Tax Deducted at Source (TDS)
- Registration of TAN
- Monthly calculations of TDS liability and preparing of challan
(Form 24Q, 26Q, 27Q, 27EQ)
- Verification of information from the NSDL website
- Quarterly TDS Return filing
- Tax Saving advice
TDS Filing Process
- Provide your details and get a call back to discuss your tax situation
- Email your tax documents to the expert upon confirmation of the service
- Pay fees to get your return diligently prepared and filed by our expert
- Monthly TDS calculation and providing with the challan
- Challan verification
- Validation of information using FVU (File Validation Utility) provided by the NSDL
- Filing TDS return for one quarter
- Get experts to address your questions
Frequently Asked Questions
Find answers to the most frequently asked questions on the Tax Deducted at Source in India.
TDS is the amount of tax deducted by the buyer when he makes any payment to any vendor. The responsibility of depositing the TDS amount is with the person deducting TDS. This TDS is deposited in the government account by filling up a challan for the same.
Apart from this as a deductor of TDS you also need to file a return of TDS on a quarterly basis with the income tax department. Submitting this return is mandatory by a deductor. The common elements of a TDS return are PAN of both deductor and the deductee, amount of tax paid, quarter to which it relates, rate applicable, TDS challan and such other details.
Anyone who deducts TDS are supposed to file a TDS Return. However, some of them have to mandatorily e-file TDS Return. Section 206 makes it mandatory to e-file TDS Return for the following assesses:
i. All corporate deductors or collectors
ii. All government deductors or collectors
iii. Where the deductor or collector is required to get his accounts audited under section 44AB in the immediately preceding Financial Year
iv. Where the number of deductees or collectees records in a quarterly statement for one quarter of the immediately preceding Financial Year is equal to or more than 20 any other assessee has the option to either file e-return or physical return.
Depending on the nature of income on which TDS is deducted or nature of deductee 4 different return forms have been prescribed by the tax department.
|Nature of income or deductee||Form to be filed|
|TDS on salary||Form 24Q|
|TDS where deductee is a non-resident, foreign company||Form 27Q|
|TDS on payment for transfer of any immovable||Form 26QB|
|TDS in any other case||Form 26Q|
TDS is calculated on the basis of an income threshold limit which is exempt from TDS. Any income beyond applicable threshold limit is eligible for TDS deduction. TDS is deducted as a percentage of overall payment, and may range from 1% to 30% of actual payable amount.
|Under Section||Applicable TDS Rate||Exempt up to*|
|192||As per income tax slab||As per income tax slab|
|193||10% of income from interests on securities||NIL|
|194||10% of income from deemed dividends||NIL|
|194A||10% of income from interests other than those on securities||Rs. 5,000|
|194B||30% of lottery or game-related winnings||Rs. 10,000|
|194BB||30% of income from horse racing||Rs. 5,000|
|194C||1% of earning from contracts or sub contracts for individuals and HUF (Hindu Unified Families) 2% for corporates||Rs. 30,000|
|194D||10% of income from insurance commissions||Rs. 20,000|
|194EE||20% of payment in NSS deposits||Rs. 2,500|
|194F||20% of payment made for repurchase of UTI or MF units||NIL|
|194G||10% of commission earned from selling lottery tickets||Rs. 1,000|
|194H||10% of commission or brokerage earnings||Rs. 5,000|
|194I||2% of rent of plant and machinery 10% of rent of land, building, fitting, or furniture||Rs. 1.8 lakhs|
|194J||10% of fees for technical or professional services||NIL|
|194L||10% of compensation payment made to a resident when acquisitioning some immovable property||Rs. 1 lakh|
The due dates for filing TDS return are explained in the table given below:
Late payment or non-payment of TDS as well as non-filing or late filing of TDS return can attract interest penalty and prosecution under various sections of Income Tax Act.
i. If the deductor fails to deduct tax then he becomes liable to pay 1% interest p.m. on the deductible amount
ii. If the deductor deducts TDS but fails to deposit it then he becomes liable to pay interest @ 1.5% p.m. on the deductible amount.
iii. In case of failure in depositing TDS on time, deductor becomes liable to pay a late payment fee of Rs. 200 per day till the amount is deposited with the government.
iv. Deductor can also be prosecuted for failing to deposit TDS with the government within the due date. He can be punished with rigourous imprisonment with a term period anywhere between 3 months to 7 years.
v. If the deductor fails to file TDS return, taxman can impose a penalty anywhere from Rs. 10,000 to Rs. 1,00,000 on him.
You can make payment of any TDS by using e-payment facility of the tax department. Follow the following steps to deposit TDS online.
i. Go to https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp and login.
ii. Select relevant challan online as applicable in your case.
iii. Enter valid PAN or TAN as applicable.
iv. If the PAN or TAN is found to be valid, you will be allowed to enter other challan details like accounting head under which payment is made, name and address of TAN, selection of bank through which payment will be made, etc.
v. Post this, you will be asked to confirm the details entered. After confirmation, you will be directed to the net-banking site of the bank chosen by you for making payment.
vi. After you make successful payment of TDS, a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. Take printout of the counterfoil and keep it safely with you as it acts as a proof of payment made by you.