The Indian Income Tax Act provides for chargeability of tax on the total income of a person on an annual basis. The quantum of tax determined as per the statutory provisions is payable as:-
(a) Advance Tax
(b) Self Assessment Tax
(c) Tax Deducted at Source (TDS)
(d) Tax Collected at Source (TCS)
Tax deducted at source (TDS) and Tax collection at source (TCS), as the very names imply aim at collection of revenue at the very source of income. It is essentially an indirect method of collecting tax which combines the concepts of "pay as you earn" and "collect as it is being earned." At the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and convenient mode of payment. The deducted sum is required to be deposited to the credit of the Central Government.
TAX DEDUCTED AT SOURCE
Tax deducted at source (TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account.
TAX COLLECTED AT SOURCE
Tax collected at source (TCS) is to be collected by seller from the buyer at the time of sale of specified category of goods. The TCS rate is different for each category of goods & the TCS so collected by the seller from the buyer is to be required to be deposited with the government account.
(1) All sums deducted in accordance with the provisions of Chapter XVII?B by an office of the Government shall be paid to the credit of the Central Government.
(a) On the same day where the tax is paid without production of an income?tax challan
(b) On or before seven days from the end of the month in which the deduction is made or income?tax is due under sub?section (1A) of section 192, where tax is paid accompanied by an income?tax challan.
|Tax to be deducted/collected by Govt Office|
|1||Tax deposited without challan||Same day|
|2||Tax deposited with challan||7th of next month|
|3||Tax on perquisites opt to be deposited by the employer||7th of next month|
(2) All sums deducted in accordance with the provisions of Chapter XVII?B by dedicators other than an office of the Government shall be paid to the credit of the Central Government ?
(a) On or before 30th day of April where the income or amount is credited or paid in the month of March.
b) In any other case, on or before seven days from the end of the month in which?the deduction is made income?tax is due under sub?section (1A) of section 192.
|Tax deducted/collected by other|
|1||tax deductible in March||30th April of next year In case of TCS 7th April|
|2||other months & tax on perquisites opted to be deposited by employer||7th of next month|
3) Not withstanding anything contained in sub?rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table:?
|Sr No||Quarter ended On||Date of payment|
|1||30th June||7th July|
|2||30the September||7th October|
|3||31st December||7th January|
|4||31st March||30Th April|
Person required to file ETDS Return Filing due Dates
Following person are liable to file ETDS/ETCS return.
1. All Government department/office or
2. All companies.
3. All person required to get his accounts audited under section 44AB in the immediately preceding financial year; or
4 The number of deduce’s records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,
DUTIES OF TAX DEDUCTOR/COLLECTOR
To apply for Tax Deduction Account Number (TAN) in form 49B, in duplicate at the designated TIN facilitation centers of NSDL(please see www.incometaxindia.gov.in), within one month from the end of the month in which tax was deducted.
To quote TAN (10 digit reformatted TAN) in all TDS/TCS challans, certificates, statements and other correspondence.
To deduct/collect tax at the prescribed rates at the time of every credit or payment, whichever is earlier, in respect of all liable transactions
To remit the tax deducted/collected within the prescribed due dates by using challan no. ITNS 281 by quoting the TAN and relevant section of the Income-tax Act.
To issue TDS/TCS certificate, complete in all respects, within the prescribed time in Form No.16(TDS on salaries), 16A(other TDS) 27D( TCS).
To file TDS/TCS quarterly statements within the due date.
To mention PAN of all deductees in the TDS/TCS quarterly statements
TDS (Tax Deduction at source) RATES FOR FINANCIAL YEAR 2015-16
|SECTION||FOR PAYMENT OF||ON PAYMENT EXCEEDING||INDIVIDUAL/HUF||OTHERS|
|193||Interest on securities||Rs. 5000/-||10%||10%|
|194||Deemed Dividend||No minimum||10%||10%|
|194A||Interest other than on securities by banks||Rs. 10000/-||10%||10%|
|194 A||nterest other than on securities by others||Rs. 5000/-||10%||10%|
|194 B||Winnings from Lotteries / Puzzle / Game||Rs. 10000/-||30%||30%|
|194 BB||Winnings from Horse Race||Rs. 5000/-||30%||30%|
|194 C (1)||Payment to Contractors||Rs. 30000/- for single payment||1%||2%|
|194 C (2)||Payment to Sub-Contractors / for Advertisements||Rs. 75000/- for aggregate payment during Financial Year||1%||2%|
|194 D||Payment of Insurance Commission||Rs. 20000/-||10%||10%|
|194 EE||Payment of NSS Deposits||Rs. 2500/-||20%||NA|
|194 F||Repurchase of units by Mutual Funds / UTI||Rs. 1000/-||20%||20%|
|194 G||Commission on Sale of Lottery tickets||Rs. 1000/-||10%||10%|
|194 H||Commission or Brokerage||Rs. 5000/-||10%||10%|
|194 I||Rent of Land, Building or Furniture||Rs. 180000/-||10%||10%|
|194 I||Rent of Plant & Machinery||Rs. 180000/-||2%||2%|
|194 IA||Transfer of Immovable Property (w.e.f. 01.06.2013)||Rs. 50 lacs||1%||1%|
|194 J||Professional / technical services, royalty||Rs. 30000/-||10%||10%|
|194 J (1)||Remuneration / commission to director of the company||–||10%||10%|
|194 J (ba)||Any remuneration / fees / commission paid to a director of a company, other than those on which tax is deductible u/s 192||–||10%||10%|
|194 L||Compensation on acquisition of Capital Asset||Rs. 100000/-||10%||10%|
|194 LA||Compensation on acquisition of certain immovable property||Rs. 200000/-||10%||10%|
TCS (tax collection at source RATES FOR FINANCIAL YEAR 2015-16
|Sr No||Nature of Goods||Rates in %|
|1||Alcoholic liquor for human Consumption||1|
|3||Timber obtained under forest lease||2.5|
|4||Timber obtained by any mode other than a forest lease||2.5|
|5||Any other forest produce not being timber or tendu leaves||2.5|
|9||Mining & Quarrying||2|
|10||Minerals, being coal or lignite or iron ore||1 wef 01.07.2012|
|11||Bullion or jewellery (if the sale consideration is paid in cash exceeding INR 5 lakhs in jewellery and two lakh in case of Bullion)||1 wef 01.07.2012|
Use correct form to file TDS/TCS Returns.
Form 24Q -for salaries
Form 26Q -for non salaries
Form 27Q- for payment to NR/NRI
Form 27EQ- for TCS
Form 27A/27B -Control sheet for electronic TDS/TCS
|Various situations and Surcharge /Cess applicable on TDS/TCS|
Form 16A now(01.01.2013) shall be available through new website www.tdscpc.gov.in
Read more from links given below:
Procedure How to register at TRACES (www.tdscpc.gov.in)
How to download Form 16A form TRACES (www.tdscpc.gov.in)
|Due date ETDS return 24Q, 26Q 27Q and Form16 ,Form 16A|
|Sl. No.||Quarter ending||Etds return
(From 01.11.2011 on wards For Govt offices)
(From 01.11.2011 on wards For Govt offices)
(For other deductors)
(For other deductors)
|1||30th June||31st July||15th August||15th July||30th July|
|2||30th September||31st October||15th November||15th October||30th October|
|3||31st December||31st January||15th Feburary||15th January||30th January|
|4||31st March||15th May||30th May(31st May fo form 16)||15th May||30th May (31st May for form 16)|
1. TDS on Job work(194C) Tds on Job work has been relaxed read new definition u/s 194C.
2. TDS on Cold Storage (194C clarification)
3. TDS on Rent without service tax(194 I)(clarification 4/2008)
4. Tds on Professional service (194J) including service tax (clarification)
5. TDS on Rent (various circulars by department on tds on rent )
6. Do and Dont’s Tax deposit of Taxes
7. E-payment of TDS mandatory from 01.04.2008
8. E-Payment Auto Filler for Tds Challan
9. E-Payment From Other Banks Account Allowed
10. TDS challan ITNS 281 In excel &
11. How to Fill TDS CHALLAN-ITNS 281
12. How To pay Income Tax/Tds Online FAQ
13. Nil TDS on Transporter and others to be reported in ETDS quarterly returns
14. 1% TDS on transfer of property u/s 194IA wef 01.06.2013
15. TDS changes by Budget 2012 (detailed)
16. TCS changes by Budget 2012(detailed)
17. TDS on rent section 194-1 brief notes, circular, notification and case laws