PRESENTATION ON TDS
CONTENTS: INCOME TAX TAX DEDUCTED AT SOURCE (TDS) Obligation of TAN Role of Tax Deductor Deduction At Source from Salary Important points while deducting tax on salary Rate for Deduction At Source from Non Salary Important points while deducting tax on non salary payments TDS Deposit Due Dates TDS Return (Salary & Non Salary) Submission Date Penalty & Interest & Other Important Points
OBLIGATION OF TAN Every person who has deducted or collected the tax at source should obtain TAN. TAN should be obtained within one month from end of the month in which tax was deducted or collected.
ROLE OF THE ASSESSEE Deduct the tax from all applicable payments Deposit the TDS within the time. File the return in time. Issue the certificate in time to payees. In case of TDS made, account it properly.
Rate For Deduction At Source From Salary For resident men & women (who are below 60 years at any time during the year) Sr. No. Taxable Salary 1 Upto Rs. 2,00,000 Nil Income Tax 2 Rs.2,00,001 to Rs.5,00,000 3 Rs.5,00,001 to Rs.10,00,000 4 Rs.10,00,000 & above 10% of the amount by which the total income exceeds Rs. 2,00,000 Rs.30,000 plus 20% of the amount by which the total income exceeds Rs.5,00,000 Rs.1,30,000 plus 30% of the amount by which the total income exceeds Rs.10,00,000
IMPORTANT POINTS WHILE DEDUCTING TDS ON SALARY Following deductions should be considered while calculating taxable salary - Profession Tax - Tax saving investments declared by the employees (LIC,ULIP,NSC,Housing Loan Principle, Tution Fees of children etc) - Housing Loan Interest o Important Points to remember - A signed declaration be obtained from the employees regarding tax saving investments and other incomes made by them. - All the proofs of investments and provisional housing loan certificates be taken on record. - Add other incomes reported by employee - Issue TDS Certificate (Form 16) before 30 th May
RATE FOR DEDUCTION AT SOURCE (NON SALARY) Sr. No. Section of Act Nature of the Payment Cut Off Amount (in Rs.) Rate of TDS HUF / Individual Others Remark 1. 194C(1) Contracts 30,000 1% 2% Single bill limit 2. 194C(2) Sub-Contracts / Advertisements 30,000 1% 2% Single bill limit 3. 194C(1) Contracts 75,000 1% 2% Yearly limit 4. 194C(2) Sub-Contracts / Advertisements 5. 194I Renting (Land & Building) Renting (Equipment, P&M, Furniture & Fittings) 6. 194J Professional / Technical Charges 75,000 1% 2% Yearly limit 1,80,000 10% 10% 1,80,000 2% 2% 30,000 10% 10%
IMPORTANT POINTS WHILE DEDUCTING TAX ON NON SALARY PAYMENTS Obtain copy of PAN before deducting tax If PAN is not available with the Payee deduct tax @ 20% flat, irrespective of the type of payee. Ascertain correct rate of tax of deduction Ensure that deduction of tax is done on payment or credit in books of account whichever is earlier. Ensure that TDS certificate (Form 16A) is issued before the following dates Quarter end Date before which Form 16A is to be issued 30 th June 30 th of July 30 th Sep 30 th of Oct 31 st Dec 30 th of Jan 31 st Mar 31 st of May
TDS DEPOSIT DUE DATES Sr. No. Type of Payment Time Limit Section 1. Salary 7th day of next month. Except for March where TDS can be deposited till 30 th April 192A 2. Payment to Contractors/ Sub-Contractors/ Advertisement 7th day of next month. Except for March where TDS can be deposited till 30 th April 3. Rent 7th day of next month. Except for March where TDS can be deposited till 30 th April 194C 194I 4. Professional Fees 7th day of next month. Except for March where TDS can be deposited till 30 th April 194J
TDS RETURN (Salary & Non-salary) Submission Date Sr. No. Date of ending of the quarter Due Date 1. 30 th June 15 th July 2. 30 th September 15 th October 3. 31 st December 15 th January 4. 31 st March 15 th May of the subsequent F.Y. Eg. For the quarter ending on 31 st March 2014 due date for return filling is 15 th May 2014
PENALTY & INTEREST & OTHER IMPORTANT POINTS 1. Penalty/Fees Sr. No. Section Content Penalty/Fees 1. 234E Failure in delivering (submitting) a quarterly return within the due date Fees Rs.200/- per day not exceeding the tax amount deductible. 2. 271H(1)(a) Delayed submission of TDS return Penalty ranging from Rs.10,000/- to Rs.1lakh. 3. 271H(1)(b) Submission of wrong information in TDS statement Penalty ranging from Rs.10,000/- to Rs.1lakh. 4. 272A(2)(g) Failure to issue TDS certificate Rs.100/- per day of default subject a maximum of tax deducted. 5. 272A(2)(k) Non-submission of Quarterly statement Rs.100/- per day of default subject a maximum of tax payable. 6. 272B(1) Not intimating PAN to tax deductor Rs.10,000/- 7. 272B(2) Not quoting PAN of payee Rs.10,000/- 8. 272BB TAN not obtain Rs.10,000/- 9. 272BB(IA) Quoting false TAN Rs.10,000/-
2. Interest on delayed deposit of TDS: The interest rate is 1% p.m part thereof (& not on day basis) from the date deductible to the date deducted and 1.5% p.m. or part thereof (& not on day basis) from the date of deduction till the date of deposit. If there is delay of even one day in deposit of the TDS amount in bank/treasury then interest @1.5% will be levied on the tax amount. 3. TDS treatment of Contractual staff: It has been circulated through the Letter no. PCU/Income Tax details/325/2012 dated 28/03/2012 of PUC that payment made to contractual staff is to be treated as salary & accordingly income tax should be deducted. 4. Online Registration of TAN No.: If any defaults occur in filing of TDS return they can be viewed through login on NSDL site www.tin-nsdl.com. The TAN No. should be registered online and then login to NSDL website is available. 5. If we are purchasing only goods/material then we need not deduct TDS on it. Eg. We have purchased seeds, fertilizers, computer paper, etc. then no TDS is required.
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