Tax Deducted at Source (TDS): FAQs

  • TG Team
  • | Income Tax - Articles- Featured
  • 11 May 2020
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In this Article we have discussed about payments covered under the TDS mechanism and TDS rates, minimum amount upto which TDS is not deductible, Non deduction of TDS on request of deductee, Consequence of non deduction and Payment of TDS, when deductor will not be in-default despite non-deduction of TDS, due dates for filing of TDS Return, furnishing of TDS certificate, Applicability of TDS on Various Types of Payment, TDS in case of non-furnishing of PAN, Non reflection of TDS in form 26AS, Non-receipt of TDS Certificate, TDS on Land & Building Purchase and other related issues.

Q.1 What is tax deducted at source?

Ans: For quick and efficient collection of taxes, the Income-tax Law has incorporated a system of deduction of tax at the point of generation of income. This system is called as “Tax Deducted at Source”, commonly known as TDS. Under this system tax is deducted at the origin of the income. Tax is deducted by the payer and is remitted to the Government by the payer on behalf of the payee.

The provisions of deduction of tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. In respect of payments to which the TDS provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the Government.

Q.2 What are the payments covered under the TDS mechanism and the rates for deduction of tax at source?

Ans: Tax is deductible at source at the rates given in table (infra). If PAN of the deductee is not intimated to the deductor, tax will be deducted at source by virtue of section 206AA either at the rate given in the table or at the rate or rates in force or at the rate of 20 per cent, whichever is higher. Further, under section 94A(5), if payment or credit is made or given to a deductee who is located in a notified jurisdictional area, tax is deductible at the rate given in the table or at the rate of 30 per cent, whichever is higher. TDS rates for the financial year 2020-21 are as follows—

CATEGORY A – WHEN RECIPIENT IS RESIDENT
Nature of payment TDS (SC : Nil, EC : Nil, SHEC : Nil)
Sec. 192 – Payment of salary Normal or Special Tax Rate plus surcharge and education cess Surcharge: 10% (if total income exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 crore), 15% (If total income exceeds Rs. 1 crore but doesn’t exceed Rs. 2 crore), 25% (If total income exceeds Rs. 2 crore but doesn’t exceed Rs. 5 crore), 37% (If total income exceeds Rs. 5 crore)
HEC : 4%
Sec. 192A – Payment of taxable accumulated balance of provident fund 10
Sec. 193 – Interest on securities—

a. interest on (a) debentures/securities for money issued by or on behalf of any local authority/statutory corporation, (b) listed debentures of a company [not being listed securities in demat form], (c) any security of the Central or State Government [i.e., 8% Savings (taxable) Bonds, 2003 or 7.75% savings (Taxable) Bonds, 2018, but not any other Government security]

 10

b. any other interest on securities (including interest on non-listed debentures)

 10
Sec. 194 – Dividend— 10
Sec. 194A – Interest other than interest on securities 10
Sec. 194B – Winnings from lottery or crossword puzzle or card game or other game of any sort 30
Sec. 194BB – Winnings from horse races 30
Sec. 194C – Payment or credit to a resident contractor/sub-contractor—

a. payment/credit to an individual or a Hindu undivided family

 1

b. payment/credit to any person other than an individual or a Hindu undivided family

 2
Sec. 194D – Insurance commission 10

– if recipient is a resident (other than a company)

 5

– if recipient is a domestic company

 10
Sec. 194DA – Payment in respect of life insurance policy 1
Sec. 194EE – Payment in respect of deposits under National Savings Scheme, 1987 10
Sec. 194F – Payment on account of repurchase of units of MF or UTI 20
Sec. 194G – Commission on sale of lottery tickets 5
Sec. 194H – Commission or brokerage 5
Sec. 194-I – Rent—

a. rent of plant and machinery

 2

b. rent of land or building or furniture or fitting

 10
Sec. 194-IA – Payment/credit of consideration to a resident transferor for transfer of any immovable property (other than rural agricultural land) 1
Sec. 194-IB – Payment of rent by an individual or HUF not subjected to tax audit under Section 44AB 5
Sec. 194-IC – Payment under Joint Development Agreement to a resident individual or HUF who transfers land or building as per such agreement 10
Sec. 194J – Fees for professional or technical services.

Note: 2% if payee is engaged in the business of operation of call center

 10

i. sum paid or payable towards fees for technical services

 2

ii. sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films;

 2

iii. Any other sum

 10
Note: 2% if payee is engaged in the business of operation of call center
Sec. 194LA – Payment of compensation on acquisition of certain immovable property 10
Sec. 194LBA(1) – Payment of the nature referred to in section 10(23FC) or section 10(23FC)(a) or section 10(23FCA) by business trust to resident unit holders 10
Sec. 194LBB – Payment in respect of units of investment fund specified in section 115UB 10
Sec. 194LBC(1) – Payment in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA (with effect from June 1, 2016) –
section 194M – Payment of contractual work, commission (not being insurance commission referred to in section 194D), brokerage or professional fees, by an individual or a HUF not covered under section 194C, section 194H and 194J 5
section 194N – Payment in cash by banking company or co-op. bank or post office 2/5
section 194K – Income in respect of units payable to resident 10
section 194K – Income in respect of units payable to resident 10

CATEGORY B – WHEN RECIPIENT IS NON-RESIDENT OR FOREIGN COMPANY

Aggregate payment or credit subject to TDS during the financial year 2020-21
If recipient is non-resident Individual/ HUF/ AOP/ BOI/ Artificial juridical person
If recipient is non-resident co-operative society/ firm
If recipient is non-domestic company
Rs.50 lakh or less
More than Rs. 50 lakh but not more than Rs. 1 crore
More than Rs. 1 crore
Rs. 1 crore or less
More than Rs. 1 crore
Rs. 1 crore or less
More than Rs. 1 crore but not more than Rs. 10 crore
More than Rs. 10 crore
Nature of payment
TDS (inclusive of SC: Nil, Health & Education cess: 4%)
TDS (inclu-sive of SC: 10%, Health & Educat-ion cess: 4%)
TDS (inclu-sive of SC: 15%, Health & Educa-tion cess: 4%)
TDS (inclu-sive of SC: Nil, Health & Educa-tion cess: 4%)
TDS (inclu-sive of SC: 12%, Health & Educa-tion cess: 4%)
TDS (inclu-sive of SC: Nil, Health & Educat-ion cess: 4%)
TDS (inclus-ive of SC: 2%, Health & Educat-ion cess: 4%)
TDS (inclu-sive of SC: 5%, Health & Educat-ion cess: 4%)
Sec. 192 – Payment of salary
Normal/Special Tax Rate
Normal Tax Rate plus SC, EC and SHEC
Normal Tax Rate plus SC, EC and SHEC
–
–
–
–
–
Sec. 192A- Payment of taxable accumulated balance of provident fund
10.4
11.44
11.96
–
–
–
–
–
Sec. 194B – Winnings from lottery or crossword puzzle or card game or other game of any sort
31.2
34.32
35.88
31.2
34.944
31.2
31.824
32.76
Sec. 194BB – Winnings from horse races
31.2
34.32
35.88
31.2
34.944
31.2
31.824
32.76
Sec. 194E – Payment to a non-resident foreign citizen sportsman / entertainer or non-resident sports association
20.8
22.88
23.92
20.8
23.296
20.8
21.216
21.84
Sec. 194EE – Payment in respect of deposits under National Saving Scheme, 1987
10.4
11.44
11.96
NA
NA
NA
NA
NA
Sec. 194F – Re-purchase of units of MF or UTI
20.8
22.88
23.92
NA
NA
NA
NA
NA
Sec. 194G – Commission on sale of lottery tickets
5.2
5.72
5.98
5.2
5.824
5.2
5.304
5.46
Sec. 194LB – Payment/ credit by way of interest by infrastructure debt fund
5.2
5.72
5.98
5.2
5.824
5.2
5.302
5.46
Sec. 194LBA(2) – Payment of the nature referred to in Section 10(23FC)(a)
5.2
5.72
5.98
5.2
5.824
5.2
5.304
5.46
Sec. 194LBA(2) – Payment of the nature referred to in Section 10(23FC)(b)
10.4
11.44
11.96
10.4
11.65
10.4
10.61
10.92
Sec. 194LBA(3) – Payment of the nature referred to in section 10(23FCA) by business trust to unit holders
31.2
or
20.8*
* In case of distribution of dividend received from specified domestic company.
34.32
22.88
35.88
23.92
31.2
20.8
34.944
23.30
41.6
20.8
42.432
21.22
43.68
21.84
Sec. 194LBB – Payment in respect of units of investment fund specified in Sec. 115UB
31.2
or
20.8*
* In case of distribution of dividend received from specified domestic company.
34.32
22.88
35.88
23.92
31.2
20.8
34.944
23.30
41.6
23.8
42.432
21.22
43.68
21.84
Sec. 194LBC(2) – Payment in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA (with effect from June 1, 2016)
31.2
34.32
35.88
31.2
34.944
41.6
42.432
43.68
Sec. 194LC – Payment/ credit of interest by an Indian specified company on foreign currency approved loan/ long-term infrastructure bonds (with effect from October 1, 2014, any bond) from outside India
5.2
or
4.16*
* In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC
5.72
4.58
5.98
4.78
5.2
4.16
5.824
4.66
5.2
4.16
5.304
4.24
5.46
4.37
Sec. 194LD – Interest on a rupee denominated bond of an Indian company or Government security (from June 1, 2013)
5.2
5.72
5.98
5.2
5.824
5.2
5.304
5.46
Sec. 195 – Payment/ credit of other sum to a non-resident —
a. income of foreign exchange assets payable to an Indian citizen
20.8
22.88
23.92
NA
NA
NA
NA
NA
b. income by way of long-term capital gains referred to in section 115E or section 112(1)(c)(iii)
10.4
11.44
11.96
10.4
11.648
10.4
10.608
10.92
c. income by way of long-term capital gains referred to in section 112A
10.4
11.44
11.96
10.4
11.648
10.4
10.608
10.92
d. short-term capital gains under Sec. 111A
15.6
17.16
17.94
15.6
17.472
15.6
15.912
16.38
e. any other long-term capital gains [not being covered by Section 10(33), 10(36) and 112A]
20.8
22.88
23.92
20.8
23.296
20.8
21.216
21.84
f. income by way of interest payable by Government/ Indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency (not being interest referred to in Sec. 194LB or Sec. 194LC
20.8
22.88
23.92
20.8
23.296
20.8
21.216
21.84
g. royalty [see Note 5]
10.4
11.44
11.96
10.4
11.648
10.4
10.608
10.92
h. royalty [not being royalty of the nature referred to in (f) supra] [see Note 6] –
-where the agreement is made after March 31, 1961 but before April 1, 1976
10.4
11.44
11.96
10.4
11.648
52
53.04
54.6
-where the agreement is made on or after April 1, 1976
10.4
11.44
11.96
10.4
11.648
10.4
10.608
10.92
i. fees for technical services [see Note 7] –
-where the agreement is made after February 29, 1964 but before April 1, 1976
10.4
11.44
11.96
10.4
11.648
51.52
53.04
54.6
-where the agreement is made on or after April 1, 1976
10.4
11.44
11.96
10.4
11.648
10.4
10.608
10.92
j. any other income
31.2
34.32
35.88
31.2
34.944
41.6
42.432
43.68
Sec. 196B – Payment/ credit of income from units (including long-term capital gains on transfer of such units) to an offshore fund
10.4
11.44
11.96
10.4
11.648
10.4
10.608
10.92
Sec. 196C – Payment/credit of interest of foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds)
10.4
11.44
11.96
10.4
11.648
10.4
10.608
10.92
Sec. 196D – Payment/ credit of income from securities (not being dividend, short-term or long-term capital gain) to Foreign Institutional Investors
20.8
22.88
23.92
20.8
23.296
20.8
21.216
21.84

Notes :

1. Under sections 192 tax is deductible from salary. The payer shall calculate salary taxable in the hands of recipient. The amount so determined is subject to tax deduction under sections 192. Under sections 192A, tax is deductible on taxable accumulated balance of provident fund. Under section 195, tax is deductible only if income is taxable in the hands of recipient in India. In any other case, gross payment or credit (without GST, if GST is shown separately) is subject to tax deduction.

2. In Category B, tax is deductible at the above rates or the rates specified in ADT agreements entered into by the Central Government under section 90(whichever is lower) [ section 2(37A)(iii)].

3. Tax is not deductible under section 192A, section 193, 194, 194A, with effect from 1/6/2017 194D, 194DA, 194-I, or 194EE if the recipient makes a declaration in Form No. 15G/15H under the provisions of section 197A.

4. Under section 197 the recipient can apply the Assessing Officer in Form No. 13 to get a certificate of lower/no tax deduction. This benefit is, however, not available if tax is deductible under section 192A, section 194B, 194BB, 194E, 194EE, 194F, 194-IA, 194LBA, 194LB, 194LC, 196B, 196C or196D.

5. Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern after March 31, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to section 115A(1A)to the Indian concern or in respect of computer software referred to in the second proviso to section 115A(1A), to a person resident in India.

6. Not being royalty of the nature referred to above, payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy.

7. Fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy.

Q.3 Is there any minimum amount upto which tax is not deducted?

Ans: The Income-tax Act has prescribed a different threshold limit for deduction of tax at source under various sections. If the expenditure incurred/payment made during the year is below the threshold limit, then there is no requirement to deduct tax at source.

The threshold limit for deduction of tax at source under various sections is as follows:

S. No. Particulars Section Threshold limit
1. No deduction of tax at source from salaries 192 If net taxable income is less than the maximum amount which is not chargeable to tax (i.e. Rs. 2,50,000 for an individual other than senior citizen, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens)
1A. No TDS from payment of accumulated balance of provident fund account due to an employee 192A If taxable premature withdrawal amount is less than Rs. 50,000.
2. No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provided interest is paid by account payee cheque to resident individual or HUF 193 If amount of interest paid during the financial year does not exceed Rs. 5,000
3. No TDS from interest paid on 8% Saving (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds, 2018 (applicable from A.Y 2019-20) to resident persons 193 If amount of interest paid or likely to be paid during the financial year does not exceed Rs. 10,000
3A. No TDS from interest on 6.5% Gold bonds, 1977 or 7% Gold bonds, 1980 paid to resident individual 193 If bonds held by other than non-resident individual (or behalf of any other person) and makes declaration to the payer that the nominal value of such bonds does not exceed Rs. 10,000 at any time during the period to which interest relates.
4. No TDS from dividend paid by Indian company by an account payee cheque to individual 194 If aggregate amount of dividend paid or credited during the financial year does not exceed Rs. 5000.
5. No TDS from interest other than on securities paid by a banking company or co-operative society engaged in carrying on the business of banking 194A If amount of interest paid or credited on time deposit during the financial year exceeds Rs 10,000 (*) (for all type of payee)/Rs 50,000 (from 01/04/2018 if payee is resident senior citizen)
(*) w.e.f. 01/04/2019, the threshold limit is increased from Rs. 10,000 to Rs. 40,000.
6. No TDS from interest on any deposit with a post office under Senior Citizens Saving Scheme Rules, 2004( Notified scheme) 194A If amount of interest paid or credited on time deposit during the financial year exceeds Rs 10,000 (*) (for all type of payee)/Rs 50,000 (from 01/04/2018 if payee is resident senior citizen)
(*) w.e.f. 01/04/2019, the threshold limit is increased from Rs. 10,000 to Rs. 40,000.
7. No TDS from interest other than on securities if payer is any other person other than post office or banking company or co-operative society engaged on the banking. 194A If amount of interest paid or credited on time deposit during the financial year exceeds Rs 5,000.
8. No TDS from Lottery / Cross Word Puzzles 194B If amount paid during the financial year does not exceed Rs. 10,000.
9. No TDS from winnings from horse races 194BB If amount paid during the financial year does not exceed Rs. 10,000.
10. No TDS to contractor to resident person 194C a) If sum paid/credited to a contractor in a single payment does not exceed Rs. 30,000

b) If sum paid/credited to contractor in aggregate does not exceed Rs. 1,00,000 during the financial year (Rs. 1,00,000 w.e.f. 01/06/2016)
11. No TDS from insurance commission paid or payable during the financial year to resident person 194D If amount paid or credited during the financial year does not exceed Rs. 15,000
12 No TDS from sum payable under a life insurance policy (including bonus) to a resident person (w.e.f. 01-10-2014) 194DA If amount paid or payable during the financial year is less than Rs. 1 lakh.
13. No TDS from payments made out of deposits under NSS 194EE If amount of payment or aggregate amount of payments in financial year is less than Rs. 2,500. In case of payment is received by legal heirs no tax shall be deducted.
14. No TDS from commission paid on sale of lottery tickets 194G If amount of income the financial year does not exceed Rs. 15,000
15. No TDS from payment of commission or brokerage 194H If amount paid or credited during the financial year does not exceed Rs. 5,000 (Rs. 15,000 w.e.f. 01/06/2016). Further no tax to be deducted from commission payable by BSNL/ MTNL to their Public call office franchisees.
16. No TDS on payment of rent in respect of any land or building, furniture or fittings or plant and machinery to a resident person 194-I If amount paid or credited during the financial year does not exceed Rs. 1,80,000 (Rs. 2,40,000 w.e.f. 01/04/2019).

No tax deductions shall be made under this section if rent is paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in section 10(23FCA), owned directly by such business trust.
17. No TDS on payment of consideration for purchase of an immovable property(other than agriculture land) to a resident transferor 194-IA If consideration paid or payable for transfer of an immovable property is less than Rs. 50 Lakhs.
17A. No TDS on payment of rent of any land or building or both by an individual/HUF [whose books of account are not required to be audited under section 44AB to resident person. 194-IB If amount of rent does not exceed Rs. 50,000 for a month or part of a month.
18. No TDS on payment of fee for professional services, fee for technical services, royalty, any sum referred to in section 28(va) to a resident person 194J If amount paid or credited during the financial year does not exceed Rs. 30,000

.
19. No TDS from income in respect of units payable to resident 194K If the amount of income paid or payable exceeds Rs. 5,000 during the financial year

.
20. No TDS on payment of compensation/enhanced compensation on compulsory acquisition of immovable property (other than Agricultural Land) to a resident person 194LA If such sum amount does not exceed Rs. 2,50,000 during a financial year.
21. No TDS is required to be deducted on sum payable to a person with respect to contractual work, commission, brokerage or for professional services 194M If the aggregate amount paid or credited during the financial year does not exceed Rs. 50 lakhs
22. No TDS is required to be deducted on the amount withdrawn in cash from any account 194N If the aggregate amount withdrawn does not exceed Rs. 1 crore during the previous year.
However, the threshold limit shall be Rs. 20 lakh if the person, has not filed return of income (ITR) for three previous years immediately preceding the previous year in which cash is withdrawn, and the due date for filing ITR under section 139(1) has expired.
23. No TDS from payment to participants of e-commerce 194O If amount paid or payable Resident Individual or HUF during the financial year does not exceed Rs. 5 Lakhs

Q.4 Can the payee request the payer not to deduct tax at source and to pay the amount without deduction of tax at source?

Ans: A payee can approach to the payer for non-deduction of tax at source but for that they have to furnish a declaration in Form No. 15G/15H, as the case may be, to the payer to the effect that the tax on his estimated total income of the previous year after including the income on which tax is to be deducted will be nil.

Form No. 15G is for the individual or a person (other than company or firm) and Form No. 15H is for the senior citizens.

Note: The CBDT vide Order u/s 119, dated 03-04-2020 has clarified that if a person had submitted Form 15G and 15H for FY 2019-20 to banks and other institutions then these forms will be valid up to 30.06.2020 for FY 2020-21 also.

Q.5 What are the consequences a deductor would face if he fails to deduct TDS or after deducting the same fails to deposit it to the Government’s account?

Ans: A deductor would face the following consequences if he fails to deduct TDS or after deducting the same fails to deposit it to the credit of Central Government’s account:-

a) Disallowance of expenditure

As per section 40(a)(i) of the Income-tax Act, any sum (other than salary) payable outside India or to a non-resident, which is chargeable to tax in India in the hands of the recipient, shall not be allowed to be deducted if it is paid without deduction of tax at source or if tax is deducted but is not deposited with the Central Government till the due date of filing of return.

However, if tax is deducted or deposited in subsequent year, as the case may be, the expenditure shall be allowed as deduction in that year.

Similarly, as per section 40(a)(ia), any sum payable to a resident, which is subject to deduction of tax at source, would attract 30% disallowance if it is paid without deduction of tax at source or if tax is deducted but is not deposited with the Central Government till the due date of filing of return.

However, where in respect of any such sum, tax is deducted or deposited in subsequent year, as the case may be, the expenditure so disallowed shall be allowed as deduction in that year.

As per Section 58(1A) (as amended with effect from the assessment year 2018-19), the provisions of section 40(a)(ia) and 40(a)(iia) shall also apply in computing the income chargeable under the head “Income from other sources”.

b) Levy of interest

As per section 201 of the Income-tax Act, if a deductor fails to deduct tax at source or after the deducting the same fails to deposit it to the Government’s account then he shall be deemed to be an assessee-in-default and liable to pay simple interest as follows:-

(i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and

(ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.

c) Levy of Penalty

Penalty of an amount equal to tax not deducted or paid could be imposed under section 271C.

Note: The CBDT vide the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 31-03-2020 has extended all respective due dates, falling during the period from 20-03-2020 to 29-06-2020, till June 30, 2020.

The benefit of extended due date shall not be available in respect of payment of tax. However, any delay in payment of tax which is due for payment from 20-03-2020 to 29-06-2020 shall attract interest at the lower rate of 0.75% for every month or part thereof if same is paid after the due date but on or before 30-06-2020.

Q.6 Under what circumstances a deductor would not be deemed as an assessee-in-default even after he fails to deduct TDS or after deducting the same fails to deposit it to the Government’s account?

Ans: A deductor who fails to deduct the whole or any part of the tax on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee-in-default in respect of such tax if such resident—

(i) has furnished his return of income under section 139;

(ii) has taken into account such sum for computing income in such return of income; and

(iii) has paid the tax due on the income declared by him in such return of income,

and the deductor furnishes a certificate to this effect in Form No.26A from a chartered accountant.

Q.7 However, w.e.f. 01-09-2019, sum paid to non-resident will be covered by above provisions.

Ans: In such a case, the payee can claim the refund of entire/excess amount of TDS (as the case may be) by filing the return of income.

If the payer does not deduct tax at source, will the payee face any adverse consequences by means of action taken by the Income-tax Department?

It is the duty and responsibility of the payer to deduct tax at source. If the payer fails to deduct tax at source, then the payee will not have to face any adverse consequences. However, in such a case, the payee will have to discharge his tax liability. Thus, failure of the payer to deduct tax at source will not relieve the payee from payment of tax on his income.

Q.8 What are the duties of the person deducting tax at source?

Ans: Following are the basic duties of the person who is liable to deduct tax at source.

  • He shall obtain Tax Deduction Account Number and quote the same in all the documents pertaining to TDS.
  • He shall deduct the tax at source at the applicable rate.
  • He shall pay the tax deducted by him at source to the credit of the Government (by the due date specified in this regard*).
  • He shall file the periodic TDS statements, i.e., TDS return (by the due date specified in this regard*).
  • He shall issue the TDS certificate to the payee in respect of tax deducted by him (by the due date specified in this regard*).

*Refer tax calendar for the due dates.

Q.9 How can I know the quantum of tax deducted from my income by the payer?

Ans: To know the quantum of the tax deducted by the payer, you can ask the payer to furnish you a TDS certificate in respect of tax deducted by him. You can also check Form 26AS from your e-filing account at https://incometaxindiaefiling.gov.in

You can also use the “View Your Tax Credit” facility available at www.incometaxindia.gov.in

Q.10 What to do if the TDS credit is not reflected in Form 26AS?

Ans: Non-reflection of TDS credit in Form 26AS can be due to several reasons like non-filing of TDS statement by the payer, quoting incorrect PAN of the deductee in the TDS statement filed by the payer. Thus, in case of non-reflection of TDS credit in Form 26AS, the payee has to contact the payer for ascertaining the correct reasons for non-reflection of the TDS credit in Form 26AS.

Q.11 At what rate the payer will deduct tax if I do not furnish my Permanent Account Number to him?

Ans: As per section 206AA, if you do not furnish your Permanent Account Number to the payer (i.e., deductor), then the deductor shall deduct tax at the higher of the following rates :

  • At the rate specified in the relevant provision of the Act.
  • At the rate or rates in force, i.e., the rate prescribed in the Finance Act.
  • At the rate of 20%.

Q.12 However, the provisions of section 206AA shall not apply in the following cases:-

Ans: 1. In respect of payment of interest on long-term bonds to a non-resident under section 194LC.

2. Where deductee being a non-resident or a foreign company, shall in respect of payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset, furnish the following details and documents to the deductor, namely:—

i. name, e-mail id, contact number;

ii. address in the country or specified territory outside India of which the deductee is a resident;

iii. a certificate of his being resident in any country or specified territory outside India from the Government of that country or specified territory if the law of that country or specified territory provides for issuance of such certificate;

iv. Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.

Q.13 I do not have PAN. Can I furnish Form 15G/15H for non-deduction of TDS from interest?

Ans: As per section 206AA, a declaration in Form No. 15G or Form No. 15H is not a valid declaration, if it does not contain PAN of the person making the declaration. If the declaration is without the PAN, then tax is to be deducted at higher of following rates :

  • At the rate specified in the relevant provision of the Act.
  • At the rate or rates in force, i.e., the rate prescribed in the Finance Act.
  • At the rate of 20%.

Q.14 Would I face any adverse consequences if instead of depositing TDS in the government’s account I use it for my personal needs?

Ans: Yes, failure to remit tax deducted by me in the government’s account within stipulated time-limit would attract interest, penalty and rigorous imprisonment of upto seven years.

Q.15 I have not received TDS certificate from the deductor. Can I claim TDS in my return of income?

Ans: Yes, the tax credit in your case will be reflected in your Form 26AS and, hence, you can check Form 26AS and claim the credit of the tax accordingly. However, the claim of TDS to be made in your return of income should be strictly as per the TDS credit being reflected in Form 26AS. If there is any discrepancy in the tax actually deducted and the tax credit being reflected in Form 26AS then you should intimate the same to the deductor and should reconcile the difference. The credit granted by the Income-tax Department will be as per Form 26AS.

Q.16 If I buy any land/building then is there any requirement to deduct tax from the sale proceeds to be paid by me to the seller?

Ans: Yes, Finance Act, 2013 has introduced section 194-IA which provides for deduction of tax at source in case of payment of sale consideration of immovable property (other than rural agricultural land) to a resident. Section 194-IA is not applicable if the seller is a non-resident. Tax is to be deducted @ 1%. No tax is to be deducted if the consideration is below Rs. 50,00,000. If the sale consideration exceeds Rs. 50,00,000, then tax is to be deducted on the entire amount and not only on the amount exceeding Rs. 50,00,000.

If the seller is a non-resident then tax is be deducted under section 195 and not under section 194-IA. Thus, in case of purchase of property from non-resident TDS provisions of section 195 will apply and not of section 194-IA

Q.17 What is the difference between PAN and TAN?

Ans: PAN stands for Permanent Account Number and TAN stands for Tax Deduction Account Number. TAN is to be obtained by the person responsible to deduct tax, i.e., the deductor. In all the documents relating to TDS and all the correspondence with the Income-tax Department relating to TDS one has to quote his TAN.

PAN cannot be used for TAN, hence, the deductor has to obtain TAN, even if he holds PAN.

However, in case of TDS on purchase of land and building (as per section 194-IA) as discussed in previous FAQ, the deductor is not required to obtain TAN and can use PAN for remitting the TDS.

Further in case of TDS on rent (as per section 194-IB) and TDS on payment of certain sums by Individuals of HUFs (as per section 194M), the deductor can use PAN instead of TAN for remiiting TDS

Q.18 FAQs from TDS – Centralized Processing Cell

Ans: To see the FAQs from TDS – Centralized Processing Cell, please visit at http://contents.tdscpc.gov.in/en/top-faq.html

Q.19 What is the amount of TDS if property belongs to NRI?

Ans: Yes, as per the rates prescribed u/s 195. TDS is to be deducted on capital gain income. In case you have any doubt regarding the amount on which TDS is to be made, you may file an application with the officer handling non-resident taxation who will pass an order determining the TDS to be made. Alternatively, if the recipient feels that the TDS is more he may file an application with his Assessing Officer for non-deduction.

Q.20 Whether limit of Rs. 50,000 per month under section 194-IB is applicable to each of the co-owners separately in case rent is paid individually to co-owners?

Ans: As per the section 194IB, an individual or HUF whose books of account are not liable for audit u/s 44AB, paying rent to a resident exceeding Rs. 50,000 per month or part of the month for land or building, liable to deduct tax @ 5% at the time of credit of rent, for the last month of the previous year or last month of the tenancy in case property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by cheque or draft or any other mode, whichever is earlier.

Therefore, limit of Rs. 50,000 is applicable for each co-owner separately, if rent is paid to co-owners of the property.

For Example: Mr. A is making payment of rent of Rs. 1,00,000 per month to Mr. B &Mr. C who are co-owners of the property, where in rent paid to Mr. B is Rs. 70,000 and to Mr. C is Rs. 30,000 ; A is liable to deduct tax @ 5% under section 194IB on rent paid to Mr. B as the amount of rent paid exceeds Rs. 50,000 and is not required to deduct tax on rent paid to Mr. C as the amount of rent paid does not exceed Rs. 50,000.

Q.21 Who is required to file Form 15CA ?

Ans: As per Rule 37BB, any person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable to tax under the provisions of Income tax Act, 1961, shall furnish such information in Form 15CA and Form 15CB:

In case the payment or the aggregate of such payments made during the financial year does not exceed Rs. 5 lakh rupees, such information is to be furnished in Part A of Form No.15CA.

In case the payment exceeds Rs. 5 lakh such information is required to be furnished in Part B of Form No. 15CA after obtaining a certificate from the Assessing Officer under section 197; or an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195.

In case the payment exceeds Rs. 5 lakh such information is required to be furnished in Part C of Form 15CA after obtaining certificate in Form No.15CB from an accountant as defined in the Explanation to sub-section (2) of section 288.

In case the payment other than the payment referred in sub-rule (3) of Rule 37BB which is not chargeable to tax under the provisions of Income tax Act,1961, such information is required to be furnished in Part D of Form No. 15CA.

Q.22 When Form 15CA is not required to be furnished?

Ans: In accordance with sub-rule (3) of Rule 37BB, Form 15CA and Form 15CB are not required to be furnished in case of following transactions:

Remittance is made by an individual and it does not require prior approval of the Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999), read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000; or

Remittance is of the nature specified as follows:

Sl. No. Purpose code as per RBI Nature of payment
1 S0001 Indian investment abroad – in equity capital (shares)
2 S0002 Indian investment abroad – in debt securities
3 S0003 Indian investment abroad – in branches and wholly owned subsidiaries
4 S0004 Indian investment abroad – in subsidiaries and associates
5 S0005 Indian investment abroad – in real estate
6 S0011 Loans extended to Non-Residents
7 S0101 Advance payment against imports
8 S0102 Payment towards imports – settlement of invoice
9 S0103 Imports by diplomatic missions
10 S0104 Intermediary trade
11 S0190 Imports below Rs.5,00,000 – (For use by ECD offices)
12 SO202 Payment for operating expenses of Indian shipping companies operating abroad
13 SO208 Operating expenses of Indian Airlines companies operating abroad
14 S0212 Booking of passages abroad – Airlines companies
15 S0301 Remittance towards business travel
16 S0302 Travel under basic travel quota (BTQ)
17 S0303 Travel for pilgrimage
18 S0304 Travel for medical treatment
19 S0305 Travel for education (including fees, hostel expenses, etc.)
20 S0401 Postal services
21 S0501 Construction of projects abroad by Indian companies including import of goods at project site
22 S0602 Freight insurance – relating to import and export of goods
23 S1011 Payments for maintenance of offices abroad
24 S1201 Maintenance of Indian embassies abroad
25 S1202 Remittances by foreign embassies in India
26 S1301 Remittance by non-residents towards family maintenance and savings
27 S1302 Remittance towards personal gifts and donations
28 S1303 Remittance towards donations to religious and charitable institutions abroad
29 S1304 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
30 S1305 Contributions or donations by the Government to international institutions
31 S1306 Remittance towards payment or refund of taxes
32 S1501 Refunds or rebates or reduction in invoice value on account of exports
33 S1503 Payments by residents for international bidding.

Q.23 Whether TCS can be collected on amount inclusive of GST?

Ans: As per section 206C (1) every person, being a seller shall, at the time of debiting of the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer. Hence, amount debited to the account of buyer or payment shall be received by seller inclusive of VAT/ excise/GST. TCS to be collected on inclusive of GST.

Q.24 How much TDS will be deducted in case of payment of Remuneration to company’s director?

Ans: Sec 194J levies TDS on technical and professional services. As per the provisions of the Companies Act, director of the company is also a manager and thus, a technical personnel. As per Section 194J(1)(ba), any payment made to director in the nature of sitting fees, remuneration or any other sum other than those on which tax deductible under section 192 is to be considered for deduction of tax at source @ 10% under section 194J. Further, there is no threshold limit for deduction of tax at source.

Q.24 What is the procedure of filing Form 15CA?

Ans: Form 15CA shall be furnished electronically online. Procedure for filing of Form 15CA at e-filing portal is given below-

Step 1 – Log on to ” E-filing ‘ portal at https://incometaxindiaefiling.gov.in/ by assessee by using his credentials

Step 2 – Go to the ” E-file” menu located at the upper side of the page and click on Income Tax Forms.

Step 3 – PAN of the assessee will be pre-filled. Select “Form 15CA” from drop down list in “Form Name” from drop down list.

Step 4 – Select relevant part from “Select relevant part from the down “

Step 5 – Fill Form 15CA of selected part and click on “submit” button.

Step 6– Fill up the verification part of relevant part of Form 15CA.

Note- It is mandatory to upload Form 15CB prior to filling Part C of Form 15CA. To fill up the details in Part C of Form 15CA, the acknowledgment number of e-Filed Form 15CB will be required.

If Form is submitted successfully, a message “successfully submitted” will appear on screen and a confirmation e-mail will be sent to the registered email account.

Before starting the filling the Form 15CA, please refer to instructions available at https://portal.incometaxindiaefiling.gov.in/e-Filing/OnlineForms/CommonFormsLink.htm

Q.25 What is the procedure of filing Form 15CB?

Ans: To file Form 15CB, taxpayer is required to Add CA in his account. CA can be added by using the following steps:

  • Firstly Login to e-Filing Portal, click on “My Account” tab and select “My CA” option.
  • Enter the “Membership Number” of the CA, select 15CB from “Form Name” and click on “Submit” button.

Once CA has been entered by the taxpayer, afterwards CA can file Form 15CB in behalf of the taxpayer.

However, the C.A. must be registered as C.A. on his e-filing portal. Process for Registration as Chartered Accountant is as follows:

  • User can registered as “Chartered Accountant” in the e-filing portal. If not already registered, user is required to click on “Register Yourself” in the homepage.
  • Select “Chartered Accountants” from “Tax Professional” and click on “Continue”.
  • Enter the mandatory details and complete the registration process.

Process of filing Form 15CB by Chartered Accountants is as follows:

  • Go to http://incometaxindiaefiling.gov.in/ and click on “Downloads” tab.
  • Select “Forms (Other than ITR)” and then download either Excel or Java Utility as per your own convenience.
  • Prepare the XML file using the above utility.
  • Login to e-Filing portal account and click on “e-File” tab and select “Upload Form” from the drop down menu.
  • After selecting “Upload Form”, enter PAN/TAN of the assessee, PAN of C.A., select “Form Name” as “15CB”, select “Filing Type” as “Original”. Click on submit once you have done and you will receive a success message and afterwards an email will be sent to your registered email ID.

Note: DSC is Mandatory to file Form 15CB.

For details please refer to general instruction of java utility of Form 15CB.

Q.26 Whether TDS required to be deducted on payment made to Government?

Ans: No tax required to be deducted by any person from any sum payable to-

1. the Government, or

2. the Reserve Bank of India, or

3. a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income, or

4. a Mutual Fund specified under clause (23D) of section 10,

where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it.

TDS on Rent under section 194I of Income Tax Act, 1961

(Republished with Amendment, Source -Income Tax Website)
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189 Comments

  2. Nitin anand says:

    If a property is owned by 3 brothers ,A is owner of 50% B is owner of 25% and C owner of rest of 25%.property is sold for 1,1650000/- . C is a NRI what will be the TDS computation for 3 brothers .

      Reply
  3. Vijay Raturi says:

    I have received LDC (Lower deduction certificate) from Make my trip for the F.Y 2019-20 but amount of commission paid is excess to the given criteria and i deduct TDS on normal rate. Should i deduct TDS on lower rate for given criteria then after that TDS deduct on normal rate or TDS deduct on whole amount on normal rate. Kindly suggest.

    Thank you

      Reply
  4. Saahil says:

    My owner shifted out of India in Jan 20. Now from apr20 onwards I was depositing rent in his account without deducting tds as I was not aware that he is going to stay for longer duration so he will be NRI. Now his plan is for longer period. Pls suggest how to go about it now . Do I need to pay any penalty or interest. Also due to lockdown TAN creation is also taking time.

    Pls suggest on following
    1: can I deduct tds on half year rent and pay it at once at the end of sep20 , by that time I hope I will get tan also.
    2. What all documents are required to pay tds and then file tds return

      Reply
  5. K G NAGAR says:

    My relative could not submit Form 15 H due to lock down with the bank. TDS deducted on 15th july 2020. On same date she submitted Form 15H and requested the bank to refund the amount as it is lying with them and to be deposited in Government A/c by 7/08/2020..her total income is below Rs.3 lac and she do not file return. Can bank refund the amount.

      Reply
  6. K G NAGAR says:

    My relative could not submit Form 15 H due to lock down with the bank. TDS deducted on 15th july 2020. On same date she submitted Form 15H and requested the bank to refund the amount as it is lying with them and to be deposited in Government A/c by 7/08/2020..her total income is below Rs.3 lac and she do not file return.Can bank refund the amount

      Reply
    1. MAHESH KAGATHARA says:

      Yes. After the end of the month, bank transfer the tds to govt. from 1st to 7th. Before transfer Bank can refund the tds very easily. I worked in the bank and refunded in such cases many times.

        Reply
  8. seshadri says:

    For educational institutions exempted under the income tax act, the application for continuing the exemption could not be made till date. Whether this due date has been extended? What is the due date as of now/
    Thanks

      Reply
  9. Ravi Patel says:

    Consolidated invoice value exceeds Rs.100000 during the year for Vehicle Repairing, But Total of alI invoice shows 40000 towards labour charges and remaining for Parts. Labour & Parts separately shown in invoices.
    Whether TDS should be deducted and on what amount???

      Reply
  11. B P Gupta says:

    Transaction shown in 26 AS on 31.7.19 for 169881 with TDS 53000 deposited by employer on 30.10.19. The net amount of tax not paid during f.y.
    Kindly advise if the income will include 169881 for the f.y

      Reply
  12. Himani Raheja says:

    Rent payment to be made is 18000p.m. for FY 2019-20 but in sep19 rent becomes 24000p.m. as per new agreement and now limit of 240000 exceeds for the year.
    Whether my liability arises from april19 or sep19? And what interest rate will be considered ?

      Reply
    1. CA RAJESH GUPTA says:

      You not only have to start deducting the tds now onwards, please also deduct the tax for the past not deducted and pay the same. You can call me on 9739157015 for any further clarification.

        Reply
  13. Minal Mehta Shah says:

    Sir I(deductor) was supposed to pay TDS on Interest.however I Knew payee is suffering Loss as related party and so I defaulted in TDS on that much part. Recd notice from AO of Non deductoion/ Short deduction. at the same time payee included the said income in return and paid necessary taxes as applied. I applied for 26A but stil I had to Interest on TDS. Is there any way out not to pay such interest when we already know if tds deducted the same will be refunded to payee. Also kindly suggest the rate applicable of Interest if any for AY 20-21. Interest was supposed t be paid in March 2020

      Reply
  17. Divya says:

    Tds was deducted on fixed deposit which was in the name of state govt [email protected]% and challan was generated where pan was not available,can a deductor return back the TDs amount as the deposit belongs to govt dept.If yes kindly let us know how to do that

      Reply
  18. Kailash Kumar Rana says:

    Dear sir / mam
    Just tell me how to recover lost PRN or token number without any evidence of documents except user id and password. Without this i am not getting to prepare tds return and password reset.

      Reply
  19. Yogesh Khandelwal says:

    Hello,
    I would like to know that can I just the excess interest paid u/s 201(1A). With other deduction.
    ie. Suppose I’m liable to pay Interest u/s 201(1A) is Rs. 1,000/-. But I have made the payment of Rs. 3,000/- (instead of Rs. 1,000/-)
    And now I’m liable to pay TDS on 194C – amounting to Rs. 2,000/- (TDS amount) . So now can adjust the excess interest paid of Rs.2,000/- with this?

      Reply
  20. anil anand says:

    Looking for your advise .
    As part of the agreement for joint development. The builder paid us some consideration by cheque to each one of us in February.
    He now realized that he has to pay 10 percent to deductions as per section 194 IC .
    THE PAYMENT is as per agreement but no transfer of capital (property) has taken place. So how do we reflect this in our return. do we have to reflect the payment since builder will pay the 10 percent . If we do reflect then we pay tax at 33% which may not be recovered as LTCG Being nil later on.
    So what is the option for us as far as filing this years tax return.Is there a clause that we reflect but do not pay any more tax
    Shall look forward to your response.

      Reply
  22. Suchitra Sengupta says:

    If the aggregate amount of total labour charges bill does not exceeds Rs.75000/- in any quarter & for that I have not deducted TDS against the same but when the labour charges exceeds the limit I hav deducted TDS on the total amount in this quarter without any interest, please let me know whether I hav to pay interest on bill of previous quarter also

      Reply
  23. N Chandrashekhar says:

    Can i have clarification in a case where TDS is remitted and is appearing in form 26AS. But the payment relating to TDS is not received during that year. What will be the impact on IT return where the income does not match with the turnover shown in form 26AS. These cases are quite common in PSU’s or Govt departments where expenditure has to be booked before it is actually incurred.

      Reply
  24. Neel says:

    my question is counter to question number 8 (duties of the person deducting TDS) – If deductor of TDS does not issue TDS Certificate on quarterly basis then what to do?????????? – neel

      Reply
  27. ASHOK KUMAR JAIN says:

    Dear Sir,
    Kindly guide me ,what are legal actions should I take against bank if as a senior citizen I submitted Form 15H to bank and beside that bank deduct tax on my interest income.
    Ashok Kumar Jain
    Ph:9810315015

      Reply
  28. Kantilal says:

    If i file my itr in August and calculate tax in August. then in april I receive a demand. i get tds credit in december which iwas supposed to get in July and i considered that credit as received while computing tax. now what will happen and what to do ?

      Reply
  29. neetu says:

    Dear sir,
    one of our client has received tds related bills after 2 years of FY Closed and our clients does not make the TDS payments in that FY, now they has been closed their books for that particular year, could our client responsible for TDS deposit? can they book these bill is current FY & make TDS payment & Return in vurrent FY, will these bills be allowed or disallowed for current FY.

      Reply
  30. nancy says:

    i want to cut more tds than the default rates for 194J (10%), say on 100000 Tds under 194J will be 10000, but can i deduct more than 10000 for 100000, if yes, then what will be diffculty will arise during filling return.

      Reply
  31. Ramnathan says:

    Hi
    I am NRI.
    I have booked an apartment worth 1.1 Crore.
    The payment to contractor is to be made on demand basis.
    total demand made by them in FY 16-17 was
    Rs 30 L
    in FY 17-18 -Rs 40 L
    Do I need to deduct tax ( TDS ) while making payments.?
    Thank you

      Reply
  33. Hardik Panchal says:

    Suppose i’m availing contract service in july month & the service provider gives me bill on 31st August then is it right to pay TDS before 7th september2017

      Reply
  34. GANDHI MOHAN BHARATI says:

    TDS has become so complicated that for failure of Deductors in paying to Government or non submission of proper Returns or misquoting PAN by them, individuals are put to a lot of difficulty.
    Why can’t the Government introduce a Form 15J so that individuals themselves undertake to do the TDS and any failure to deduct and pay as an Advance Tax within a month is penalisable.?

      Reply
  35. KAMLESH SWARUP PURI says:

    Dear Sir,
    Can a deductee delay filing of IT return if the TDS is not deposited by due date of filing? What is remedy available to him ?

      Reply
  36. Anil Grover says:

    The matter is educative BUT ONE POINT IS MISSED , Please reply at [email protected]
    QUERRY – If TDS deducted in Aug 2015 and deposited in Jan 2016 but the payments given by Payer for this in parts between May 2016 to Oct 2016 (Next financial year).
    So AS 26 of AY 16-17 will show this TDS deposited and the payment received has to be Taxed in AY 17-18. The AS26 for AY17-18 will not show this TDS.
    Then how credit of this deducted TDS can be taken?
    In ITR I put deduction year 2015 but Credit not given and showed mismatch.
    How to correct the situation ??

      Reply
  37. M K Singla says:

    I’m a professional and paid salary under 194 J.
    My employer has deducted the tds @10% in FY 2016-17 at all the paymemts. All the payments were bank transfers. But instead of repeated requests they have not depoisted a penny to govt. and nothing is reflecting in my 26A.
    I’m not in stage to file a complaint against them.
    Is there any way by which I can file my return for the AY 2017-18.
    Any other suggestion.
    Thanks

      Reply
  39. SACHIN KADAM says:

    I HAVE PAID TDS U/S 194 RS.5300+5300= 10600/-EXCESS WITHOUT ANY LIABILITY. AS I CREDITED ENTRIES WRONGLY TO TDS U/S 194 C A/C, SO THESE RS.10600/- HAVE BEEN DEPOSITED IN BANK.

      Reply
  41. vinod says:

    I am a govt.employee with taxable income. I met with a Road Traffic accident recently. I had medical expenditure to the tune of Rs 70000/- for which i have not claimed reimbursement for my employer. please guide me whether their will be any change in my taxable income.

      Reply
  42. RSRINU says:

    how to avoid tds on fixed deposits made by govt institute, the fund was given by central govt, for which the govt institute made fixed deposit for temporarly

      Reply
  44. Jyothsna says:

    I have not deducted TDS for interest on unsecured loan and the expenditure is disallowed.but while generating 3CD report, it is asking me to quote TAN for which i did not deduct the TDS in the 34th clause.what should i do now??

      Reply
  45. Sharath says:

    I have TDS deducted by bank on the interest. Can I partially use tds deducted in a year and carry the rest of the TDS to the next year ? or should I claim the refund in the same year as the TDS was deducted ?

      Reply
  46. Abhinandan Jain says:

    SAy under 194j, limit is 30k..tds is to be deducted if payment exeed 30k dueing the year. For example if party gives bill of 4k each month and i advance i knwo that during the year the payment will exceed 30k..so whether to deduct TDS now or it is to be deducted at the time when it will actually exceed 30k. But i’m not sure. PAyment may exceed or may not (due to termination of any contract if any). In short when to deduct the TDS on 4k

      Reply
  48. Jim George says:

    Total income from salary is 806105 from which PF of 33312 and profession tax of 2700 has been deducted. How much will be my income tax

      Reply
  49. GANDHI MOHAN BHARATI says:

    TDS by Banks and reconciling the same with Form26AS has become a pain in the neck. Due to carelessness of the Deductorsa the the Assessee has to suffer. As per the present position of the Income Tax Act it is the Assessee who is to to run behind the deductor.
    Look at what Vijay Mallaya did.
    Why does not the Income Tax department introduce a Form like 15G or 15H wherein the Assessee himself undertakes to deduct TDS and pay as Advance Tax and give it to the Deductor. ( say call it Form 15J). Default by assessee may attract the same penalties as to the oriinal Deductor.
    The responsibility in any case is on the Assessee; whether Deductor collects, fails to pay to Government, makes mistakes in PAN or does not file the TDS Return or makes mistakes in the amount of TDS.
    It has been my frustration and exasperation with the Banks every Quarter for the past decade.
    Will the Department consider this or be happy with people like Vijay Mallaya who collected and not remitted and harassing the employees to pay again and honest poor citizens at the mercy of careless Bank emloyees whose mistakes lead to all the problems of assessees and thereby Government gets extra revenue.

      Reply
  50. Renuka says:

    Hi,
    I have withdrawn EPF from last employer. Amount is credited after deduction of TDS. I have received Form 16A for the same and it is reflected in Form 26AS. Now, my query is :
    -While filing income tax return for the FY 2015-16 should I mention PF amount in my taxable income (if yes; where)?
    -Because of this my slab rate has been changed and there is outstanding tax payable.
    -Both last and current employer has already been deducted TDS.

    Please guide!
    Thanks

      Reply
  51. Pune Office says:

    Sir,
    Where the Party Is Providing two type of services such as Labour and Vehicle Hiring Services. Does We have to deduct TDS under Both The heads i.e(194C and 194ia) if limit is crossed under only 194ia.

      Reply
  52. Nishant says:

    Last financial year I checked that none of my payslips have the income tax deduction mentioned in it. I noticed this when I saw my Form 16s [I changed my company last October, hence have two Form 16s]. Even the payslips from my current company did not have the income tax deduction for the months left in the previous financial year. The deduction started from April, 2016, i.e. the starting for the current finacial year. Because of this I have to pay the entire tax now when I am filing my return.
    My question is why did this happen that both the companies did not deduct the monthly income tax from my salary? Did I miss anything on my part?
    I have completed the e-filing on the Income Tax website but have not verified it. Do I have to pay the pending tax and then do the e-filing again and then submit the return?
    Or should I pay the tax and then verify the return, keeping the e-filing same?

      Reply
    1. Sasthamani Iyer says:

      Dear Nishant U have to pay the pending tax, do the e filing again ( Note to include Chalan No etc) & then submit the return. I did so last year.
      Sasthamani

        Reply
  53. Hema Gurbani says:

    I need to know, when is a proprietorship liable to pay TDS? Is there any limit for the payment of the same like Tax audit exemption limits are there

      Reply
    1. Kingshuk Das says:

      A Proprietor can deduct TDS or TDS can be deducted from him whenever and wherever TDS is applicable. For example if she is getting rent above 15000/- per month she should deduct TDS @ 10% preferably after application and allotment of TAN number. When she is a deductee i.e., when TDS is being deducted from her she should insist on getting TDS certificate and file her IT Return based on that certificate/s.

        Reply
  54. Rakesh says:

    sir we have not paid tds on amc paid in particular bank branch as the amc charge of the company was less than Rs 30000/-during the year, but the statutory auditor is insisting that tds will be deducted kindly guide us in this matter

      Reply
  55. Harshvardhan vaidya says:

    I had one question on TDS on Property – while buying from Builder a under construction property – Do we need to pay TDS for each installment of property under construction?Or we can pay it one time at the time of Registering property?

      Reply
    1. CA SUDHIR GOYAL says:

      If the value of property value is Rs, 50 lacs or more, Yes you have deduct tds on each instalment and have to pay govt before 7th of each month,
      no you can not pay at one time of registering property.

        Reply
  56. sasi says:

    sir my client don’t have a PAN and deducted TDS as per normal rates instead of deducting TDS @20%. i got notice from department n am i liable to pay demand if i applied for PAN no. n file Revised Return

      Reply
  57. Sharath says:

    Dear Sir,

    I am an NRE, I had opened Fixed deposit of 29 Lacs in Central Bank for 1 year in Sept 2010 with option of automatic renewal with interest. From Sept 2011 to August 2014 every year bank renewed my fixed with accumulated interest. In the month of may 2014, I was in need of funds so I prematurely withdrawn my FD. Bank has paid me interest up to September 2013. They have not paid any interest for the period Oct 2013 to May 2014.

    They explained me that no interest on NRE Premature withdrawal.

    Please let me know if bank is Right.

      Reply
  58. seby says:

    I am working in two wheeler vehicle dealership, we are collecting insurance premium from customers & paid to insurance companies, we are not deduct tds against their payments. Insurance companies are exempted from tds or not ?

    Only insurance companies are exempted from tds. Please advise about When TDS is not Deducted?

      Reply
    1. AMIT JAIN says:

      HELLO SIR,
      IF YOU HAVE INDIVIDUAL PROPRITORSHIP TAN NO. OR YOU HAVE YOUR OFFICE (COMPANY OR FIRM) TAN NO. THEN YOU HAVE AN AUTHORITY TO DEDUCT THE TAX BEFORE THE PRIMIUM PAID.U/S 194 D WITH 10 % DEDUCT THE TAX AND THEN FILL THE PREMIUM. THIS PROCESS IS STARTED NEWLY BY THE INCOME TAX DEPARTMENT.
      THANK YOU

        Reply
  59. sushil mohatta says:

    Dear Sir,

    Please reply to my queries on tds on rent pvt ltd company taken on rent from [email protected]/rent per month till march2016 totalrent payable is Rs 96000/ whether we are liable to deduct TDS on rent payable monthly or can we saythat rent is less than Rs 180000/ in FY 2015-16.Please do sent me your reply because as per Landlord no TDS to be deducted
    Regards/ sushil

      Reply
    1. AMIT JAIN says:

      HELLO SIR,
      I HAVE READ YOUR QUREY.IN THAT FINANCIAL YEAR IF YOU ARE NOT CROSSING THE LIMIT OF RENT U/S 194ib ABOVE 180000/-. THEN DON’T DEDUCT TAX BUT FROM NEXT YEAR YOU SHOULD DEDUCT THE TAX AND SUBMIT TO THE INCOME TAX DEPARTMENT BECAUSE YOU ARE GOING TO CROSS THE RENT LIMIT U/S 194ib.

      THANK YOU

        Reply
  60. himanshu says:

    We have debited Rs.38500 on account of Testing Charges in Profit &
    Loss a\c. We are a contractor out of amount Rs. 38500 an amount of Rs
    32500 is deducted from our payment(i.e from contract receipt) by the
    Panchayati Raj, Hisar for whom we have worked.

    Now the Assessing officer has issued notice for not deducting the TDS.
    Kindly suggest me any case law/study regarding the above situation. I
    will be thankful.

      Reply
    1. AMIT JAIN says:

      HELLO SIR,

      IF PANCHAYTI RAJ HISAR DEDUCT YOUR TDS FROM YOUR CONTRACTOR BILL. THEN TAKE FORM NO.16A CERTIFICE OF (TRACES WEB CITE)INCOME TAX GENERATED FROM PANCHAYTI RAJ HISAR.IF THEY DEDUCT YOUR TAX IT MEANS THEY HAVE TAN NO. UNDER HIS TAN NO. THEY CAN GIVE YOU FORM NO.16A CERTIFICATE(TRACES WEB CITE) AND SHOW TO THE INCOME TAX DEPARTMENT THAT CERTIFICATE.THEN INCOME TAX TAKE HIS ACTION BACK.
      THANK YOU

        Reply
  61. Jitendra says:

    Sir
    I RUN INDIVIDUAL FIRM & TAKE UNSECURED LOAN FROM FATHER & UNCLE RS. 6 LACS EACH.
    PLS GUIDE ME THAT WHAT LIMIT OF INTEREST PAYNENT & TDS DEDUCTION.
    IF I DEDUCT TDS THEN WHAT PERIOD OF TDS DEPOSIT QTRLY OR ANNUALY?
    THANKS WITH REGARDS
    JITENDRA

      Reply
    1. AMIT JAIN says:

      HELLO SIR,

      I HAVE READ YOUR QUERY. U/S 194A IF YOU ARE CROSSING INTEREST LIMIT RS.5000-/. THEN YOU SHOULD DEDUCT THE TAX AND SUBMIT TO THE INCOME TAX DEPARTMENT WITH QUARTERLY.BECAUSE YOU ARE GOING TO PAY THE INTERST MONTHLY.SO YOU SHOULD ALSO FILE THE TDS RETUN QUARTERLY.
      THANK YOU

        Reply
  62. R.C AGARWAL says:

    our school organize annual function , our management some event managment services highering whic rate tds applicable ( 194 C or 194J) ???. pLEASE help me

      Reply
  63. Dahale S S says:

    Though My bank ( SBH) used to deduct TDS on interest generated on 1000 days FD’s of mine ( a Senior citizen)for 2 years , and I used to show the same in my ITR ,as per 26 AS ,everything was running smooth,then ,in the third year , in the month of July , as TDS was neither deducted by SBH -nor shown in 26 AS , hence after inquiry, SBH asked me to PAY amount equivalent to TDS to them , and then SBH PAID to IT authorities as TDS on interest, on my behalf .

    after maturity of those FD’s,it was seen that , i received CONTRACTUAL MATURITY AMOUNT (after deducting TDS), but i was not reimbursed-refunded-credited with amount equivalent to TDS (of the third year)that was CREDITED by me to SBH and then that bank has CREDITED TO IT authorities.
    when it was brought to SBH , they agreed to reimburse-refund that amount with 18% comp.interest

    Now bank is neither refunding that amount …what to Do…..

      Reply
  64. kafeel says:

    can TDS be deducted on wharfage charges if the deductor is a government entity / public sector and also deductee is a goverment entity ? TDS Applicable ? ( Chennai petroleum corpration ltd can deduct TDS on wharfage charges ? )

      Reply
  66. Mahendra Patil says:

    If government organisation is getting commission form any sours, is this commission is taxable? if taxable then even tho government organisation having TAN no. is there any requirement of PAN no.

      Reply
  68. Shiwali says:

    Can anyone tell me that whether we have to deduct tax on service tax component if payment is made to non resident and service tax is paid on reverse charge basis

      Reply
  70. sushma paliwal says:

    My PAN NO.entered wrong during the e-filling, so no income tax is deposited against my PAN no. from last three year. what should I do now ?

      Reply
  71. subhasis mukherjee says:

    In case of a company ( Pvt Ltd ) availing term loan from NBFC and paying EMIs on a monthly basis . Kindly suggest if the borrower needs to mandatorily deduct TDS on the interest portion and pay the EMI every month as a compliance.

      Reply
    1. jinal says:

      TDS is to be deducted on provision of expense or its payment w.e. is earlier. Hence in this case TDS is to be deducted monthly and paid monthly.

        Reply
  72. MANOJ says:

    I have purchased Materials from a foreign company in india along with a valid bill with tin number , do we have to deduct TDS from such payments made to them

      Reply
  73. Santosh says:

    Sir …I have made a payment of 15000 i the month of June to a contractor and have not deducted tds on that payment assuming no further transaction with the party in future. Later on one more transaction was done with same party and made a payment of 20000 in the month of July……And i deducted TDS on entire amt of 35000 with a view of further business…..now plz guide me regarding the tds provision about date of payment and date of deduction in respect of 15000 …(TDS deducted on this 15000 in the month of july along with payment of 20000 and paid RS 350in the month of August )

      Reply
  74. jagjitan says:

    Sir my tax is deducted from the salary but during filing itr it shows the diffrence.whereas the pay slip shows that tax is deducted as per regulation.sir what to do now.

      Reply
  75. VENKAT says:

    respected all,

    i am an mobile recharge distributor, my nature of business is to sell mobile recharges both e-recharge and recharge cupons , pls suggest that on which system it need to submit income tax return

    weather tax audit case or commission basis.

    what is the procedure for filing returns for mobile recharges distributors , pls suggest

      Reply
  76. Balasubramanian says:

    I have deducted TDS U/s 194J while making provision at the year-end and paid the same and filed the Q-TDS for the same. But now we have received the actual bill which is more than what we have provided. So, we have dedcuted the TDS on the excess amount. But how to show in the Q-TDS

      Reply
  79. Sravanalakshmi says:

    took a loan from tata finance, paid instolment regularly. but did not deduct the tds as per provison, but the payment for TDS is received from payee on may of next financial year. what is the due date for depositing the TDS received from payee and filing of statement on TDS and what are the interest rate applicable for TDS?

      Reply
  80. Pankaj Patel says:

    took a loan from tata finance, paid instolment regularly. but did not deduct the tds as per provison, pls give me a advice we claim Interest As a Expense or Not

      Reply
  81. Pankaj Patel says:

    took a loan from Religar finance, paid instolment regularly. but did not deduct the tds as per provison, pls give me a advice for We Sow Interest in P & L A/c or Capitalaise

      Reply
  82. Rohit Chona says:

    penalty charges levied by the terminal for violation of the terminals regulations and ISGOTT safety requirements.

    service provider is : port service

    my question is he is charging me with a service tax bill. should i deduct tds on the bill amount or not if yes then why and how much. please thanks

      Reply
  83. babli says:

    Hello,

    I am working as a consultant and i get professional fee every month. Out of my fee TDS is deducted every month and now I would like to get the return of my entire TDs amount as my income for the previous year is not taxable.
    Kindly let me know the procedure. i will get TDS certificate from the company.

    Regards & Thanks

      Reply
  84. M.Srinivasan says:

    I have a Fixed Dep in a bank I have furnished my PAN the bank was deducting TDS @ 10% from the qtrly int suddenly without any intimation or alert this qtr they have deducted 50% as TDS when I asked the branch they said TDS is done by a centralized system and the branch has no say in TDS what should I do

      Reply
  85. Rajan S says:

    While remitting TDS deducted from salary of staffs, we wrongly remitted it mentioning “(0020)COMPANY DEDUCTEES” instead of “(0021)NON-COMPANY DEDUCTEES” under Tax Applicable column. Return is yet to be filed. What may be its possible consequences?
    Kindly guide me how to rectify.

    Thanks in anticipation.

      Reply
  86. shanthi says:

    I M A banker
    kindly clarify whether we have to deduct tds if pan no is not submitted by customer but interest income is below Rs.10000/-( interest on term deposits).Urgent

      Reply
  87. swaroop b v says:

    Dear Sir,

    We are HR consultants with contract agreement with our clients can I ask my clients to deduct 2% TDS if so under which notification.

    regards
    swaroop

      Reply
  88. SUNIL MANOCHA says:

    i am a banker and deducting tds from FD SINCE LAST 5 YEAR. ASSESSEE DID NOT APPROACH ME FOR ANY TDS CERTIFICATE. DOES BANK IS RESPONSIBLE FOR DISPATCHING TDS BY POST OR COURIER TO HIS CORRESPONDENCE ADDRESS.

      Reply
  89. ajay purohit says:

    mr A has made some deposit with mr b AMr A asks for payment of intrest without deduction of TDS as he is having income below the eemption limit, He has furnished the Gorm 15g what will be the duty of Mr b in this case.

      Reply
  90. SWAPNIL PATIL says:

    Dear Sir,

    If foreign contractor work for rework of our job in his country. please consult that whether TDS is applicable or not?

      Reply
  91. Shankar says:

    I was taken Loan from Bank and i am paying interest on loan. kindly tell me any TDS applicable on interest amount….. urgent…

      Reply
  92. Ganapati Hegde says:

    My query is that for FY 2011-12 I filed 24Q Q4 TDS return , I furnished 2 employes name and salary details in the return. I have not deducted TDS from their salaries. Income tax not applicable because their salary is below Rs. 180000/- PA( Rs.168510/- & Rs. 166810/-) I have not furnished their PAN No. because they have no PAN No.

    The income tax Assessing Officer, DCCT , centralized processing cell- TDS sent intimation u/s 200A for Rs. 61720/- with reason short deduction and interest on short deduction.

    Please tell me whether it is correct or not. Whose mistake it is.

    Ganapati Hegde

      Reply
  93. Viral Patel says:

    Very good article. Very important question/query i have.

    Some company have wrongly deposited around 25k TDS u/s 194j in my PAN number account and i can see it in my form 26AS. I am salaried person. What should i do? Shall i use that TDS as my tax liability and i should pay only remaining amount of my tax liability after deducting 25k?

    Expecting response.

    Thanks
    Viral

      Reply
    1. rahul says:

      Please get your 26AS corrected. The department might end up asking you to show business income of Rs. 250000/- since TDS of Rs. 25000 has been deducted u/s 194J

        Reply
  94. rajesh says:

    We are the security service providers. Let me know whether the service tax is applicable on interest or not. (Interest on late payment / out standing dues received from clients)

      Reply
  95. Ganesh says:

    Sir/Madam,

    we hired a lorry for only deliver the construction material from quary to site,
    My question is the person is a liable for deduction of tds? if yes which percent

      Reply
  96. CASDANDCO says:

    I HAVE GIVEN CONSTRUCTION OF BUILDING CONTRACT ON MY OWN LAND. I AM A SALARIED PERSON. COST OF CONSTRUCTION IS 65 LAKHS. WHETHER I HAVE DEDUCT TDS U/S 194-IA OF THE INCOME TAX ACT

      Reply
  98. Manjiree says:

    Sir,
    we are a owner of one office in one premises. We are receiving maintenance charges ( a fixed amount) along with service tax of @12.36%. Whether we should deduct tds while making payment for the same.

      Reply
  99. ssm says:

    Is there any provision which allows that if the employer has failed to DEDUCT tds on salary so CA of employee can issue a certificate that TDS has been taken care of by the CA

      Reply
  100. Arun says:

    Plz clarification. My company sale a cisco support pack only applicable for service tax. But customer Detuct TDS amount for 10%. My doubt Support Pack Is not Applicable TDS. Plz send Currect Answer

      Reply
  101. Rinkle says:

    Sir,
    Please tell me if in case of any bill raised by contractor include service tax also, then at which rate TDS will be deducted, whether @1%,2%(as contractor) or @10%(because service tax is charged on the bill)

      Reply
  102. Nikita Kejariwal says:

    Sir,
    where an individual/HUF has proprietorship business and TAN under firm name, is he required to get a new TAN for deducting TDS on Expenses other than those related to firm

      Reply
  103. Nikita Kejariwal says:

    Sir,
    I want to know if assessee is having TAN registered in the name of the firm, being propreitorship business, and is also liable to deduct tax at source on the interest on loans taken in personal name (other than those used in the firm), is the assessee liable to take a new TAN in personal name to deduct TDS on interest payable on loans taken in personal loan.
    Kindly explain.

      Reply
  104. amit says:

    Q. If “x” is dealing in two business first is on which he charges commission & in other business his tds is deductible in section 194 C to single party Z. his limit under commission i.e. 194H head exceeds the chargeable limit to Tds, but does not exceeds the limit under the head 194C. Can anyone suggest me Either Z should deduct Tds under both the heads due to it exceeds in any one head or should wait for limit in 194C.

      Reply
  105. Dilip kumar paliwal says:

    assessee covered by audit u/s 44AB in preceding f.y.,and in current fy only liable to deduct tds u/s 194A (interest exp.to one person more than Rs.5000 ). but the receivers’ total income does not exceeds MANCT(Rs. 200000)ie. he can submit form 15G.
    Is the assessee is required to take TAN no. in this year?
    please reply.

      Reply
  107. pintu says:

    I am proprietor of company.I am resident on rent and I am paid rent Rs 50000/- per month. I want to know on this rent Tds is applicable or not ?

      Reply
  108. Moses says:

    I am a business consultant to a group of Companies numbering six. Group had undertaken supply of foodgrains and other items to Government Department through a nominated Govt. agency during the A.Y. 2009-10; 2010-11 and 2011-12 under tie-up arrangement on back to back basis. The Department treated Govt Agency as Contractor (though not supposed to be) and deducted TDS under 194-C and issued Form 16-A in lieu of that. The TDS amount, so deducted , was subtracted from our payments by the Agency. But the Govt Agency is not releasing the TDS amount even after 3 years, saying that its Income Assessment has not been completed and also few entries (less than Rs .10 lakhs) are to be converted from “P” to “F” in 26AS. Our plea to release the amount through various correspondences have gone to the deaf years of the Agency. The claim amount runs in few crores of rupees.
    My question is as to the reasons given by the Agency is justified ? How long the Agency can dilly-dally the matter and the limitations? Whether Our group is entitled to get the refund with interest? Please clarify.

      Reply
  109. Pankaj says:

    Sir,

    I was working with firm in year 2010-2012 and in FY 2010-2011 Employer deducted TDS of Rs. 2.47 L and never deposited to IT department. At the year end, Employer provided Form 16 in which it is stated that “Employer has deducted TDS but yet not deposited the same and Employer will deposit the same at earliest.” I have filed ITR with same understanding attaching that Form 16. Then after in 2012-13 I got notice from IT department of outstanding of Sum of Rs. 2.47 L. I replied to this note is very polite and positive manner confirming all possible details and also providing some reference court cases confirming that it is Employer’s responsibility to deposit TDS deducted. But IT department is possibly not accepting my humble request and they have sent me another notice asking for interest component as well. To which I have replied in formal commercial language with help of my C.A. and awaiting revert from IT Department. Now I request you to guide how to proceed with this case as explained above as IT department has started deducting /not paying my refund and adjusting the same against so claimed outstanding…..Your valuable inputs will be appreciated. Please let me understanding in case any additional details are sought from my end to facilitate your quick and valuable response.

      Reply
  110. aqqi says:

    A Non Resident party issued an Invoice detailing Software Upgradation Charges to our Resident client. I want to know whether our client needs to deduct TDS of such Non Resident. If Yes then under which Section??

      Reply
    1. Anand says:

      Ms. Jayashalini:

      Madam,

      TDS Rate = 1% (if the payee is individual or HUF having valid PAN)
      TDS Rate = 2% (if the payee is not an individual or HUF)

      TDS @ 20% to be deducted if the payee is not having PAN or not willing to share PAN (in case of resident).

      Hope this information serves the purpose. For more information on TDS, you may email [email protected].

      Thanks,
      Anand Prakash Choudhary

        Reply
    1. Anand says:

      Sri Sujit:

      Sir,

      1. Deposit the TDS already deducted,
      2. File details of TDS in quarterly return whenever due,
      3. TDS is payable at the time of payment or payment becoming due (making provision for payment by book entry),
      4. I am not sure about the second part of your question, plz elaborate this – “let us know how to claim the bill or procedure”

      Thanks,
      Anand Prakash Choudhary

        Reply
  115. Anand says:

    Smt. Rita Bedi,

    Madam,

    1. Deposit TDS now.
    2. Inform Circle TDS Officer voluntarily.
    3. Request him for condonation of delay.
    4. Mention the case law of – Jaslok Hospital & Research … vs Department Of Income Tax on 7 November, 2012 and Mls Eli Lilly & Co. (India)(P) Ltd., 312 ITR 225 (SC).
    5. Also, there is a case law (unable to recall)that says – Penalty can not be imposed on deductor for failing to deduct TDS, if the deductee has discharged his tax liabilities well.

    This is not an expert opinion.

    Anand Prakash Choudhary

      Reply
  116. Anand says:

    Sri Vashisth,

    Sir,

    TDS provisions are applicable on the basis that vendor account being credited or payment made whichever is earlier. It can also differ in case to case scenario.

    Anand Prakash Choudhary

      Reply
  117. Anand says:

    Sri Vashisth,

    Sir,

    TDS on service Tax portion of a bill is not to be made as per circular no. 01/2014 of CBDT. Also, do not get confused with the words agreement/contract mentioned in it. It is applicable to all bills/invoices.

    Anand Prakash Choudhary

      Reply
  118. Anand says:

    Sri Joginder Sud,

    Sir,

    For your information: the deductors are made liable for this. Once you file your ITR and if there is mismatch between the TDS claimed and TDS credit in your TRACES account, then the Assessing Officer (A.O.) will first issue a demand notice of the differential amount of TDS and interest. Then, you are supposed to present the TDS certificate to the AO clearing your position of TDS mismatch. The AO will then issue notice to the deductor (via respective TDS jurisdictional officer)for difference in the TDS certificate provided to you and TDS statement filed by them. The deductor will either explain the reasons or will file a correction statement. This solves the problem.

    Anand Prakash Choudhary

      Reply
  120. Vashishth says:

    i receive a bill of contractor , there is a debit note to be issue to same party , should i deduct tds on bill amt or on the balance amt after deducting the debit note amt.

      Reply
    1. Anand says:

      Sri P K Chopra,

      Sir,

      As per my understanding, you are not covered with the provisions of section 192, rather you are covered under section 194J. You can check the TDS statement (form 26AS) that under which section TDS is being made.

      Anand Prakash Choudhary

        Reply
  121. rita bedi says:

    sir,my known to person doing some business of transport and this year sale of Rs.19300000/- taken a loan from private financer and Banks (2013-2014) but he could not deducted the TDS on Intt.Paid to private Financer Rs.573000/-) ,could pay the TDS month of october 2014 ;or can impose the penalty /

      Reply
  122. joginder sud says:

    So much has been written on TDS problems faced by tax payers. No body has tackled the issue as to what can tax payer do if the deductor fails to file correction for TDS mismatch on form 26As.There is need to hold deductor responsible if he fails to correct the mismatch.

      Reply
  123. p.k.chopra says:

    working on contract basis in a autonomous body of central govt against a regular post at initial of pay scale plus grade pay plus d.a. admissible.my drawing and disbursing officer deducting income tax @ of 10% ignoring the basic exemptions i.e. 3,00,000 for senior citizen plus investment made under relevant sections upto a limit of 150000 and asked me to take refund of tax from income tax department. Isit correct on the part of my employer. kindly reply.

      Reply
  125. Anand says:

    Sri Manish Tanwar:

    Sir,
    You can not deduct Tax on purchase of office items like stationery etc. TDS is not required to be deducted on supply of goods. If the bill consist of any type of service charges, then TDS is required to be deducted on whole amount u/s 194C.

    Thanks,
    Anand Prakash Choudhary

      Reply
  126. Anand says:

    Sri G.K.Sharma:

    Sir,

    The TDS will be deducted from the payment to be made to the Bank if it exceeds Rs. 50,00,000/-. The irony is that, the Bank is not entitled to claim this TDS credit in the Annual Income Tax Return.

    Thanks,
    Anand Prakash Choudhary

      Reply
  127. Anand says:

    Sir, your answer to the FAQ – Whether any person is exempted from TDS deduction? Is there any such relaxation? If so what is the procedure that should be followed? seems not to be correct. The assessing Officer is required to issue a certificate for lower deduction of tax or nil deduction of tax u/s 197(1) only from ITD system (internal software of Income Tax Department) and not on the palin paper.

    Thanks,
    Anand Prakash Choudhary

      Reply
  128. Brij Kishore sinha says:

    Dear sir
    your website is very useful and knowledgeworthy.I appreciate your efforts.
    There is a question for you.
    I am a university employee in the state of Bihar.Our PF have been beeng deposited
    in a commercial bank’s saving a/c.Why is it not deposited in EPF or GPF?
    The bank used to deduct tds on intrest generated from PF a/c?The int.which being
    cummulated.Paid only on books of the bank.
    We know till now that int.of the PF a/c is tax free.So can we claim for the refund of tds from PF a/c from the Income tax dept.

      Reply
  130. prakash says:

    in truck loan,

    i took a loan from tata finance, paid instolment regularly. but did not deduct the tds as per provison,
    pls give me a advice for relief if any judjement come pls inform

      Reply
  131. CA. Subhash Chandra Podder says:

    Good write up, every tax payers should know about this TDS Mechanism .

    CA, Subhash Chandra Podder ,FCA
    Kolkata
    13/10/2014

      Reply
  132. S.CHANDRAMOULI says:

    ONE OF CLIENT RAISE SERVIE BILL BUT PARTY NOT PAID MY BILL AMOUNT BUT ONLY REMITTED TO GIVE TDS, WHETHER I CAN CLAIM MY BILL AMOUNT BASED ON THIS TDS REMITTANCE

      Reply
  133. G.K.Sharma says:

    My Question is this: Bank acquired a immovable property under SARFAESI Act and sold by e auction to some body. whether TDS liability is there if yes who will pay and how much.

      Reply
  135. Sanjay Bhagat says:

    I want to know about interest on borrowing capital for housing, whether company can give deduction of interest on housing loan, which is let out from salary.

    Please clarify the same immediately

      Reply
  136. Dilip Patel says:

    Money credited in the account or in the name of 1st account holder any credit in the account is treated as 1st name holder. after that second holder makes deposit in her/his name alone, is there any violation of IT rules ?

      Reply
  138. Santosh says:

    Dear Sir,
    Please let me know regarding TDS deduction, if 1 party raised 3 bills to us and one of that bill is Rs.40000/- second Rs.6000/- & third one is Rs.4000/- Total billing Rs.50000/- as per tds rule if single bill is over Rs.30000/- you will deduct tds Now in this situation i will deduct TDS of single bill which more than Rs.30000/- or three bills ?
    Thanks & Regards

      Reply
  139. Premlata Jain says:

    Dear Sir
    What if the builder is charging the maintenance charges to the unit holder for reimbursement as the builder has to pay
    the same to the agency who looks after housekeeping, security, Lift, & other facilities.
    1.Whether TDS to be deducted by the unit holder while reimbursing to the builder?
    2.Whether Service tax is applicable when reimbursement is made to the builder for maintenance charges?
    Please quote the section no.
    Thanks

      Reply
  140. ARUN KUMAR SINHA says:

    Bank has deducted and deposited excess tax to the income tax department in financial year 2010-11 fourth quarter (31st March 2011) , can deductor claim for refund before the income tax department

    Arun kumar Sinha

      Reply
  142. Ram sukhit choudhary says:

    Dear sir,

    we have to pay a private limited co as a ware house storage charges rs. 70000/- pm. and Repair and maintenancee charges including ground rent maintenance charges Rs. 30000/- p.m. My question is specially Repair and maintance charges including ground rent maintaince charges Rs. 30000/ is tds applicable if yes what Rate and other one ware house storage charges rs. 70000/- pm what rate od tds is applicable

    Thanku for your anticipation

    Urgent
    R.s.choudhary

      Reply
  144. E.RAMESH says:

    Dear Sir,

    I am working with pharma company, whether we have to pay excise duty on RM samples , which is for Quality control samples , for example 100 kgs received 10gm using for testing.

    Kindly guid us.

    With Regards,

    E.Ramesh

      Reply
  146. vinit says:

    in provisional cases tds paid on 4th may 2011 so what is the interest n how many month in shd be paid (ap n may or only may)

      Reply
  147. vinit says:

    in provisional cases tds paid on 4th may 2011 so what is the interest rate & for hw many month int will be paid (april n may or only may)

      Reply
  148. Chaithra says:

    Hii

    I am drawing Rs. 10000/- per month. Company is deduction Rs. 1000/- as TDS. Though I am not eligible to pay TDS as per my salary slab, one of my colleague suggested that this amount can be reimbursed from Income Tax. So please help how to get reimburse this amount.

    Regards
    Chaithra

      Reply
  149. SANJAY BHUNIA says:

    I want clarification regarding TDS on interest income. Interest income upto 10000 is exempt from tax, but if interest income is (say) 11000 then 10% TDS will be deducted from (11000-10000=1000) or from entire 11000?

      Reply
  150. S.Ramakrishnan says:

    TDS on the amount you are paying; say the amount you have to pay by cheque but subject to deduction of TDS, so you are duducting the TDS and paying the net amount/balance amount. For the TDS deducted you are the Treasurer and bound to remit the amount to the I.Tax Authorities and issue the Tax Deduction Certificate to the Payee.

    This is just a Source of Deduction from payment, and the payee will get the credit for the Income Tax Deducted at Source while computing his income for Income Tax purposes.

      Reply
  152. Gaurav says:

    Am i suppose to deduct TDS on Invoive Amount of A Profeesional Service Provider’s Bill including Services Tax…?

    Confused with Circular no 4 dated 28-04-2008 and Provisions under Section 194-I and 194-J.

      Reply
  153. harish says:

    Hello Sir,

    My wife would like to start investment in stock market. Initial Money will be borrowed on interest [from

    local private money lender].

    I want to know how tax will be calculated on profit of Stock Trading.

    Can she adjust the interest charges of borrowed money with share profit.

    Is it required that she has to maintain any document on Borrowed money Interest.

    if income does not cross 1.6 L/A then Income tax Return filling is required.

    It would be better if you provide an illustation on this.

    Thanks a lot in advance
    Harish

      Reply
  154. swati says:

    Would like to get clarification on section 54 F
    My client has sold long term capital asset. He is going to invest consideration in residential house and avail 54F.
    But, new house will be jointly in name of him and his brother.
    Shares will be separately mentioned in sale deed.
    Consideration will be paid by them separately as per their share.
    Whether he can get benefit of 54F?

      Reply
  155. arun karnwal says:

    i want to know about the travell deduction details. i travell from my home to office and vice-versa and spend nearly 500/- per month. will you please tell me, how i take deduction benefit in above said condition.

    thank you

      Reply

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