (deductee) shall deduct tax at
source and remit the same into the account of the Central Government.
The deductee from whose income tax has been deducted at source
would be entitled to get credit of the amount so deducted on the basis of
Form 26AS or TDS certificate issued by the deductor.

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

6. TDS Chart
Section Description Threshold Limit / Conditions TDS Rate
192 Salary Basic exemption limit of
employee
Normal tax slab rates
192A Premature withdrawal from EPF Upto Rs.50000 - No TDS 10%
193 Interest on Securities Debentures- 5,000
8% Savings (Taxable) Bonds
2003 or 7.75% Savings
(Taxable) Bonds 2018-
10,000
Other Securities- No Limit
10%
194 Dividends No TDS Upto Rs.5000 10%
194A Interest other than 'Interest on securities' No TDS for Others upto-
40,000
No TDS for Senior Citizens
upto- 50,000
10%
194B Winning from lottery or crossword puzzle Upto Rs.10000 30%
194BB Winning from horse race Upto Rs.10000 30%
194C Payments to contractors and sub-contractors Single transaction- 30,000
Aggregate transactions-
1,00,000
1% -Individual/HUF
2%- Other than
Individual
194D Insurance commission Upto Rs.15000 - No TDS 5% Other than
Company and
10%-Domestic
Company

7. Section Description Threshold Limit / Conditions TDS Rate
194E Payments to non-resident sportsmen or
sports associations
No Limit 20%
194EE Payments in respect of deposits under
National Savings Scheme
Upto Rs.2500- No TDS 10%
194F Payments on account of repurchase of units
by Mutual Fund or Unit Trust of India
No Limit 20%
194G Commission, price, etc. on sale of lottery Upto Rs.15,000 5%
194H Commission or brokerage Upto Rs.15,000 5%
194I Rent
194I(a) Payment of Rent for the use of any
machinery or plant or equipment
Upto Rs.2,40,000/- 2%
194I(b) Payment of Rent for the use of land or
building or land appurtenant or furniture or
Upto Rs.2,40,000/- 10%
194J(a) Fees for technical services Upto Rs.30,000/- 2%
194J(b) Fees for professional services or royalty etc Upto Rs.30,000/- 10%

8. Section Description Threshold Limit / Conditions TDS Rate
194K Income payable to a resident assessee in
respect of units of a specified mutual fund or
of the units of the Unit Trust of India
No limit 10%
194LA Payment of compensation on acquisition of
certain immovable property
Upto Rs.2,50,000/- 10%
194LB Income by way of Interest from No limit 5%
194LC Income by way of interest from specified
company payable to a nonresident
No limit 4%
194LBA Certain income from units of a business trust No limit
194LBB Income in respect of units of investment No limit 10% / 40% (FC)
194LBC Income in respect of investment in No limit
194M Certain payments by Individual/HUF not
liable to deduct TDS under Section 194C,
Rs. 50,00,000 5%
194N Payments of certain amounts in cash Upto Rs.1 Crore 2%
194NF Payments of certain amounts in cash to non-
filers
(Cash withdrawal in case person not filing
ITR for last three years and the original ITR
filing due date expired)
20 Lakhs to 1 Crore
Above 1 Crore
2%
5%

9. Section Description ThresholdLimit/Conditions TDSRate
194O Paymentof certainsumsby e-commerce
operatortoe-commerce participant
uptoRs.5,00,000- NoTDS 1%
194P Deductionof tax incase of specifiedsenior
citizen
Basicexemptionlimit Normal SlabRates
194Q Deductionof tax atsource onpaymentof
certainsumforpurchase of
goods
uptoRs.50,00,000- NoTDS 0.10%
194R Benefits&Perquisites UptoRs.20,000- NoTDS 10%
195 Othersumspayable toanon-resident NoLimit Income tax rate Vs
DTAA

10. TDS Applicable in Normal course of KAI's Business Model
Section Description Threshold Limit / Conditions TDS Rate
192 Salary Basic exemption limit of
employee
Normal tax slab rates
192A Premature withdrawal from EPF Upto Rs.50000 - No TDS 10%
194C Payments to contractors and sub-contractors Single transaction- 30,000
Aggregate transactions-
1,00,000
1% -Individual/HUF
2%- Other than
Individual
194H Commission or brokerage Upto Rs.15,000 5%
194I Rent
194I(a) Payment of Rent for the use of any
machinery or plant or equipment
Upto Rs.2,40,000/- 2%
194I(b) Payment of Rent for the use of land or
building or land appurtenant or furniture or
fittings
Upto Rs.2,40,000/- 10%
194J(a) Fees for technical services Upto Rs.30,000 /- 2%
194J(b) Fees for professional services or royalty etc Upto Rs.30,000 /- 10%
194Q Deduction of tax at source on payment of
certain sum for purchase of
goods
upto Rs.50,00,000- No TDS 0.10%
194R Benefits & Perquisites Upto Rs.20,000 - No TDS 10%

11. “Professional services ” means services rendered by a person in the course of
carrying on legal, medical, engineering or architectural profession or the
profession of accountancy or technical consultancy or interior decoration or
advertising or such other profession as is notified by the Board for the purposes
of section 44AA or of this section.
“Fees for technical services” means any consideration (including any lump sum
consideration) for the rendering of any managerial, technical or consultancy
services (including the provision of services of technical or other personnel) but
does not include consideration for any construction, assembly, mining or like
project undertaken by the recipient or consideration which would be income of
the recipient chargeable under the head “Salaries”.
Difference between Professional & Technical services

12. Certificate of No or Lower TDS
You can request the assessing officer (AO) via Form no. 13 and get a certificate that
authorizes the payer to make NIL tax deduction or deduction at a lower rate. To get the
benefits of such a facility, it is mandatory to quote your Permanent Account Number (PAN)
as per Section 206AA(4).
Section 206AB- Tax Deduction at Source for Non-filing of Income
tax return
The tax is required to be deducted/collected at source at rates higher than prescribed in the Act, if
the transaction is incurred with the person who satisfies the following conditions:
 The person not file the income tax return for the financial year (before Budget 2022, two FY)
immediately preceding the FY in which tax is required to be deducted,
 where the income tax return (not belated return) filing due date is expired and
 The total amount of deduction and collection of tax (TDS and TCS) is Rs.50,000 or more in each
of these two previous years.

13. What is the TDS rate on salary?
TDS rates on salary are the same as the tax slab rates applicable to individuals.
Old Regime
Net Income Range Rate of Income tax
Up to Rs. 2,50,000 NIL
Rs. 2,50,001to Rs. 5,00,000 5%
Rs. 5,00,001to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
New Regime- Sec 115BAC
Net Income Range Rate of Income tax
Up to Rs. 2,50,000 NIL
Rs. 2,50,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 7,50,000 10%
Rs. 7,50,001 to Rs. 10,00,000 15%
Rs. 10,00,001 to Rs. 12,50,000 20%
Rs. 12,50,001 to Rs. 15,00,000 25%
Above Rs. 15,00,000 30%

14. TDS on Salary under Section 192
Section 192 of the Income Tax Act, 1961 deals with tax deducted at source (TDS) on salary. Your employer will
deduct TDS from the salary payable to you.
The salary you receive from your employer is categorized in ‘Income’ under the head ‘Salary’ and the employer
will be responsible for deducting
TDS at normal income tax rates applicable to you on your estimated income for the relevant financial year. The
TDS deducted u/s 192 is reflected in Form 16, which is issued by the employer to the employee.
Who can Deduct TDS under Section 192
a. Companies (Private or Public)
b. Individuals
c. HUF
d. Trusts
e. Partnership firms
f. Co-operative societies
All the employers are required to deduct TDS monthly and deposit it to the government within the specific time period.

15. Under Section 192, TDS is deducted at the time of actual payment of salary and not during the accrual of
salary. It means tax will be deducted if your employer pays salary in advance or at the time of salary payment in
arrears.
In case your estimated salary is not more than the basic exemption limit, tax amount will be zero and hence,
TDS will not be deducted.
The basic exemption limit as per the age that does not require TDS to be deducted:
Age Minimum income
Resident in India below 60 years Rs 2.5 lakh
Senior Citizens between 60 years and below 80
years
Rs 3 lakh
Super Senior Citizens above 80 years Rs 5 lakh

16. •NOTE:
•Please note that the tax rates in the New tax regime is the same for all categories of Individuals, i.e Individuals
& HUF upto 60 years of age, Senior citizens above 60 years upto 80 years , and Super senior citizens above 80
years. Hence no increased basic exemption limit benefit will be available to senior and super senior citizens in
the New Tax regime.
•Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax
liability will be nil of such individual in both – New and old/existing tax regimes.
•Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.
•Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.
(increased from 3% since FY 18-19)
•Surcharge applicable as per tax rates below in all categories mentioned above:
• 10% of Income tax if total income > Rs.50 lakh
• 15% of Income tax if total income > Rs.1 crore
• 25% of Income tax if total income > Rs.2 crore
• 37% of Income tax if total income > Rs.5 crore

17. B. Income tax slab rate for Old Tax regime – FY 2022-23 (AY 2023-24)
Income Tax Slab Individuals Below The Age Of 60 Years – Income Tax Slabs
Up to Rs 2.5 lakh NIL
Rs. 2.5 lakh -Rs. 5 lakh 5%
Rs 5.00 lakh – Rs 10 lakh 20%
> Rs 10.00 lakh 30%
Income tax slabs for individual aged below 60 years & HUF
•NOTE:Income tax exemption limit is up to Rs 2,50,000 for Individuals , HUF below 60 years aged and NRIs.
•An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
•Surcharge:
• 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
• 15% of income tax, where the total income exceeds Rs.1 crore.

18. TDS Due Dates of FY 2022-23 for Return Filing
Quarter Period Due Date for filing
Quarter 1 April 2022 to 30 June 2022 31 JULY 2022
Quarter 2 July 2022 to September 2022 31 OCTOBER 2022
Quarter 3 October 2022 to December 2022 31 January 2023
Quarter 4 January 2023 to March 2023 31 May2023

19. Different forms prescribed for TDS Return?
Form Deductor type
Form 24 Q Deductions made in a salaried case
Form 26 Q Deductions made in the non-salaried case
Form 27 Q Deductions made in the case of NRIs
Due dates for different forms and different quarters as well:
Quarter Form 24Q & 26Q Form 27Q
April to June 15 July 15 July
July to September 15 October 15 October
October to December 15 January 15 January
January to March 15 May 15 May

20. What is a TDS Certificate?
TDS Certificates are of two types: Form 16 and Form 16A. Under Section 203 of the Income Tax Act, 1961, a
certificate must be provided to the deductee showing the amount that has been Subtracted/Deducted as tax.
The deductor is liable to provide this form to the deductee.
•For salaried class: In case of salaried employees, employers are required to provide them with Form 16
with a mention of the amount that has been deducted as TDS. Form 16 contains a host of details such as the
computation of tax, the deduction of tax, and the payment of TDS. Employers must issue this form to their
employees before Jun 30 of the following financial year.
•For non-salaried class: The deductor provides the deductee with Form 16A, and it contains all the details
regarding the computation of tax, the deduction of TDS, and payments.