Tax Deducted at Source (TDS) is a system introduced under the Income-tax Law for efficient and timely tax collection at the point where income is generated. Under this mechanism, tax is deducted by the payer from specified payments and remitted to the government on behalf of the payee. The objective is to ensure a steady inflow of revenue to the exchequer and to reduce tax evasion by collecting tax at the very source of income generation. TDS provisions are applicable to a wide range of transactions, including payments such as salaries, interest, commission, brokerage, professional or technical fees, royalties, and contractual payments. The person responsible for making such payments is required to deduct the prescribed amount of tax before disbursing the income and deposit it to the credit of the Central Government within the stipulated time. This system thus acts as an advance collection mechanism, ensuring tax liability is partially met throughout the year rather than in a lump sum at the time of filing returns.
For the financial year 2025–26 (assessment year 2026–27), TDS rates vary depending on the nature of payment, the residential status of the payee, and the category of taxpayer—individuals, Hindu Undivided Families (HUFs), companies, or non-residents. For residents, TDS on salary (Section 192) follows normal slab rates, while interest on securities (Section 193), dividends (Section 194), and other similar payments generally attract 10%. Winnings from lotteries, horse races, and online games (Sections 194B, 194BB, 194BA) are subject to a 30% deduction. Contractual and professional payments (Sections 194C, 194J) are liable at 1–2% and 2–10% respectively, while rent (Section 194-I) ranges between 2–10% depending on the asset type. Certain specific provisions such as Section 194Q (purchase of goods) and Section 194O (e-commerce transactions) prescribe 0.1% TDS, whereas new provisions like Section 194T (effective from April 1, 2025) cover payments to partners of firms. For non-residents, higher rates apply to certain payments, including royalties, technical fees, and capital gains, generally ranging between 10% and 30%. In cases where the deductee fails to furnish a Permanent Account Number (PAN), Section 206AA mandates TDS at 20% or the applicable rate, whichever is higher. Additionally, payments to entities in notified jurisdictions under Section 94A(5) attract a minimum TDS rate of 30%. Collectively, these provisions ensure a structured and transparent mechanism of tax collection aligned with compliance requirements for all categories of taxpayers.
Q1. What is tax deducted at source?
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.
Q2.What are the payments covered under the TDS mechanism and the rates for deduction of tax at source?
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 2025-26 are as follows—
Rates for tax deduction at source*
[For Assessment year 2026-27]
| Particulars | TDS Rates (in %) |
| 1. In the case of a person other than a company | |
| 1.1 where the person is resident in India- | |
| Section 192: Payment of salary | Normal Slab Rate |
| Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee. | 10 |
| Section 193: Interest on securities | |
| a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; | 10 |
| b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; | 10 |
| c) any security of the Central or State Government;
[i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security] |
10 |
| d) interest on any other security | 10 |
| Section 194: Income by way of dividend | 10 |
| Section 194A: Income by way of interest other than “Interest on securities” | 10 |
| Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort, or from gambling or betting of any form or nature whatsoever. | 30 |
| Section 194BA: Income by way of winnings from any online game | 30 |
| Section 194BB: Income by way of winnings from horse races | 30 |
| Section 194C: Payment to contractor/sub-contractor | |
| a) HUF/Individuals | 1 |
| b) Others | 2 |
| Section 194D: Insurance commission | 5 |
| Section 194DA: Payment in respect of life insurance policy
w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out |
2 |
| Section 194EE: Payment in respect of deposit under National Savings scheme | 10 |
| Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India
Note: The provisions of this section are not applicable with effect from 01-10-2024 |
20 |
| Section 194G: Commission, etc., on sale of lottery tickets | 2 |
| Section 194H: Commission or brokerage | 2 |
| Section 194-I: Rent | |
| a) Plant & Machinery | 2 |
| b) Land or building or furniture or fitting | 10 |
| Section 194-IA: Payment on transfer of certain immovable property other than agricultural land | 1 |
| Section 194-IB: Payment of rent by individual or HUF not liable to tax audit | 2 |
| Section 194-IC: Payment of monetary consideration under Joint Development Agreements | 10 |
| Section 194J: Fees for professional or technical services:
i) sum paid or payable towards fees for technical services ii) sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; iii) Any other sum Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center. |
2
2 10 |
| Section 194K: Income in respect of units payable to resident person | 10 |
| Section 194LA: Payment of compensation on acquisition of certain immovable property | 10 |
| Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. | 10 |
| Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] | 10 |
| Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section 115TCA) | 10 |
| Section 194M: Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.
Tax shall be deducted under Section 194M with effect from 1/09/2019 when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh. |
5 (till 30-09-2024)2 (w.e.f 01-10-2024) |
| Section 194N: Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office:
i) in excess of Rs. 1 crore# ii) in excess of Rs. 20 lakhs* * for those persons who have 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. The deduction of tax under this situation shall be at the rate of: a) 2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs during the previous year; or b) 5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year. # The threshold limit of Rs. 1 crore is increased to Rs. 3 crores if the withdrawal of cash is made by co-operative society. |
2
2/5 |
| Section 194-O: Payment or credit of amount by the e-commerce operator to e-commerce participant | 0.1 |
| Section 194P: Deduction of tax by specified bank in case of senior citizen having age of 75 or more | Tax on total income as per rate in force |
| Section 194Q: Payment for purchase of goods of the aggregate value exceeding Rs. 50 lakhs
Note: TDS is deductible on sum exceeding Rs. 50 lakhs |
0.1 |
| Section 194R: Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000
Note: Benefit or perquisite should be arising from business or the exercise of a profession by such resident. |
10 |
| Section 194S: Payment on transfer of Virtual Digital Asset
Note: No tax shall be deducted under this provision in the following circumstance:
Specified person means: (a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred; (b) An individual or a HUF who does not have any income under the head profits and gains of business or profession. |
1 |
| Section 194T: Payments of any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm.
Note: (1) This provision is effective from 01-04-2025 (2) No deduction if aggregate of such sum paid/payable does not exceed Rs. 20,000 during the financial year. |
10 |
| Any Other Income | 10 |
| 1.2 where the person is not resident in India*- | |
| Section 192: Payment of Salary | Normal Slab Rate |
| Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee. | 10 |
| Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever. | 30 |
| Section 194BA: Income by way of winnings from any online game | 30 |
| Section 194BB: Income by way of winnings from horse races | 30 |
| Section 194E: Payment to non-resident sportsmen/sports association | 20 |
| Section 194EE: Payment in respect of deposits under National Savings Scheme | 10 |
| Section 194F:Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India
Note: The provisions of this section are not applicable with effect from 01-10-2024 |
20 |
| Section 194G: Commission, etc., on sale of lottery tickets | 2 |
| Section 194LB: Payment of interest on infrastructure debt fund | 5 |
| Sec. 194LBA(2): Payment of the nature referred to in Section 10(23FC)(a) | 5 |
| Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b) | 10 |
| Section 194LBA(3): Payment of the nature referred to in section 10(23FCA) by business trust to unit holders | 30 |
| Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. | 30 |
| Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section 115TCA) | 10 |
| Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) | 5 or 4* or 9**
* In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC ** Where money borrowed from a source outside India by issuing a long-term bond or rupee-denominated bond on or after 01-04-2023, which is listed only on a recognised stock exchange located in an IFSC |
| Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor | 5 |
| Section 194N: Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office: | |
| i) in excess of Rs. 1 crore | 2 |
| ii) in excess of Rs. 20 lakhs* | 2/5 |
| * for those persons who have 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. The deduction of tax under this situation shall be at the rate of:
a) 2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs during the previous year; or b) 5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year. |
|
| Section 194T: Payments of any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm. | 10 |
| Note: | |
| (1) This provision is effective from 01-04-2025 | |
| (2) No deduction if aggregate of such sum paid/payable does not exceed Rs. 20,000 during the financial year. | |
| Section 195: Payment of any other sum to a Non-resident | |
| a) Income in respect of investment made by a Non-resident Indian Citizen | 20 |
| b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen, in respect of transfer which takes place: | 12.5 |
| c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112, in respect of transfer which takes place: | 12.5 |
| d) Income by way of long-term capital gains as referred to in Section 112A exceeding Rs. 1,25,000 in respect of transfer which takes place: | 12.5 |
| e) Income by way of short-term capital gains referred to in Section 111A in respect of transfer which takes place: | 20 |
| f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in sections 10(33), 10(36)], in respect of transfer which takes place: | 12.5 |
| g) Income by way of dividend from a unit in International Financial Services Centre | 10 |
| h) Income by way of dividend [Other than (g)] | 20 |
| i) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) | 20 |
| j) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern 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 sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India | 20 |
| k) Income by way of royalty [not being royalty of the nature referred to point h) above] payable by Government or an Indian concern in pursuance of an agreement made by it 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 a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy | 20 |
| l) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it 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 a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy | 20 |
| m) Any other income | 30 |
| Section 196A: Income in respect of units of non-resident | 20 |
| Section 196B: Income from units referred to in section 115AB(1)(i) | 10 |
| Section 196B: Long-term capital gain on transfer of units referred to in section 115AB, in respect of transfer which takes place: | 10 12.5 |
| Section 196C: Income by way of interest or dividends in respect of bonds or GDR referred to in section 115AC | 12.5 |
| Section 196C: Long-term capital gain arising from transfer of bonds or GDR referred to in section 115AC, in respect of transfer which takes place: | 10 12.5 |
| Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)
Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%. |
20 |
| Section 196D(1A): Income in respect of securities referred to in section 115AD(1)(a) payable to specified fund [referred to in clause (c) of Explanation to section 10(4D)] Note: Since recipient of income is a specified fund, surcharge & health and education cess shall be nil. |
10 |
| 2. In the case of a company- | |
| 2.1 where the company is a domestic company- | |
| Section 193: Interest on securities | |
| a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; | 10 |
| b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; | 10 |
| c) any security of the Central or State Government;
[i.e. 8% Saving (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018, Floating Rate Savings Bonds, 2020 (Taxable) or any other notified security] |
10 |
| d) interest on any other security | 10 |
| Section 194: Dividend | 10 |
| Section 194A: Income by way of interest other than “Interest on securities” | 10 |
| Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever. | 30 |
| Section 194BA: Income by way of winnings from any online game | 30 |
| Section 194BB: Income by way of winnings from horse races | 30 |
| Section 194C: Payment to contractor/sub-contractor | |
| a) HUF/Individuals | 1 |
| b) Others | 2 |
| Section 194D: Insurance commission | 10 |
| Section 194DA: Payment in respect of life insurance policy
w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out |
2 |
| Section 194EE: Payment in respect of deposit under National Savings scheme | 10 |
| Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India
Note: The provisions of this section are not applicable with effect from 01-10-2024 |
20 |
| Section 194G: Commission, etc., on sale of lottery tickets | 2 |
| Section 194H: Commission or brokerage | 2 |
| Section 194-I: Rent | |
| a) Plant & Machinery | 2 |
| b) Land or building or furniture or fitting | 10 |
| Section 194-IA:Payment on transfer of certain immovable property other than agricultural land | 1 |
| Section 194-IC:Payment of monetary consideration under Joint Development Agreements | 10 |
| Section 194J: Fees for professional or technical services:
i) sum paid or payable towards fees for technical services ii) sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; iii) Any other sum Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center. |
2
2 10 |
| Section 194K : Income in respect of units payable to resident person | 10 |
| Section 194LA: Payment of compensation on acquisition of certain immovable property | 10 |
| Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. | 10 |
| Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] . | 10 |
| Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section 115TCA) | 10 |
| Section 194M: Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.
Tax shall be deducted under Section 194M with effect from 1/09/2019 when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh. |
2 |
| Section 194N: Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office:
i) in excess of Rs. 1 crore ii) in excess of Rs. 20 lakhs* * for those persons who have 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. The deduction of tax under this situation shall be at the rate of: a) 2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs but not exceeding Rs. 1 crore during the previous year; or b) 5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year. |
2
2/5 |
| Section 194-O: Payment or credit of amount by the e-commerce operator to e-commerce participant | 0.1 |
| Section 194P: Deduction of tax by specified bank in case of senior citizen having age of 75 or more | Tax on total income as per rate in force |
| Section 194Q: Payment to resident for purchase of goods of the aggregate value exceeding Rs. 50 lakhs
Note: TDS is deductible on sum exceeding Rs. 50 lakhs |
0.1 |
| Section 194R: Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000
Note: Benefit or perquisite should be arising from business or the exercise of a profession by such resident. |
10 |
| Section 194S: Payment on transfer of Virtual Digital Asset
Note: No tax shall be deducted under this provision in the following circumstance:
Specified person means: (a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred; (b) An individual or a HUF who does not have any income under the head profits and gains of business or profession. |
1 |
| Any Other Income | 10 |
| 2.2 where the company is not a domestic company*- | |
| Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting of any form or nature whatsoever. | 30 |
| Section 194BA: Income by way of winnings from any online game | 30 |
| Section 194BB: Income by way of winnings from horse races | 30 |
| Section 194E: Payment to non-resident sports association | 20 |
| Section 194G: Commission, etc., on sale of lottery tickets | 2 |
| Section 194LB: Payment of interest on infrastructure debt fund | 5 |
| Section 194LBA(2): – Payment of the nature referred to in Section 10(23FC)(a) | 5 |
| Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b) | 10 |
| Section 194LBA(3): Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders. | 35 |
| Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. | 35 |
| Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section 115TCA) | 35 |
| Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) |
(Republished with amendments)
can i pay cash in a single day Rs50000/= as repairing charge for my car?
Thnx
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 ?
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.
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.
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??
should we deduct TDS on Corporation Tax?
Per Year (2013-14) Rs.104162 paid to Contract Basis person ok.How Much the TDS rate for TDS Deducted with Pan Card or Without pan card
Sir,
Pl. inform me about Capital Gain Tax.
P.G.Pandit
sir
TDS deducted without making a payment of bill. pl let us know how to claim the bill or procedure
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
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
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
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
Even I want to ask the same question that whether TDS is to be deducted on gross amount including service tax u/s 194J? Plz anyone?
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.
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 /
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.
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.
Sri Dilip Patel:
Sir,
Please go through section 37BA, that may help.
Thanks,
Anand Prakash Choudhary
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
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
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
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.
I want to know that if TDS wrongly deposit in other TDS Account, then how can I rectify?
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
Good write up, every tax payers should know about this TDS Mechanism .
CA, Subhash Chandra Podder ,FCA
Kolkata
13/10/2014
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
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.
My Question is can i deducte the Tds on
Purchases like Stationery and all office Materials.
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
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 ?
Declaration given by individual for submitting 15G require presence for verification or if he is NRI or living abroad.
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
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
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
We have need to pay 200000/- to government towards stall booking in abrod business fare. TDS is applicable or not ?
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
Whether, TDS is deducted on Maintenance of gardening of Guest house.( %)
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
in provisional cases tds paid on 4th may 2011 so what is the interest
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)
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)
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
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?
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.
I have not found the reply to my querry.
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.
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
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?
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