Tax Deducted at Source: - Presented By: CA Prabhat Kumar Tandon Fca, Disa (Icai)

Tax Deducted At
Source
-Presented By:
CA Prabhat Kumar Tandon
FCA,DISA(ICAI)
Introduction
Income is Earned over a period of time but the
assessment/determination of tax liability takes
place much later. To avoid a liquidity problem of
tax payer and also to ensure regular flow of
revenue for the government, the Income Tax Act
has provided for periodic recovery of tax from
income liable to tax by requiring the tax to be
deducted at source from certain income/payments
as and when such income/payments credited.
The concept of TDS is that the person responsible

for making certain payments in required to deduct
tax at source in accordance with Income Tax
provisions.
Payments covered under the

scheme of TDS
o Salary (Sec.192)
o Interest on Securities (Sec.193)
o Dividends (Sec.194)
o Interest other than interest on securities
(Sec.194A)
o Winnings from Lotteries or crosswood puzzles
(Sec.194B)
o Winnings From Horse Race (Sec.194BB)
o Payments to Contractors and Sub- Contractors
o Insurance Commission (Sec.194D)
o Payments to NON-resident sportsmen or sports
association(Sec.194E)
o Payment in respect of NSC(Sec.194EE)
o Payments in respect of Repurchase of units of Mutual

Funds UTI (Sec.194F)
o Commission on Sale on Lottery Tickets (Sec.194G)
o Commission or Brokerage (Sec.194H)
o Rent (Sec.194I)
o Fees for Professional or Technical Services (Sec.194J)
o Payment of compensation on acquisition of certai
immovable property (Sec.194LA)
o Other Sums (Sec.195)
o Long term capital gain (Sec.196B)
o Income or Long term capital gain from Foreign
currency Bonds/ Global depository Receipts (Sec.
196C)
o Income of Foreign Institutional Investors from
Scurities (Sec.196D)
Procedure Of Filing e-TDS Returns

Obtain TAN
Step-1 Obtain TAN

Tax deduction account number is a 10-digit alpha
numeric number issued by Income Tax
department.TAN is to be obtained by all the persons
who are responsible for deducting tax at source or to
collect Tax at source.
Procedure to obtain TAN Offline-An application for allotment of TAN is to be
filed in Form no:49B and submitted to any TIN-FC.
Addresses of TIN-FC are available at NSDL-TIN
website.(https://www.tin-nsdl.com).
Online-online application for TAN can be made from
the website of NSDL-TIN website.
Structure of TAN-
Step-2 Tax deduction from liable payments
Step-3 Deposit TDS (Challan 281)

Mode of Payment:
CHALLAN -281 (Offline)
CHALLAN -281 (Online)
Time Limit/Due Dates

As per Notification no: 30/2012 Dated 29.04.2016
Filing the Quarterly Statements

Quarterly TDS statements shall be furnished in
following forms:Form 24Q
Statement of deduction of tax from salary under section 192.
Employees Salary Detail.
Employees Perquisites Detail.
Ex. Employees Pension Details.
All Others transactions details related to Employees/Ex.
Employees or Pension payments to Govt./ Non Govt. Ex.
Employees.
Form 27Q
Statement of deduction of tax under section 193 to 196D in
respect of the deductee who is a non-resident (not being a
company) or a foreign company or resident but not ordinarily
resident.
TDS on NRO deposits.
Form 26Q
Statement of deduction of tax under Section 193 to

196D in any other case.
However in case tax is deducted under section 194-IA,
the deductor shall furnish a challan-cum-statement in
Form 26QB within a period of seven days from the end of
the month in which the deduction is made. In this case,
no statement shall be filed separately.
TDS on Interest on FDR/RD.
TDS on Payment of Building Rent/ Generator Rents.
TDS on Payment of Auditors Fees.
TDS on Payment of Vehicle Hire Charges.
TDS on Payment of Guard salary to the service provider
company. (U/s 194C)
TDS on Payment to Venders.
Consequences of default
Interest u/s 201A
Conditions of Non deduction of TDS

Condition No. 1- Submission of 15G/H
Conditions you must fulfill to submit Form 15G/15H
You are an individual or HUF

You must be a Resident Indian
You should be less than 60 years old
Tax calculated on your Total Income is nil (Including
Interest income earned from Bank FDR/RD)
The total interest income for the year is less than the
minimum exemption limit of that year, which is Rs
2,50,000 for financial year 2015-16. (Limit is Rs
2.5lakhs for FY 2014-15, FY 2015-16 and FY 2016-17).
For submission of15H Individual must be 60 years or
above and tax calculated on total income must be NIL.
Condition No. 2
Submission of U/S 197

Certificate
Assessing Officer issue a certificate
for deduction of income-tax at a
lower rate or, as the case may be,
no deduction of income-tax from
payments to be received by him
with Unique certificate number.
Certificate number must be quoted
in e-TDS return.
Condition No. 3Exempt under section 10
No need To Deduct TDS where income is unconditionally exempt

under section 10 and statutorily not required to file return.
Avail Benefit of Circular no 4/2002 dated dated 16/7/2002 in case of
certain Educational Institutions and others for Non deduction of
TDS.
Funds or authorities or Boards or bodies, by whatever name called,
whose income is unconditionally exempt under section 10 of the
Income-tax Act and who are statutorily not required to file return of
income as per section 139 of the Income-tax Act, there would be no
requirement for tax deduction at source since their income is
anyway exempt under the Income-tax Act. The Board has clarified
this vide Circular no. 4/2002 dated 16/7/2002 providing relief to no.
of institutions who has to file return just to claim refund of their
TDS.
Issue Of TDS Certificate (Sec- 203)

Sr.
No.
Form no
Periodicity
16 For
Salary
Annual
16A Other Quarterly

than
salary
Cut off Date
31st May of following

financial year
Within 15 days from due

date of furnishing the TDS
statement under rule 31A
FINALLY:
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Tax Deducted at Source: - Presented By: CA Prabhat Kumar Tandon Fca, Disa (Icai)

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Tax Deducted At

The concept of TDS is that the person responsible

Payments covered under the

o Payments in respect of Repurchase of units of Mutual

Procedure Of Filing e-TDS Returns

Step-1 Obtain TAN

Step-2 Tax deduction from liable payments

Step-3 Deposit TDS (Challan 281)

CHALLAN -281 (Offline)

CHALLAN -281 (Online)

Time Limit/Due Dates

Filing the Quarterly Statements

Statement of deduction of tax under Section 193 to

Conditions of Non deduction of TDS

You are an individual or HUF

Submission of U/S 197

Condition No. 3Exempt under section 10

No need To Deduct TDS where income is unconditionally exempt

Issue Of TDS Certificate (Sec- 203)

16A Other Quarterly

Cut off Date

31st May of following

Within 15 days from due

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