SEMINAR ON

TAX DEDUCTED AT SOURCE

PRESENTED BY

CA B. D’SOUZA

IS TDS TEDIOUS???

SET UP OF TDS_______________________________________________________________________________________

• Every deductor is required to obtain a unique

identification number called TAN (Tax

Deduction Account Number) which is a ten

digit alpha numeric number. This number has

to be quoted by the deductor in every

correspondence related to TDS

TAN (TAX DEDUCTION ACCOUNT NUMBER)_______________________________________________________________________________________

� Salary (Sec.192)

� Payments to Contractors and Sub-contractors (Sec.194C)

� Commission or Brokerage (Sec. 194H)

� Rent (Sec. 194I)

� Payment on transfer of Certain immovable property other than Agricultural Land (Sec.194IA)

� Fees for Technical or Professional Services (Sec. 194J)

PAYMENTS COVERED UNDER SCHEME OF TDS…

(FOR CHARITABLE TRUSTS)_______________________________________________________________________________________

• Who is the payer

• Employer

• Who is the recipient

• Employee

• Payment Covered

• Taxable Salary of the employee

• At what time TDS to be deducted

• At the time of payment

• Maximum amount which can be paid without tax deduction

• The amount of exemption limit (i.e.,Rs.160000/190000/240000 for A.Y. 2011-12)

• Rate at which tax to be deducted.

• As per Calculation

• When the provisions are not applicable

• --

• Is it possible to get the payment without tax deduction or with lower tax deduction

• The employee can make application in Form No.13 to the Assessing Officer to get the certificate of lower tax deduction or no tax deduction.

SALARY (Section. 192 (B))_______________________________________________________________________________________

Payer Employer

Recipient Employee

Payment Covered Taxable Salary of the employee

TDS to be deducted At the time of payment

Maximum amount which can be paid without tax deduction

The amount of exemption limit (i.e.,Rs.250,000 for A.Y. 2017-18)

if the total income is less than 500,000.00 then the exemption limit is Rs. 300,000.00

Rate at which tax to be deducted. As per Calculation

PAYMENTS TO CONTRACTORS (Section. 194 (C))__________________________________________________________________________________________

Payer Specified Person

Recipient Any Resident Person

Rate of TDS 2% for persons other than individuals

1% for Individuals

Payments Covered under the Section All types of Contract works

i.e. Payments to civil contractors,

printers, caterers, tour operators,

advertisements, decorators etc.

Basic Limit Rs. 30,000.00 incase of single

payment;

or Rs. 1,00,000.00 incase of series of

payment (i.e. aggregate of all

payments) throughout the year.

Point of Deduction At the time of payment OR at the

time of credit (Even advances are

considered as payments)

If the 4 letter of the PAN of Contractor is P (as

shown below then the Contractor is an

individual) or H ( then the contractor is an

HUF)

HOW TO FIND WHETHER THE CONTRACTOR IS AN

INDIVIDUAL OF HUF__________________________________________________________________________________________

RENT (Section. 194 (I))__________________________________________________________________________________________

Payer Any Person paying Rent(other than

individual and HUF)

Recipient Any Resident Person

Rate of TDS 10%

Payments Covered under the Section “Rent” rent includes all payments for

use of Land, Building, Machinery,

Plant, equipments, Furniture and

Fittings

Basic Limit Rs. 180,000.00 either through single

payment or through series of

payments in a financial year

Point of Deduction At the time of payment or at the

time of credit (Even advances are

considered as payments)

PAYMENT ON TRANSFER OF CERTAIN IMMOVABLE

PROPERTY OTHER THAN AGRICULTURAL LAND

(Section. 194 (IA))_______________________________________________________________________________________

Payer Any Person Purchasing Land or

Buildings other than agricultural

Land

Recipient Any person who is transferring the

Immovable Property

Rate of TDS 1%

Payments Covered under the Section Sale of all immovable property other

than Agricultural Land

Basic Limit Rs. 50,00,000.00

Point of Deduction At the time of payment or at the

time of credit (Even advances are

considered as payments if exceeding

the limit)

FEES FOR PROFESSIONAL OR TECHNICAL

SERVICES (Section. 194 (J))_______________________________________________________________________________________

Payer All persons other than individual and

HUF

Recipient Any Resident Person

Rate of TDS 10%

Payments Covered under the Section All types of Payments for Professional

and Technical Services

Professionals includes Advocates,

Chartered Accountants, Doctors,

Architects and Engineers etc.

Technical Services Includes Smart

Class Payments, Royalty, software

Development etc.

Basic Limit Rs. 30,000.00 per Year

Point of Deduction At the time of payment OR at the

time of credit (Even advances are

considered as payments)

FEES FOR TECHNICAL SERVICES - SMART

CLASSES (Section. 194 (J))_______________________________________________________________________________________

Payer All persons other than individual and

HUF

Recipient Any Resident Person

Rate of TDS 10%

Payments Covered under the Section All types of Payments for smart

classes for the content and services

(including installation charges).

Payments for Hardware portion does

not attract TDS provided VAT paid

separate bills are obtained.

Basic Limit Rs. 30,000.00 per Year

Point of Deduction At the time of payment OR at the

time of credit (Even advances are

considered as payments)

If PAN is not provided/or if the deductee does

not have PAN then Tax has to deducted at the

rate of 20%.

OTHER PROVISIONS_______________________________________________________________________________________

DEDUCTOR APRIL TO FEBRUARY MARCH

Government On or before 7th of

Next month for

Salary and On the

same day for other

than salary

On or before 7th of

April

All other Persons On or before 7th of

Next month in

which tax was

deducted

On or before 30th of

April

TIME LIMIT FO PAYMENT OF TAX DEDUCTED AT

SOURCE _______________________________________________________________________________________

CHALLAN FOR PAYMENT OF TAX DEDUCTED AT

SOURCE (ITNS – 281)_______________________________________________________________________________________

RETURN TYPE PERIODICITY

Salary Returns Quarterly in Form

No. 24Q

Returns other than

salary Returns

Quarterly in Form

No. 26Q

RETURN TYPE__________________________________________________________________________________________

QUARTER DUE DATE FOR FILING QUARTERLY

RETURN

Quarter - 1

(April to June)

On or before 15th July

Quarter – 2

(July to September)

On or before 15th October

Quarter – 3

(October to December)

On or before 15th January

Quarter – 4

(January to March)

On or before 15th May

TIME LIMIT FOR PAYMENT OF FILING OF TDS

RETURNS_______________________________________________________________________________________

CERTIFICATE DUE DATE FOR ISSUE

Form No. 16 31st May

Form No. 16A Within 15 days from the date

of filing the Form 26Q

TIME LIMIT FOR ISSUE OF TDS

CERTIFICATES (Sec. 203)_______________________________________________________________________________________

NATURE OF DEFAULT INTEREST , PENALTY AND

PROSECUTION

Failure to Deduct Tax (Sec.201 (1)) Penalty : Amount equal to tax not

deducted

Interest : 1% per month from the date

from which tax is not deducted till the

date deduction.

Failure to Deposit the tax deducted

at source (Sec.201(1A) and

Sec.276B)

Interest : 1.5% per month from the

date of deduction till the date of

Deposit.

Prosecution : Rigorous Imprisonment

for a term which shall not less than 3

months but may extend to 7 years with

Fine

Failure to Apply for TAN (Tax

Deduction Account Number)

(Sec.203A and Sec.272BB)

Penalty : Rs. 10,000.00

PENAL PROVISIONS_______________________________________________________________________________________

NATURE OF DEFAULT INTEREST , PENALTY AND

PROSECUTION

Failure to Furnish Returns

within due date (Sec. 200(3)

and Sec. 272A(2)(k))

Penalty : Rs. 200.00 per day

during which the failure

continues subject to maximum

of TDS amount

Failure to issue TDS

certificates within the time

limit prescribed

(Sec.272A(2)(g))

Penalty : Rs. 200.00 per day

during which the failure

continues subject to maximum

of TDS amount

PENAL PROVISIONS

CONTINUED…._______________________________________________________________________________________

SO TDS IS TEDIOUS UNLESS

COMPLIED…

QUESTIONS???

THANK YOU