Gupta Vigg & Co.

CHARTERED ACCOUNTANTS

TDS/TCS PROVISIONS FOR THE FINANCIAL

YEAR 2021-2022 AY 2022-23
 M/s Gupta Vigg & Co.
Chartered Accountants

TDS/TCS PROVISIONS FOR THE FINANCIAL YEAR 2021-2022 AY 2022-23

➢ Every Company/ Firm and Individual HUF is required to deduct TDS if during the previous year the
turnover or gross receipts is more than ₹ 1 crore in case of assessee caring business or ₹ 50 lacs in case
of assessee carrying profession.

➢ The Rates of TDS/TCS are given as under:

RATES OF TDS APPLICABLE FOR FINANCIAL YEAR 2021-22 OR ASSESSMENT YEAR 2022-23

S.N SECTIO SECTION/ NATURE OF THRESHOLD TDS

O. N PAYMENT LIMIT RATE REMARKS
Option to choose between
Slab
1 192 Salary As per Slab new and old tax slab regime
Rates
for salaried employees
TDS provisions u/s 192A will
be applicable when
Premature withdrawal from
withdrawal of accumulated
Employee Provident Fund
balance in Recognized
(Payment of accumulated
2 192A ₹ 50,000/- 10% Provident Fund is to be
balance of provident fund
included in the total income
which is taxable in the
10% in case of Resident and
hands of an employee)
10.40% in case of Non-
Resident
Threshold limit for interest
paid on debentures is ₹
5,000. Threshold limit for
3 193 Interest on securities ₹ 2,500/- 10%
interest on 7.75% GOI
Savings (Taxable) Bonds
2018 is ₹ 10,000.
Dividend other than the
4 194 dividend as referred to in ₹ 5,000/- 10%
Section 115-O
Interest other than interest Senior Citizen ₹
on securities – Banks Time 50000/-
5 194A 10%
deposits, Recurring deposit Others ₹
and Deposit in Co-op Banks 40,000/-

Ludhiana |New Delhi |Lucknow | www.guptavigg.com Page 1

 M/s Gupta Vigg & Co.
Chartered Accountants

Income by way of winnings

from lotteries, crossword
6 194B ₹ 10,000/- 30%
puzzles, card games and
other games of any sort
Income by way of winnings
7 194BB ₹ 10,000/- 30%
from horse races
Single payment :
₹ 30,000/-
1% or
8 194C Payment to Contractors Aggregate
2%
payment: ₹
1,00,000/-
Insurance Commission
9 194D ₹ 15,000/- 5%
received by an Individual
Payment in respect of life
insurance policy, the tax
shall be deducted on the
10 194DA ₹ 1,00,000/- 5%
amount of income
comprised in insurance
pay-out
Payment in respect of
11 194EE deposit under National ₹ 2,500/- 10%
Savings scheme
Commission or brokerage
12 194H received except for ₹ 15,000/- 5%
Insurance Commission
194- Rent for plant and
13 ₹ 2,40,000/- 2%
I(a) machinery
194- Rent for immovable
14 ₹ 2,40,000/- 10%
I(b) property
Transfer of certain
No TDS on sale of
15 194IA immovable property other ₹ 50,00,000/- 1%
agriculture land
than agriculture land
The Threshold Limit is ₹
Payment of Rent by 50,000 per month for the
₹ 50,000/ per
16 194IB Individuals or HUF not 5% Payment of rent by an
month
liable for Tax Audit individual or HUF not liable
to tax audit
Payment of monetary
17 194IC consideration under Joint No Limit 10%
Development Agreements

Ludhiana |New Delhi |Lucknow | www.guptavigg.com Page 2

 M/s Gupta Vigg & Co.
Chartered Accountants

Applicable for call centre

Fees for professional or
18 194J ₹ 30,000/- 2% operations and fees for
technical services
technical services
All other professional fees
Fees for professional or other than call centre
19 194J ₹ 30,000/- 10%
technical services operations and fees for
technical services
Payment of any income in
respect of Units of Mutual
20 194K fund as per section 10(23D) No Limit 10%
or Units of administrator or
from a specified company
No tax will be deducted if
payment is made in respect
of any award or agreement
which has been exempted
TDS on compensation for
from levy of income-tax u/s
21 194LA compulsory acquisition of ₹ 2,50,000/- 10%
96 of the Right to Fair
immovable Property
Compensation and
Transparency in Land
Acquisition, Rehabilitation
and Resettlement Act, 2013.
Payment of commission,
brokerage, contractual fee,
professional fee to a
resident person by an
22 194M ₹ 50,00,000/- 5%
Individual or a HUF who are
not liable to deduct TDS
under section 194C, 194H,
or 194J.
Between ₹
Cash withdrawal If a person
23 194N 20,00,000/- to ₹ 2%
defaults in filing of return
1,00,00,000/-
Cash withdrawal If a person
24 194N > ₹ 1,00,00,000/- 5%
defaults in filing of return
Cash withdrawal If no
25 194N default is made in filing of > ₹ 1,00,00,000/- 2%
return

Ludhiana |New Delhi |Lucknow | www.guptavigg.com Page 3

 M/s Gupta Vigg & Co.
Chartered Accountants

The Threshold Limit is ₹ 50

Lacs applicable when total
sales or gross receipts or
turnover from the business
Purchase of goods
carried on exceeds ₹ 10
26 194Q (applicable w.e.f ₹ 50,00,000/- 0.10%
Crores during the financial
01.07.2021)
year immediately preceding
the financial year in which
the purchase of goods is
carried out.
10.4%
Payment of any other sum
27 195 No Limit to
to a Non-resident
31.2%
The Threshold Limit is ₹
5,00,000 for the Applicable
for E-Commerce operator
Applicable for E-Commerce for sale of goods or
operator for sale of goods provision of service
or provision of service facilitated by it through its
28 194O ₹ 5,00,000/- 1%
facilitated by it through its digital or electronic facility
digital or electronic facility or platform. The TDS at the
or platform. rate of 1% will be applicable
on resident Indians and
Domestic Companies
respectively.

RATES OF TCS APPLICABLE FOR FINANCIAL YEAR 2021-22 OR ASSESSMENT YEAR 2022-23

S.NO. SECTION SECTION/ NATURE OF PAYMENT THRESHOLD LIMIT TCS RATE REMARKS
1 206C(1) Sale of Alcohol No Limit 1.0%
2 206C(1) Sale of Tendu Leaves No Limit 5.0%
Sale of Timber obtained under a forest
3 206C(1) No Limit 2.5%
lease
Sale of timber obtained by any other
4 206C(1) No Limit 2.5%
mode
Sale of Any other forest produce not
5 206C(1) No Limit 2.5%
being timber/tendu leaves
6 206C(1) Sale of scrap No Limit 1.0%
Sale of Minerals, being coal or lignite or
7 206C(1) No Limit 1.0%
iron ore
Ludhiana |New Delhi |Lucknow | www.guptavigg.com Page 4
 M/s Gupta Vigg & Co.
Chartered Accountants

Grant of the license, lease, etc. of Parking

8 206C(1) No Limit 2.0%
lot
9 206C(1) Grant of license, lease, etc. of Toll Plaza No Limit 2.0%
Grant of license, lease, etc. of Mining and
10 206C(1) No Limit 2.0%
quarrying
11 206C(1F) Sale of motor vehicle above 10 lakhs ₹ 10,00,000/- 1.0%
12 206C(1H) Sale of any other goods ₹ 50,00,000/- 0.1%
13 206C(1G) Overseas Tour Program Package No Limit 5.0%
Remittance under LRS for education loan
14 206C(1G) taken from financial institution ₹ 7,00,000/- 0.50%
mentioned under section 80E

Remittance under LRS (for purpose other

than for purchase of overseas tour
15 206C(1G) package or for education loan taken from ₹ 7,00,000/- 5.0%
financial institution mentioned under
section 80E)

➢ Special Rate of TDS for the persons who have not filed their Income Tax Returns (Section
206AB/206CCA)

The section specifies the special rate of TDS for the following category of persons:
• Person who has not filed the Income Tax Return (ITR) for 2 previous years immediately before
the previous year in which tax is required to be deducted;
• The time limit of ITR filing under sub-section (1) of Section 139 is expired; and
• The aggregate tax deducted at source (TDS) or tax collected at source (TCS), is ₹ 50,000 or more
in each of the 2 previous years.
Note: The non-resident who does not have a permanent establishment is excluded.
Tax is required to be deducted Tax is required to be collected
(i) at the rate specified in the relevant provision (i) at twice the rate specified in the relevant provision
of this Act; of this Act;
(ii) at the rate or rates in force; or (ii) at the rate of 5%:
(iii) at the rate of 20%:

Ludhiana |New Delhi |Lucknow | www.guptavigg.com Page 5

 M/s Gupta Vigg & Co.
Chartered Accountants

Non-Applicability of Section 206AB/206CCA :

Deduction under Section 206AB/206CCA does not apply if tax is deducted under the following
sections:
• 192: TDS on Salary
• 192A: TDS on Premature withdrawal from EPF
• 194B: TDS on Lottery
• 194BB: TDS on Horse Riding
• 194LBC: TDS on Income in respect of investment in secularization trust
• 194N: TDS on cash withdrawal in excess of 1 crore

Special Rate of TDS for the persons who have not given their PAN (Section 206AA/206CC)
A recipient who fails to furnish PAN to the person making a payment would suffer TDS at the higher
of the rates mentioned below:
• At the rate specified in the relevant provision of the Act;
• At the rate or rates in force, i.e., the rate prescribed in the Finance Act (Finance Act 2019 for FY
2019-20);
• At the rate of 20%

If the provisions of section 206AA is applicable to a specified person, in addition to the provision of this
section, the tax shall be deducted at higher of the two rates provided in this section and in section
206AA

So Please also obtain the declaration that the deductee has filed the ITR's for last two years along
with evidence of the same.

Further If a person do not link your Aadhaar number with your PAN number, your PAN will become
inoperative / invalid. Accordingly the person is to be treated as a person not having PAN.

This will result in increased (20%) rate of TDS under all section of Income Tax.

Please start collecting declaration along with screen shot of income tax website showing PAN and
Aadhar link status of vendor.

➢ Further the TDS on purchase of Goods and TCS on sale of goods is elaborated as under:

Buyer to deduct TDS at the rate of 0.1% (5% in case of no PAN) on purchase of goods of value or
aggregate of value exceeding ₹ 50 lacs in any financial year.

Ludhiana |New Delhi |Lucknow | www.guptavigg.com Page 6

 M/s Gupta Vigg & Co.
Chartered Accountants

Buyer defined to be person whose total sales, gross receipts or turnover from the business exceeds ₹10
crore in the preceding financial year.

No deduction to be made if any other TDS provision or TCS provision (except TCS on sale of goods)
applicable on the same transaction. Example is given below

S.No. Buyer’s turnover Seller’s turnover Transaction value Applicability of section

1 5 crore 11 crore 0.55 crore TCS 206(IH)
2. 15 crore 7 crore 0.58 crore TDS (194Q)
3. 12 crore 13 crore 0.54 crore TDS (194Q)
4. 7 crore 5 crore 0.58 crore NA
5. 12 crore 15 crore 0.48 crore NA

➢ Due Dates of Deposit of TDS

S.NO. FOR THE MONTH NON-GOVERNMENT

1 Apr-21 to Feb-22 7th of Next Month
2 Mar-22 30-Apr-22

The due date for payment in case of TDS on sale of immovable property under section 194IA and TDS
from rent by Individual or HUF under section 194IB is 30 days from the end of the month. For eg – TDS
deducted on 15th June 2021 is required to paid on or before 30th July 2021.

➢ Due Dates of Filling of TDS Returns

DUE DATES OF FILING OF TDS RETURNS FOR FINANCIAL YEAR 2021-22 OR ASSESSMENT YEAR 2022-23

S.NO. QUARTER PERIOD LAST DATE OF FILING

1 1st Quarter 01.04.21 to 30.06.21 31-Jul-21
2 2nd Quarter 01.07.21 to 30.09.21 31-Oct-21
3 3rd Quarter 01.10.21 to 31.12.21 31-Jan-22
4 4th Quarter 01.01.22 to 31.03.22 31-May-22

Ludhiana |New Delhi |Lucknow | www.guptavigg.com Page 7

 M/s Gupta Vigg & Co.
Chartered Accountants

➢ Due Dates of Filling of TCS Returns

DUE DATES OF FILING OF TCS RETURNS FOR FINANCIAL YEAR 2021-22 OR ASSESSMENT YEAR 2022-23

S.NO. QUARTER PERIOD LAST DATE OF FILING

1 1st Quarter 01.04.21 to 30.06.21 15-Jul-21
2 2nd Quarter 01.07.21 to 30.09.21 15-Oct-21
3 3rd Quarter 01.10.21 to 31.12.21 15-Jan-22
4 4th Quarter 01.01.22 to 31.03.22 15-May-22

➢ Issuance of TDS Certificates

DUE DATES FOR ISSUANCE OF TDS/ TCS CERTIFICATES FOR FY 2021-22 OR AY 2022-23

S.NO. FORM NO. PERIODICITY DUE DATE

1 Form-16 (TDS on Salary) Annual 31-May-22
Within 15 days from due date of TDS
2 Form-16A (TDS on Non-Salary) Quarterly
return
Within 15 days of furnishing challan
3 Form-16B (TDS U/S 194IA) Quarterly
in Form 26 QB
Within 15 days from due date of TCS
4 Form-27D (TCS) Quarterly
return

➢ Penalty for late filing of TDS Return

Penalty (Sec 234E): Deductor will be liable to pay the way of fee of ₹ 200 per day till the failure to pay
TDS continues. However, the penalty should not exceed the total amount of TDS deducted for which
statement was required to be filed.

Penalty (Sec 271H): Assessing officer may direct a person who fails to file the statement of TDS within
due date to pay a penalty minimum of ₹ 10,000 which may be extended to ₹ 1,00,000.

Ludhiana |New Delhi |Lucknow | www.guptavigg.com Page 8

 M/s Gupta Vigg & Co.
Chartered Accountants

➢ Interest On Delayed Payment of TDS

Interest is chargeable on short payment/late payment of TDS. There can be the following scenarios:-

Non deduction of tax at source, either in whole or in part

Interest at the rate of 1% per month or part thereof, for the period from the date on which TDS is
deductible to the date on which TDS is actually deducted.

When TDS is deducted but payment is made lately

Interest at the rate of 1.5% per month or part thereof, for the period from the date on which TDS is
actually deducted to the date on which such TDS is actually paid.

Ludhiana |New Delhi |Lucknow | www.guptavigg.com Page 9

 Our Offices
Please visit our Linkedin Page

LUDHIANA
101-K, Kismat Complex, G.T. Road, Miller Ganj, Ludhiana – 141003
Email: [email protected] Mobile: +91 9872213186

DELHI
E-61, LOWER GROUND FLOOR, KALKAJI, NEW DELHI – 110019
Email: [email protected] Mobile: +91 9810129612

LUCKNOW
D-305, Rohini Apartments, Gomti Nagar Extn, Lucknow – 226010
Email: [email protected] Mobile: +91 98071 99500

Gupta Vigg & Co.

CHARTERED ACCOUNTANTS