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TDS Return

TDS know as a Tax deduction at source. This comes under the direct tax, as per the Income Tax Act 1961; Any Company, LLP, Firm or individual should deduct TDS before paying any amount to the payee if payment exceeds a certain threshold limit. Any payment

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What is Tax Deducted at Source (TDS)

TDS know as a Tax deduction at source. This comes under the direct tax, as per the Income Tax Act 1961; Any Company, LLP, Firm or individual should deduct TDS before paying any amount to the payee if payment exceeds a certain threshold limit. Any payment covered under these provisions shall be paid after deducting a prescribed percentage. It is controlled by the [Central Direct Tax Board] (CBDT), which is part of the Indian Revenue Service Department.

Applicability

TDS Applicability: TDS is applicable on whatever income you are generating by giving service. As per tax revenue authority many types of Services such,

  1. Salary,
  2. Interest
  3. Commission charges,
  4. Consultancy services,
  5. Professional services,
  6. House property.
  7. Contractual labor services etc.

However, Individual is not required to deduct TDS at the time of making payment to professional like lawyer and Doctors.

This is one kind of Advance Tax that is going to be deducted by service receiver (or payment maker) and deposited to government authority at periodically.

Who Deduct TDS

As per the Income-tax Act, 1961 any person Receiving the specified services and making specified payment to the service provider at the same time they have to deduct TDS amount. However, In the case of individual Or HUF has not registered under TAN they are not applicable to deduct TDS.

Rent: As per the income tax act, 1961 TDS on rent (section 194I) Threshold-   

Any premises (Company, Firm, Partnership) are paying rent exceeding yearly 1,80,000/- onwards FY 2019-20 The government Increase that amounts 2,40,000/- then they have to deduct a TDS and deposited to government.

Section

Nature of Payment

 

Threshold Rs

Individual / HUF TDS

(Rate %)

Others TDS (Rate %)

1941

Land and Building rent

2,40,000

10%

10%

  1.  

Rent of Plant / Machinery / Equipment

 

        1%

1%

1%

1941B

Individual / HUF paid rent (wef 01.06.2017)

50000/PM

1%

-

1941B

Individual / HUF paid rent (wef 01.06.2017)

1%

1%

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: If any Employees do not have PAN card the TDS rate will deduct at a higher rate of 20%.

Salary: As per income tax act, 1961 TDS on Salary (section 192B)– The government have given This is the responsibility to the Employer who has to deduct TDS on your salary payable u/s “income” under the head “salary” the average tax slab given by the government during the relevant financial year. Hereby, every employee like Company (Private or public), individual, HUF, Trust, Partnership firm, etc should be deducted and deposited to government.

The TDS deducted u/s 192B certificate that known as FORM 16, which is issued by the employer to employees.

As per government Thresholds of TDS on salary:

Age


Minimum income

Indian Resident below 60 years

Rs 2.5 lakh

Citizens aged between 60 years and below 80 years (senior citizen)

Rs 3 lakh

Citizens above 80 years (super senior citizen)

Rs 5 lakh

As per income tax slab for the onwards Financial Year 2019 -2020

Note: If any Employees do not have PAN card the TDS rate will deduct at a higher rate of 20%.


Tax Rate as per Old Regime

 

Tax Rate as per Old Regime

New Tax Rate

Up to Rs. 2.5 Lakh

No Tax

No tax

Rs. 2.5 Lakh – 5 Lakh

1%

1%

Rs. 5 Lakh – 7.5 Lakh

20%

1%

Rs. 7.5 Lakh – 10 Lakh

20%

 

1%

Rs. 10 Lakh – 12.5 Lakh

30%

1%

Rs. 12.5 Lakh– 15Lakh

1%

1%

Above Rs. 15 Lakh

1%

30%

Interest: As per Section 195A Government has declared, that amount earns by the security as such interest on Fixed deposit, interest on the loan and advances other than a bank. This is only applicable to the only resident,

Thus, this provision not applicable to non-resident In case payment made to non-resident it's covered under the TDS mechanism. Here applicability will be under section 195.

Herby, the payer/Deductor shall deduct TDS if yearly interest amount paid or credited to party exceeded 40,000/-

TDS Due date Payment and Returns: Accordance with the income tax department, That sum which u have deducted from the Employee and services provider that amount should be deposit to government. There is the due date for TDS payment and return Monthly and Quarterly basis.

TDS Payment Due date: -

Month

TDS Payment Due dates

April

7th May

May

7th June

June

7th July

July

7th August

August

7th September

September

7th October

October

7th November

November

7th December

December

7th January

January

7th February

February

7th March

March

30th April

 

TDS Return Due Dates:- A TDS return is a summarization of all the TDS amount deducted and deposited to the income tax department. The statement shows a summary (Entry) of all the deduction paid and deposited by PAN number through Challan Numbers.

Month

TDS Return Due dates

April

31st July

May

June

July

31st October

August

September

October

31st Jan

November

December

January

15th May

February

March

Interest on TDS Late payment: - Under section 201(1A) for late payment of TDS deducted and payment after the due date the government has charges interest 1.5% per month. This is calculated on a monthly basis.

Penalty for late filing of TDS return:- As per income tax rule section (234E), The deducted will be liable to pay off late fee Rs.200 per day till the date of deposit. This penalty should not be more than the filled amount.

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