AKSHAY KSHIRSAGAR
WHAT IS TAX DEDUCTED AT SOURCE
Tax Deducted at Source is tax deducted by the deductor on behalf of tax payer and paid to Income Tax Department. Person making the payment of goods or service or salary is responsible to deduct tax from the due payment. The deducted tax will reflect in taxpayers 26AS when the deductor file his TDS return under 24Q or 26Q.
TDS is deducted on the following types of payments:
1. Salaries
2. Interest payments by banks / Financial Institution
3. Commission / Brokerage payments
4. Rent payments
5. Asset Transfer
6. Contract services
7. Professional fees
8. Winning from games like a crossword puzzle, card, lottery, etc
HOW TO FILE TDS RETURN ONLINE
To file TDS return, you must have TAN. If you want to apply for TAN click here.
2. After obtaining TAN, get registered on traces website as Individual, LLP or a Company.
3. You must have all deductee detail (creditors/Employee/Seller) such as PAN and Invoice and section under which tax to be deducted.
4. Pay tax all deductees collectively under respective sections ex. 192, 194C, 194I, 194J etc. through Challan ITNS 281.
5. After paying tax, enter deductee details and challan details in TDS utility with respective section and file the return and upload same with NSDL.
If you are new to TDS filing, let us take care of it. call 9637692601
Due dates for filing TDS return.
| Quarter | Period | Due Date for filing |
|---|---|---|
| Quarter 1 | April 2021 to 30 June 2021 | 31 July 2021 |
| Quarter 2 | July 2021 to September 2021 | 31 Oct 2021 |
| Quarter 3 | October 2021 to December 2021 | 31 January 2022 |
| Quarter 4 | January 2022 to March 2022 | 31 May 2022 |
TDS SECTIONS AND TDS RATES
SECTION 192
Tax deducted under this section is for salary paid to employer. Tax is deducted as per income tax slab by employer. TDS is required to be deducted by the employer at the time of payment of salary income.
SECTION 192 A
This section is all about deducting tax at source on accumulated PF withdrawal i.e premature withdrawal from EPF. TDS will be applicable only then when your total provident fund withdrawal will be more than Rs. 50,000.
TDS rate for 192A is 10%
SECTION 193
TDS is deducted on interest earned from securities such as bonds and debentures. TDS needs to be deducted if interest on debentures – 5000, Bonds – 10000 and other securities no limit.
TDS rate for 193 is 10%
SECTION 194
Dividend Income earned by Individual and HUF. Tax deducted can be used as credit which will reflect in 26AS.
TDS @10% if dividend amount exceeds INR 5,000 and 20% in absence of PAN.
SECTION 194 A
Interest from other than interest from securities. Tax exemption limit for senior citizen is 50000 and 40000 for other than senior citizen.
TDS @10% applicable.
SECTION 194 B
Tax deducted on wining of lotteries, Crossword puzzles. betting. casinos
TDS @30% applicable above 10,000.
SECTION 194 BB
Tax deducted on wining of horse races.
TDS @30% applicable above 10,000
SECTION 194 C
Tax deducted on payment to contractors
TDS @1% for Individuals and HUF and 2% for other than individuals and HUF applicable above 30,000/yearly
SECTION 194 D
Tax deducted on Insurance Commission paid to domestic companies and foreign companies.
TDS @10% applicable above 15000
SECTION 194 F
TDS deducted on payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund
TDS @20% applicable
SECTION 194 H
TDS deducted on payment of Brokerage or Commission
TDS @5% applicable above 15000
SECTION 194 I
TDS deducted on payment of Rent on Plant and machinery or on Land and Building
TDS @2% applicable on plant and Machinery and 10% on Land and Building above 240000
SECTION 194 J
Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J
TDS @ 5% applicable above 50 Lakhs
SECTION 194 M
Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J
TDS @ 5% applicable above 50 Lakhs
SECTION 194 Q
TDS deducted on Payments for the purchase of goods
TDS @0.1% applicable above 50 Lakhs
DUE DATE TO DEPOSIT INCOME TAX TO INCOME TAX DEPARTMENT
After deducting tax from payment, same should be deposited on of before 7th of subsequent month through Challan 281.
For example if TDS is deducted for month January 2021, then same should be deposited before 7th February 2021. Failure to pay before due date may attract interest of 1% for every month till the payment is done.