In the Financial World TDS is “Tax deducted at

Source”

TDS contributes 40% to the gross direct tax

collections

It has been brought with the principle of

“Pay As you Earn” i.e. Collection of Tax in

Advance.

If no TDS is deducted, expenses are

Disallowed u/s 40a(ia).

Who : Every deductor

When : Within one month of first deduction of Tax

Where : TIN FCs/NSDL

How : In form ‘49B’

1ST

StepDeduct Tax as per provision

2nd

Step

Deposit to Govt Account in Challan 281

3rd

StepFile Quarterly statements

4th

StepIssue TDS Certificates

Mandatory to quote TAN on✓ Quarterly statements✓ Challans✓ TDS Certificates✓ Other documents pertaining to transactions

PENALTY OF Rs. 10,000/- in each case (Sec 272BB)

i) Non obtaining a TANii) Non Quoting of TANiii) Providing false TAN

Chapter XVII of the Income Tax Act deals with TDS & TCS

-Section 190 to 206CA deal with laws and procedures for both TDS and TCS

DEDUCTOR- ANY PERSON

DEDUCTEE- RESIDENT OR NON RESIDENT

RATE OF TDS : SLAB RATE APPLICABLE TO SPECIFIC

EMPLOYEES ON THE BASIS OF HIS ESTIMATED INCOME.

ON ACTUAL PAYMENT

DEDUCTOR - ANY PERSON

DEDUCTEE – RESIDENT

RATE OF TDS – 10%

LIMIT : >=5000.

NOTE:NO TDS IF:-

1. SECURITIES IS IN DEMAT FORM AND

2. IS LISTED ON STOCK EXCHANGE

DEDUCTOR- ANY PERSON

DEDUCTEE- RESIDENT OR NON RESIDENT

RATE -10%

LIMIT : >=2500.

NOTE :• NO TDS ON DIVIDEND EXEMPT U/S 115-O,

• TDS ON DEEMED DIVIDEND U/S 2(22)(e).

DEDUCTOR- PERSON LIABLE TO GET THEIR BOOKS AUDITED DEDUCTEE – RESIDENT RATE – 10% LIMITS:

◦ >=10000 WHERE PAYER IS BANKING CO. , CO-OP. SOCIETY BANK , POST OFFICE

◦ >=5000 IN OTHER CASE

NOTES:NO TDS :

1. PAYMENT IS MADE TO BANK; FINANCIAL CORP. ESTB. UNDER ANY CENTRAL , STATE, PROVINCIAL ACT; PARTNER OF FIRM..

2. INT. UNDER INCOME TAX

3. ON ZERO COUPOUN BOND Note:- Even if the amount is credited to suspense account or any other

account, TDS to be made

Person to be an individual or HUF

Person to be a Resident Indian

Individual should be less than 60 years old

Tax calculated on Total Income is nil

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 2017-18. the CBDT has issued Notification No. 6/2017to provide that New Form 15G/15H needs to be filed whenever estimated total income changes and new investments are made by the taxpayer.

DEDUCTOR – ANY PERSON

DEDUCTEE – ANY PERSON

RATE – 30%

LIMIT : >=10000

DEDUCTOR- PERSON LIABLE TO GET THEIR BOOKS AUDITED

DEDUCTEE – RESIDENT

RATE: PAYEE IS IND. OR HUF – 1%

ANY OTHER ASSESSEE – 2%

LIMIT: SINGLE CONTRACT >=30000

ANNUAL AGG. AMOUNT >=100000.

NOTES :1. NO TDS IF PAYMENT IS FOR PERSONAL PURPOSE OF IND. OR HUF.

2. NO TDS IF TRANSPORTER FURNISHES HIS PAN , DECLARATION OF HAVING LESS THAN 10 TRUCKS.

3. TDS ON INVOICE VALUE EXCLUDING MATERIALS AMOUNT IF SEPARATELY SHOWN , ELSE ON WHOLE AMOUNT

DEDUCTOR- PERSON LIABLE TO GET THEIR BOOKS

AUDITED

DEDUCTEE – RESIDENT

RATE : 5%

LIMIT: =>15000

NOTE :• NO TDS ON PAYMENT BY BSNL & MTNL TO THEIR PCO

FRANCHISEES

• NO TDS ON TRANSACTION RELATED TO SECURITIES

DEDUCTOR- PERSON LIABLE TO GET THEIR BOOKS AUDITED

DEDUCTEE – RESIDENT

RATE : ◦ FOR USE OF PLANT & MACHINERY – 2%

◦ FOR USE OF LAND ,BUILDING , FURNITURE AND FITTING –10%

LIMIT : =>1,80,000

NOTE :1. TDS TO BE DEDUCTED ON WAREHOUSING CHARGES AND

NON REFUNDABLE DEPOSITS ALSO

2. NO TDS ON SERVICE TAX COMPONENT

DEDUCTOR – PERSON LIABLE TO GET THEIR BOOKS

AUDITED

DEDUCTEE – ANY RESIDENT

RATE : 1%

LIMIT: >50,00,000

NOTE : • NO TDS ON ACQUISITION OF AGRICULTURE LAND.

new section 194-IB in the Act provide that Individuals or a HUF (other than those covered under 44AB of the Act), responsible for paying to a resident any income by way of rent exceeding fifty thousand rupees for a month or part of month during the previous year, shall deduct an amount equal to five per cent. of such income as income-tax thereon.

tax shall be deducted on such income at the time of credit of rent, for the last month of the previous year or the last month of tenancy if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.

In order to reduce the compliance burden, the deductor shall not be required to obtain tax deduction account number (TAN) as per section 203A of the Act. It is also proposed that the deductor shall be liable to deduct tax only once in a previous year.

It starts with non-obstante clause to exclude applicability of section 194-IA.

The payer or tax deductor would be any person.

The payee would be an individual or a HUF being a resident.

There is monetary consideration payable under specified agreement WHICH is registered.

Tax would be deductible @ 10%. Tax at source should be deducted at earliest of

credit to the account of payee or actual payment of money consideration.

No threshold limit provided.

DEDUCTOR- PERSON LIABLE TO GET THEIR BOOKS AUDITED

DEDUCTEE – RESIDENT

RATE : 10%

LIMIT :=>30,000

NOTE:• NO TDS IF PROFESSIONAL FEES PAID BY NON RESIDENT TO

RESIDENT THROUGH BANKING CHANNELS AND NON RESIDENT DO NOT HAVE ANY AGENT IN INDIA

• NO TDS ON PAYMENT MADE BY IND. & HUF FOR PERSONAL PURPOSE.

DEDUCTOR – ANY PERSON

DEDUCTEE – NON RESIDENT OR FOREIGN COMPANY

RATE : AT THE RATE IN FORCE

7th of Next Month (except for month of March)

For March month : It is 30th April

If any person does not deduct or doesn’t pay or after so deducting fails to pay whole or part of the tax as required by or under this Act, he or it shall, without prejudice to any other consequences which he or it may incur, be deemed to be an assessee in default in respect of such tax.

Such person shall also be liable to pay interest U/s 201(1A) & Penalty.

Where the assessee after deducting TDS fails to pay the tax as required by or under this Act

Liable to simple interest @ 18% p.a [i.e. 1.5% p.m.] from the date on which the tax was deducted till the date on which the payment is actually made.

Where the assessee fails to deduct TDS and make the payment as required by or under this Act

Liable to simple interest @ 12% p.a [i.e. 1% p.m.]from the date on which the tax was deductible till the date on which the TDS deducted.

➢ Interest U/s 201(1A) shall be paid before filing TDS returns.

➢Where tax has not been paid after deduction, the tax + interest shall be charged .

➢ Section 234 E

➢ Applicable to Returns due after 01/07/2012

➢ Non filing & Late filing of TDS, TCS Returns

➢ ` 200/- per day – maximum to the extent of TDS/TCS

➢ To be paid while filing TDS Statement.

Form 24Q Quaterly Last Day of Next Month of quarter & 31st May

for the Last Quarter Form 27Q Quaterly As Above Form 26Q Quarterly Same as for Form 24Q, 27Q Form 27EQ Quaterly 15th of Next month of quarter & 15th May for

last quarter

Sec 271C: Penalty equal to the amount that the deductor failed to deduct/collect

Prosecution (Sec 276B): If a person fails to pay to the credit of the Central Government,—

Rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.

Sr No. Section Reason Penalty / Interest

1 276 B Non Payment of TDS Prosecution Proceedings with Imprisonment for a Term of 3 months extend up to 7 year

2 279 (2) Compounding of section 276 B

3 221 Assesse in default u/s 201(1A)

Penalty equals to total of Tax in Arrears

4 40(a)(i)/(ii) Non Deduction of TDS

Expenses Are disallowed

5 220 (2) Demand u/s 156 Additional Interest of 1 % per month

6 201(2) After Deduction Non Payment

Charge is created on the Asset of the Entity

7 201(1A) Late Payment of TDS Interest is charged at a rate of 1.5 % per month

8 271C On Failure to Deduct TDS as required to be Deducted

Penalty is equal to the amount of failure

9 271 H Failure to File TDS Return/ Incorrect return Filed

Penalty of minimum Rs.10,000/- up to Rs.1,00,000/-

10 234 E Fees for Late Filing TDS Return

Rs. 200/- Per Day

11 272 A (2) Non Issuance of TDS Certificate

Rs. 100/- per Day

12 272 BB Non Compliance of Provision under sec 203 A

Penalty of Rs.10,000/-

EVERY PERSON WHOSE TDS IS DEDUCTED IS

MANDATORY REQUIRED TO FURNISH PAN .FROM THIS

F.YR IT IS MANDATORY FOR TCS TOO

NON FURNISHING THE PAN SHALL LET TAX TO BE

DEDUCTED/COLLECTED AT THE HIGHER OF THE

FOLLOWING :• AT THE RATE SPECIFIED IN THE ACT.

• AT THE RATE IN FORCE

• AT THE RATE OF 20%.

CONCEPT OF TCS:

▪ In this concept the seller of specified goods

collect tax from the buyer under the section

206C (1).

▪ The whole concept of TCS is from the income

tax act is to widen the income tax scope and to

include more and more persons into tax grip.

▪ Buyer is a person who buys the goods for sale. The mode of buying may be direct purchase, tender or any auction to the specified goods.

▪ These are not covered as buyers under the section:- Central/State government.- Public company.- Embassy, High commission or representation

offoreign country.

- Any club.- Any person who buys the goods for personal

consumption & not for sale.

▪Seller of the specified goods is covered in TCSact.

▪Seller may be

- individual or huf- firm- co-operative society- company- state or central government- local authority

▪ Specified goods are those goods, sale or purchase of which attracts TCS. ▪ The list of such goods is:

1- Alcoholic liquor for human consumption.2- Timber3- Tendu leaves.4- Forest produce other than timber and tendu

leaves.5- Scrap or waste6- Minerals7- Toll plaza & Parking Lot8- Minerals being Coal or lignite or iron ore (1.7.2012)

Alcoholic liquor for human consumption 1% Timber 2.5% Tendu leaves 5% Forest produce other than timber and tendu leaves 2.5% Scrap 1% Minerals 2% Toll plaza, Parking lot, Mining and quarrying * 2 %

▪ The TCS will be zero or exempt when the buyerbuys the goods for manufacturing orReproduction and not for sale.

▪ In this condition the buyer supplies Form 27C tothe seller mentioning that he is the not a traderand will reprocess the goods which arepurchased with duly stamped and signature.

▪ The seller needs to deliver copy of Form 27C tothe Commissioner of income tax.

Time limit for TDS / TCS Certificates:

Form 16

To be issued annually, within 15 days from due date of filing of TDS/TCS statements.

Form 16A

Within 15 days from due date of filing of TDS/TCS statements

Form 27D

Within 15 days from due date of filing of TDS/TCS statements

“TRACES is a web-based application of the Income Tax Department that provides an interface to all stakeholders associated with TDS administration. It enables viewing of challan status, downloading of NSDL ConsoFile, Default reports, making correction in statement, allows to correct PAN, A.Yr and download TDS Certificates Form 16 / 16A.”

13 October 2017 40

CPC (TDS) for Deductors

TRACES: https://www.tdscpc.gov.in

Dashboard

▪ Statement Status and Defaultpayable

▪

▪ Deductor Compliance Profile

Online Corrections

View Defaults Summary

Online PAN Verification

Statement and Challan Status

TAN – PAN Consolidated File

Downloads

▪ TDS Certificates Form 16/ 16A

▪ Form 27D

▪ Transaction Based Report for Non –Residents

▪ Consolidated Statement File

▪ Justification Reports

e-Tutorials and FAQs

Circular and Notifications

CPC (TDS) Communications

Statement Status

Challan Status

Challan Status for statement

View TDS/TCS Credit

Pan Verification

Request for Conso File

197 Certificate validation

Request for refund

Track Correction Request

Declaration for Non- filing of Statement

Declaration to Deposit Lower TDS

OLTAS Challan Correction

Request for 26A/27BA

45

Click here to go to challan status. If challan is not consumed in any

statement, detail will not be displayed

Click here to agree the declaration

Click on ‘Cancel’ and go to previous page

If the user disagree to the declaration, gets two option either add another challan or move back to the challan detail page to accept the declaration

46

Furnish Form 26B

acknowledgement to your

Jurisdictional Assessing

Officer within 14 days from

the date of transmitting the

data electronically. Failing to

do so will lead to rejection of

your refund request.

View the 26B acknowledgement

OLTAS Challan Correction

OLTAS Challan Correction

Request for 26A/27BA

View Default Summary

Request for Correction

Request for Justification Report Download

Track Correction Request

View Saved Statement

Correction Ready for Submission

Tag/Replace Challan

Track Request for Tag/Replace Challan

This feature enables the Deductor to file Online Correction statements

through TRACES portal without downloading TDS/TCS Consolidated File.

Following facilities are allowed in Online corrections:

PAN Correction

Challan Correction

Add challan to statement

Modify/Add deductee row

Modify Salary details

Pay 220I, Late Payment, Late Deduction and Late Filing Interest

Update of Personal Information

Movement of Deductee Rows

Pay 220I, LPI, LDI and LF

Select ‘ Pay 220I, LP,LD, Interest, Late filing , Levy’ from drop

down

Inbox- Contains notices, intimations from TDS-CPC

Request For resolution

Resolution Tracking

Declaration for Paperless Intimation

Notices from Assessing Officer

Requested Downloads

Form 16/16A/27D

Transaction based Report

Download Challan Status Inquiry

View Your BIN-For Govt. Deductors

Aggregated TDS Compliance Functionality

If a PAN is associated with more that one TANs for example PAN

of the Central Office, Headquarter etc. having more that one TAN of

its branches, said PAN can review the "Aggregated TDS

Compliance" report on a regular basis to improve TDS compliance

at Organization level.

PAN can view TDS performance for all of its respective TANs by

logging into TRACES as a Taxpayer.

The download of the list of defaults of various TANs associated

with a PAN will be available in Excel Format for which a request has

to be placed.

Aggregated TDS Compliance Download Request Page

Drop Down Values: Total Default,

Short Deduction, Short Payment and

so on

Default can be viewed across all

F.Y from F.Y 2007-08 onwards for all

TANs

In TRACES website, e-tutorial is given, which is self explanatory.

Will help to resolve your problems without coming to the department.

THANK YOU