TDS RETURN FILING
TDS Returns preparation and Filing Services
TDS means tax deducted at source. There are many transactions (payments and receipts) where TDS is applicable and must be applied in the scenario, failing which there is a loss for the parties involved. TDS returns are mandatory if you are a deducting TDS. TDS is a quarterly statement which must be submitted to the Income Tax department of India. It needs to have all details of TDS deducted and deposited by you for a particular Quarter.
All transactions which come under the gambit of TDS and rate of TDS
| Section | Nature of Payment | Threshold Limit of Payment | Rates | ||
| Basic Exemption Limit | |||||
| For Old regime | For New regime | ||||
| 192 | Income from Salary | Super Senior Citizen (80 Years or more) | Rs. 5,00,000 | Rs. 4,00,000 | Average rate of Tax + Health & Education Cess (Surcharge if Salary > 50 Lacs) |
| TDS as per Tax Regime selected by employee. If not selected, TDS deduction as per New Regime. | |||||
| Senior Citizen (60 Years or more) | Rs. 3,00,000 | Rs. 4,00,000 | |||
| Others | Rs. 2,50,000 | Rs. 4,00,000 | |||
| 192A | Premature Withdrawal from EPF | Rs. 50,000 | 10% | ||
| 193 | Interest on Securities (including Listed Debentures) | Rs. 10,000 | 10% | ||
| 194 | Dividend | Rs. 10,000 | 10% | ||
| 194A | *Interest (Other than on Securities) by a Banking Company/ Post Office | Senior citizen : Rs. 1,00,000 p.a. Others : Rs. 50,000 p.a. | 10% | ||
| 194A | Interest (Other than on Securities) by others | Rs. 10,000 p.a. | 10% | ||
| 194B | Winning from Lotteries & Cross Word Puzzles, Card games and other games on any sort (Other than winning from online Games) | Rs. 10,000 p.a. in respect | 30% | ||
| of a single transaction (aggregate earlier) | |||||
| 194BA | Winning From Online Games | No Limit | 30% | ||
| 194BB | Winnings from horse races | Rs. 10,000 p.a. in respect | 30% | ||
| of a single transaction (aggregate earlier) | |||||
| 194C | *Payment to contractor/sub-contractor | Rs.30,000 Single Transaction (or) | Individual/HUF : 1% | ||
| Rs. 1,00,000 Aggregate of transactions | Others : 2% | ||||
| 194D | Insurance Commision | Rs. 20,000 | Domestic Company:10% | ||
| Other than Company : 2% | |||||
| 194DA | Payment under life insurance policy (The tax shall be deducted on the amount of income comprised in insurance pay-out) | Rs.1,00,000 p.a. | 2% | ||
| 194EE | Payment under National Savings Scheme | Rs.2,500 | 10% | ||
| 194F | Payment on account of repurchase of units by Mutual Fund or Unit Trust of India | No Limit | Nil | ||
| 194G | Commission on Sale of Lottery Tickets | Rs. 20,000 | 2% | ||
| 194H | *Commission/Brokerage | Rs. 20,000 | 2% | ||
| 194-I(a) | *Rent of Plant / Machinery | Rs. 50,000 pm | 2% | ||
| 194-I(b) | *Rent of Land or building or furniture or fitting | Rs. 50,000 pm | 10% | ||
| 194-IA | Payment or transfer of immovable property (other than rural agriculture land) | Rs. 50,00,000 & above | 1% | ||
| (on the higher of amount of consideration or the stamp duty value) | |||||
| 194-IB | Rent payable by an individual or HUF not liable to tax audit | Rs.50,000 per month | 2% | ||
| 194-IC | Payment of monetary consideration under Joint Development Agreements to Resident individual/HUF | No Limit | 10% | ||
| 194J | *Fees for Professional / Technical Services / Royalty / Remuneration to director | Rs. 50,000 p.a. (Rs. 0 in case of Directors) | 2% (For Call Centre, Fees for Technical Services & Royalty in case of cinematograh films) | ||
| 10% (For Professional Services, Director remuneration and other royalty) | |||||
| 194K | Income in respect of units of Mutual funds or specified company | Rs.10,000 | 10% | ||
| 194LA | Compensation on acquisition of immovable Property | Rs. 5,00,000 | 10% | ||
| 194LBA(1) | Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its resident unit holders. | No Limit | 10% | ||
| 194LBB | Payment in respect of units of Investment funds u/s 115UB [other than income which is exempt under Section 10(23FBB)] | No Limit | 10% | ||
| 194LBC(1) | Income in respect of investment made in a securitisation trust | No Limit | 10% | ||
| 194M | Payment to resident contractors and professionals or by way of commission / brokerage (other than those who covered u/s 194C or 194J) by individual/HUF not liable for tax audit. | Rs. 50 lacs | 2% | ||
| 194N | Aggregate Cash withdrawal from Bank / Co-operative bank / Post office etc. (* by persons who have not filed ITR for 3 previous years immediately preceding the previous year and the due date for filing ITR under section 139(1) has expired) | Rs. 20 lakhs | Cash withdrawal between Rs. 20 lakhs to Rs. 1 crore : 2% | ||
| Cash withdrawal above Rs. 1 crore : 5% | |||||
| 194N | Aggregate Cash withdrawal from Bank, Post office etc. in case of others. | Rs. 1 crore | 2% | ||
| 194-O | Payment by E-commerce operator to e-commerce participants | Individual /HUF : Rs. 5 Lakh | 0.10% | ||
| Others : No limit. | |||||
| 194P | TDS deduction by bank in case of specified Senior Citizen above 75 Years drawing pension | Rs. 3,00,000 | As per Rates in force | ||
| (NOTE-1) | |||||
| 194Q | Payment for purchase of goods | 50 Lakhs | 0.1% (on the value above Rs. 50 lakhs) | ||
| 194R | Benefits or perquisites arising from business or profession | Rs. 20, 000 | 10% | ||
| 194S | Payment of Consideration for Transfer of Virtual Digital Assets of crypto currency | By Specified Persons(Not having income PGBP or less than 1Cr/50 lakh) : Rs. 50,000 | 1% | ||
| By Others : Rs. 10,000 | |||||
| 194T | TDS on payment of salary, remuneration, interest, bonus or commission by partnership firm to partners | Rs. 20,000 | 10% | ||
| 206AA | TDS rate in case of Non availability of PAN | – | Higher of- | ||
| Rates in force | |||||
| 20% | |||||
TDS is not applicable when
- Amount is paid by RBI or Government of India
- Financial Corporation of State or Centre.
- Mutual Fund u/s 10 (23D)
- Deductee has non deduction certificate U/S 192 of Income Tax Act
- Interest paid or credited to: –
- Banking company
- Co-operative society having banking business
- LIC, UTI or other insurance company
- Body notified for non-deduction of tax
- NSC, KVP or Indira Vikas Party
- NRE account
- Bank or co-operative society’s recurring Deposit or savings’ account etc.
Types of TDS returnsStatement of the following
- Form 24Q: TDS from salaries
- Form 26Q: TDS from other payments other than salaries
- Form 27Q: Tax Deduction on income received from interest, Dividends, or any other sum payable to Non-Resident
- Form 27EQ: collection of tax at source
Form 16A and Form 16 will only be generated if you have correctly filed your TDS returns
When are the TDS returns to be filed?Quarterly by the last date of month succeeding the quarter end (31st of July for Quarter April to June)Late Fees: –INR 200 per day of late filing after last date.
Penalties: –If TDS returns are not filed, then Income Tax Department can levy penalties on Deductor (minimum of INR 10,000 and Maximum of INR 1,00,000.Process of TDS Return
- Collection of Documents (documents required given below)
- TAN number
- TDS paid challans (can be generated from bank Website)
- Details of Deductions
- Excel Sheet of TDS will be prepared and then uploaded along with the PDFs of challans
- Filling up of the questionnaire of Website according to the information provided by you.
- Review and revise
- Review to generate the error free FVU and revise if needed.
- Validate for errors, Download the FVU and 27A documents,
- Upload to Income tax Department Site
Who needs to pay TDS and how to pay TDS?o Any person who is liable to deduct/collect TDS is also liable to pay TDS to the central government (The Income Tax Department)
o TDS can be paid online through Traces website and net banking way or through offline method on the counter of prescribed banks.