Concept of TDS and TCS and filing procedure

CONCEPT OF TDS/TCS AND

FILING PROCESURE BY Raushan Kumar Ray (+91 80957 27004 )

CONTENTS OF CONCEPTSPart

Particular

I General understanding of TDS/TCSII Deduction of TDS

III Deposit /Payment of TDS

IV Declaration of TDS

V Preparation and submission of TDS Return

Part - IGeneral Understanding of TDS and TCS

1. What is TDS???• Types of tax levied by Indian Govt.• Wherein taxes are collected on the basis of “pay as you get”• Withholding tax or TDS means deduction of tax as an when the transaction takes place i.e. when the payment is made or payable, whichever is earlier.

2. Enactment• Income Tax Act 1961 , Chapter XVII – B has covered two important items as follows

• Tax Deducted at Source (TDS) [ Sec 192 to Sec 206C]

• Tax Collection at Source (TCS) [ Sec 206CA and 206

CB]

• Others [ Sec 207 to 234E ]

3. TDS - 3D System

D D DDeduct as per

Ch.-XVII-B

Deposit On or Before

Due Dates

Declare Before

Due Dates

CYCLE

STARTS

FROM

CYCLE

ENDS

AT

YES YES

NO

Deemed Default U/S

201(1)

Penalty U/S 271C/271CA

To the extent of TDS

NO

Interest U/S 201(1A)

Prosecution U/S 276B

-@ 1% till Dt. Of Deduction

-@ 1.5% till Dt. Of deposit

Imprisonment -not be less than 3 month but-May extend to 7 year

-

NO

Penalty U/S 234E

-Rs 200 Per day- Maximum to the extent of TDS

4. Bare Acts

Sec 201(1)Sec 201(1A)Sec 271CSec 271CA

Sec 276B

Sec 234E

PLEASE DOUBLE

CLICK ON THE PDF TO

OPEN

Part-IIDeduction of

TDS

5. TDS Liabilities As per provision of Chapter XVII-B T.D.S. on salary is required to be made only if the income chargeable under the head salary exceeds the threshold limit of basic exemption. For other payment the liability for the payment arises only if the amount of payment exceeds the limit/limits prescribed under the respective provisions of this chapter.

6. Different income on which TDS/TCS is to be deducted and it's rates.

Please Double Click to open the PDF (Pls note it is relevant from A.Y. 2017-

18 and onward.)

Part-IIIDeposit /Payment of TDS

7. TDS/TCS payment due dates

Assessee Amount paid and Credited Due date of deposit of TDS

Tax deposited without Challan Same DayTax deposited with Challan 7th of Next MonthTax on perquisites opted to be deposited by Employer 7th of Next MonthIn the month of march 30th April

in other month 7th of Next Month

Due dates for payment of TDS

Govt. Assessee

Others Assessee

8. Whether e-Payment of TDS is Mandatory….????

As Per RBI Notification No. DGBA.GAD. No. H. 10875 / 42.01.038 /2007-08

E-Payamente of TDS is mandatory flor following categories of tex payers

• A company• A person (other than a company ), to whome provisión of Sec 44AB are aplicable

Double Click the PDF to

open the RBI Circular

9. e-Payment Procesure of TDS

Step-IGo to : www.tin-nsdl.com

1. Click on “Services”

2. Click on “e-

payment”

9. e-Payment Procesure of TDS Continued….

Step II:The Windows will be directed to following page

Click on “CHALLAN

NO./ITNS 281

9. e-Payment Procesure of TDS Continued….

STEP III:The windows will be appeared as e-payment challan

Provide the detail and

proceed for the payment

10. Manual Payment of TDSTds can be deposited manually by the the assesses other than

• A company• A person (other than a company ), to whome provisión of Sec 44AB are aplicableProcedure of manual payment of TDS1. Download the TDS Challan 281 for the following

websites http://www.incometaxindia.gov.in/pages/downloads/challans.aspx

https://www.tin-nsdl.com/oltas/oltas-download.php 2. Fill all the information's required3. Go to Respective branch and Deposit the tax.

11. Dowload the TDS Challan 281http://www.incometaxindia.gov.in/pages/downloads/challans.aspx

Go to this website

Download the Challan 281 by Clicking on the

format required.

12. Dowload the TDS Challan 281

https://www.tin-nsdl.com/oltas/oltas-download.php

1. Go to this website

2. Click of “Select” menu

3. Click on “Challan No. 281”

Part-IVDeclaration of

TDS

13. Due Date of Filing of TDS Return

Quarter Period For both Government and non government Deductors

Quarter-1

01st April to 30th June

31st July of the financial year

Quarter-2

01st July to 30th September

31st October of the financial year

Quarter -3

01st October to 31st December

31st January of the financial year

Quarter-4

01st January to 31st March

31th May of the financial year immediately following the financial year in which the deduction is made.

Due dates with effect form 1st day of June 2016 As per CBDC Notification30_2016 dated 29th April 2016. ( Double Click on PDF to Open the Notification)

14. Different kinds of TDS Return Form

Form No. Particulars/ TDS/TCS TyperForm 24Q Statement for tax deducted at source

from SALARIES.

Form 26Q Statement for tax deducted at source on all payment EXCEPT SALARIES.

Form 27Q Statement for deduction of tax from INTEREST, DIVIDEND or any OTHER PAYMENT to NON-RESIDENTS.

Form 27EQ Statement of collection of tax at source.

Form 27A The quarterly returns statements should be accompanied by a signed verification in Form 27A.

Preparation and submission of TDS

Return

Part-V

15. Pre-requisits of Prepation of TDS Return.

Install the JAVA (Version : SUN JRE : 1.6 onwards)

Download Software – Income tax department “RPU Version 1.8 )

Download validation Software - TDS –FVU Version 5.3

CIF Files (Challan Information)

16. Installation of JAVAJava Can be downloaded andInstalled from Following Siteshttps://www.ibm.com/developerworks/java/jdk/http://www.oracle.com/technetwork/java/index.html

Click on the download links to download JAVA –

Version 8

Note: After downloading the Zip file extract it and double click on setup file to install, follow up the instruction which populates during installation.

Go To:- https://www.tin-nsdl.com/etds-etcs/eTDS-RPU.php

17. Install Software – Income tax department “RPU Version 1.8 )

Click on “Download RPU Version 1.8” To download the Software.

17. Continued……Extract the downloaded file……Following view will come…

Double click “TDS_RPU” to

Start predation of of TDS Return

18. TDS Return prepation Utility(RPU)

1. Select the type of Form No.

2. Select the type of Return,

whether it is “Regular or Correction

3.Click to continue

18. Continued……….

Provide with all

the details

Required

18. Continued……….

After providing all the details “Create the File” by clicking

on this menu.

19. Installatin of – TDS _ FVU Version 5.3

Go to: https://www.tin-nsdl.com/etds-etcs/etds-file-validation-utility.php

Click on it to

download

19. Continued….Extract the downloaded file ….following view will come…….

Double Click on this file to open.

19. Continued….

Browse the file created under RPU Utility and validate the same

20. Submission of TDS Return In CD/Pen DriveEach e-TDS/TCS return saved in a CD/Pen Drive to be submitted along with a signed copy of the control chart (Form 27A). With effect from February 1, 2014, it is mandatory to submit Form 27A generated by TDS/TCS FVU (File Validation Utility) duly signed, along with the TDS/TCS statement(s). Any other Form 27A submitted will be treated as invalid submission and the same will be rejected by TIN-FC branches. 

Double Click on PDF to Open Form

27A

21. Submission of TDS Return online

Please follow up the Below “TDS_TCSStatement_Upload_User_Manual”

Double Click on PDF to

open.

DOHEAR

ME AT

RAUSHAN KUMAR RAYCONSULTANT AUDIT AND TAX+91 97389 15732 80957 27004E-mail: LNRRAUSHAN1988@GMAIL.COM