TDS Return Filing
| What is TDS | It is tax deduction at source which is deducted by the Employer and is known as deductor and employee or any other person whose tax is deducted is known as deductee. The amount so deducted is deposited on due dates and Quarterly returns are to be filed. |
| Types of TDS Return | There are following Types of TDS Return 24Q- For Salaried 26Q for all deduction other than salaries such as interest 27 Q - payments other than salary made to Non-Resident Indian (NRI) and foreigners |
| Advantages | TDS deduction is beneficial from government point of view and as per company it is mandatorily required to be complied so that penalties does not arise else company will have to bear noncompliance cost. Following are detailed benefits as per government point of view: • Deducting TDS at source prevents tax evasion. • Tax collection is done duly and in a timely manner. • A large number of people come under ambit of tax. • Collection of TDS is a steady source of revenue for the government. |
| Rates of TDS | It is prescribed in the Income tax Act and annexure is attached below Click Here |
| Due dates of TDS return and amount Deposit | Amount of TDS deducted needs to be deposited up to 7th of the next month Quarterly returns need to be filled. |
| Penalty of Return filling | According to Section234E, if an assesse fails to file his/her TDS Return before the due date, a penalty of Rs 200 per day shall be paid by the assesse until the time the default continues. However, the total penalty should not exceed the TDS amount. |
| Penalty of delayed deposit of tax | 1.5% per month or part of the month |
| Process | Process is as detailed below |
TDS Rates
| SEC | DUE date | % of tds |
|---|---|---|
| 192 Salary | Due date is 07th of next month and 30 april in case of march Or Can be deposited on the same date on which the tax have been deducted |
Slab Rate including loss of house property |
| 192A | 10% | |
| 194A TDS on Ints other than securities | 10% | |
| 194B Winning from lottery crossword puzzles | 30% | |
| 194BB Winning from Horse Races | 30% | |
| 194C TDS on contract | 1% for Individual/HUF 2% for company |
|
| 194D Tax on Insurance commission | 5% | |
| 194DA Tds on maturity proceeds of LIC | 1% | |
| 194E TDS on payment of NR sports person | 20+cess% | |
| 194G TDS on commission on sale of lottery ticket | 5% | |
| 194H TDS on commission and brokerage | 5% | |
| 194I TDS on Rent | Plant and machinery-2% Land /Building Furniture-10% |
|
| 194IA TDS on T/F of immovable property | 1% | |
| 194IB TDS on rent of immovable property | 5% | |
| 194IC TDS payment under Development Agreement | 10% | |
| 194J TDS on professional services | 10% | |
| 194LA TDS on compensation of compulsory Acquisition | 10% | |
| 194LB TDS on infrastructure debt fund | 5% | |
| 195 TDS on any sum payable to NR | DTAA Rate or Rate in force |
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