What is TDS ?
TDS or Tax Deducted at Source is Income tax reduced for money paid at the time of making specific payments such as rent, commission, professional fees, salary, interest, earnings from lottery, betting etc. by the persons making such payments. And the persons who are receiving income liable to pay tax.
Who has to deduct Tax ?
The person who are making specified payments as mentioned below has to deduct tax.
What to do after deducting TDS ?
The person who has deducted tax at the time of making payment, has to deposit the same with government within the time limit. Here time limit is, If TDS deducted in the May month and same has to deposit with the government with in June 7TH and same for all months except for the month of March, However TDS deducted in the month of march can be deposited till 30Th April. And for TDS deducted on rent and purchase of Property, the due date is 30 days from the end of the month in which TDS is deducted.
How to deposit deducted TDS with Government ?
- Login to TIN NSDL Portal. To pay TDS online visit the website of income tax department.
- Select the Relevant challan.
- Fill the challan details.
- Confirm challan details.
- Make TDS payment
Or
- Search as pay taxes online in chrome.
- Select e-Payment of Taxes
- For TDS we have to select TDS/TCS table
- And fill the data required
Process as follows
- Here in first table we has to select whether the deductees is a company or non-company (Deductees means the persons on whom tax is deducted) if deductee is company select 0020 option , if deductee is Non-Company then select 0021 option
- In next step we have to select type of payment a) For all type of payments we have to select 200 TDS/TCS Payable by Taxpayer except for orders/notices from department. For demands/notices from government we have to select (400) TDS/TCS Regular Assesment.
In this step only we have to select Nature of Payment (i.e Under which section we are going to pay tax)
- In 3rd Step we have to select Mode of payment, here we have two options one is Net Banking and another one is Debit card mode.
- In next step we have to select TAN of deductor and assessment year (Assesment year means the Year next to the Financial Year).
- In last step we have to give address of deductor. After making validating captcha we are directed towards payment gateway of selected bank.
After depositing deducted TDS with Government, we have to file return for with in the specified time.
Specified time is that for every quarter we have to file return within completion of next month in next quarter. For example, for tax deducted and deposited in first quarter (April, May, June) we have to file return on or before 31 July.
Specified payments for which TDS must deduct while making payment
| Nature of payment | Threshold Limit (Rs) | Company/firm/co-operative society/Local Authority | Individuals/HUF | If No / invalid PAN | Non-resident other than company (income between 50L to 1 cr) | Non-resident other than company if income exceeds 1cr to 2cr | Non-resident other than company if income between 2cr and 5cr | Non-resident other than company if income exceed 5cr |
| Section-Description | IT Rate (%) From 14-May-2020 to 31-03-2021 | IT Rate (%) From 14-May-2020 to 31-03-2021 | Surcharge rate (%) | Surcharge Rate (%) | Surcharge Rate (%) | Surcharge Rate (%) | Surcharge rate (%) | |
| 192A-payment of accumulated balance due to an employee | 50000 | – | 10% | 30% | 10% | 15% | 25% | 37% |
| 193-Interest on securites | 10000 | 7.5% | 7.5% | 20% | – | – | – | – |
| 194-Dividends | 5000 | 7.5% | 7.5% | 20% | – | – | – | – |
| 194A- Interest Other than interest on securities | 40,000 | 7.5% | 7.5% | 20% | – | – | – | – |
| 194A-senior citizen | 50,000 | – | 7.5% | 20% | – | – | – | – |
| 194B- Winnings from lotteries | 10,000 | 30% | 30% | 30% | 10% | 15% | 25% | 37% |
| 194BB-Winnings from Horse Races | 10,000 | 30% | 30% | 30% | 10% | 15% | 25% | 37% |
| 194C-Payment to contractors | 1,00,000 | 1.5% | 0.75% | 20% | – | – | – | – |
| 194IC-Payment Under specified agreements | – | 7.5% | 7.5% | 20% | – | – | – | – |
| 194D-Insurance companies | 15,000 | 10% | 3.75% | 20% | – | – | – | – |
| 194DA-Payment in respect of life insurance policy | 1,00,000 | 3.75% | 3.75% | 20% | – | – | – | – |
| 194E-payment to Non-Resident Sportsmen or sport association | – | 20% | 20% | 20% | 10% | 15% | 25% | 37% |
| 194EE-Payments out of deposits under NSS | 2,500 | 7.5% | 7.5% | 20% | 10% | 15% | 25% | 37% |
| 194F-Repurchase units by MFs | – | 15% | 15% | 20% | 10% | 15% | 25% | 37% |
| 194G-Commission- Lottery | 15,000 | 3.75% | 3.75% | 20% | 10% | 15% | 25% | 37% |
| 194H-Commission/ Brokerage | 15,000 | 3.75% | 3.75% | 20% | – | – | – | – |
| 194I-Rent 194I(b)-land and building/Furniture | 2,40,000 | 7.5% | 7.5% | 20% | – | – | – | – |
| 194I(a) Plant/machinery/equipment | 2,40,000 | 1.5% | 1.5% | 20% | – | – | – | – |
| 194IA-Transfer of certain immovable property other than agriculture land | 50,00,000 | 0.75% | 0.75% | 20% | – | – | – | – |
| 194J-Fees for professional / technical Services | 30,000 | 7.5%-others 2-Engaged in business of Operation of call center | 7.5%-Others 2-Engaged in business of operation of call center | 20% | – | – | – | – |
| 194K-Payment of Dividend by Mutual Funds | 5,000 | 7.5% | 7.5% | 20% | – | – | – | – |
| 194LA-Immoveable Property | 2,50,000 | 7.5% | 7.5% | 20% | – | – | – | – |
| 194LB-Income by the way of Interest from infrastructure debt fund(non-resident) | – | 5% | 5% | 20% | 10% | 15% | 25% | 37% |
| 194LBA-Certain income from units of a business trust | – | 7.5% | 7.5% | 20% | – | – | – | – |
| 194LBA-Certain income from units of a business trust to non-resident | – | 5% | 5% | 20% | 10% | 15% | 25% | 37% |
| 194LBB-Income in respect of units of investment fund | – | 7.5% – for resident 40% -for Non-resident companies 30% for non-resident other than company | 7.5%-for residents 30%- for Non residents | 20/30/40 | 10% | 15% | 25% | 37% |
| 194LC-Income by the way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan | 5% or 4% . In case where interest is payable in respect of long-term Bond or rupee denominated bond listed on recognized stock exchange located in IFSC | 5% or 4% . In case where interest is payable in respect of long-term Bond or rupee denominated bond listed on recognized stock exchange located in IFSC | 20% | 10% | 15% | 25% | 37% | |
| 194LD-Interest on certain Bonds and govt. securites | 5% | 5% | 20% | 10% | 15% | 25% | 37% | |
| 194O- TDS on E-commerce participants | 5,00,000 (individual /HUF) | 0.75% | 0.75% | 20% | – | – | – | – |
| 195-other sums | – | Average rate as applicable | – | 30% | 10% | 15% | 25% | 37% |
| 196A-Foregin comp unit holder of MF | – | *20% * Not applicable for company | 20% | 20% | 10% | 15% | 25% | 37% |
| 196B-Income from units | – | 10% | 10% | 20% | 10% | 15% | 25% | 37% |
| 196C-Income from foreign currency bonds or GDR | – | 10% | 10% | 20% | 10% | 15% | 25% | 37% |
| 196D-Income of FIIs from Securites | – | 20% | 20% | 20% | 10% | 15% | 25% | 37% |
