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)
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
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.
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?
Dear Sir,
Please reply to my queries on tds on rent pvt ltd company taken on rent from 1.11.2015@19200/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
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.
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
our school organize annual function , our management some event managment services highering whic rate tds applicable ( 194 C or 194J) ???. pLEASE help me
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…..
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 ? )
Hello,
What shall be the rate of tds in case of rent paid on Software Parks Pvt Ltd.
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.
I have got my clients TDS No. on 03rd. Dec. 2015 so from which he shall start cutting TDS
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
NoNo,TDS is deducted on income excluding S.T. since S.T is not income for u
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 ?
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.
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
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 )
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.
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
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
ss pandey consultancy services paid rs. 71652 ( amount rs. 70000 @ tds 7000) hot pass th entry in tally erp-9
Whether TDS Deducter can pay amount to Deductee in CASH after Deducting TDS ?
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?
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
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
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
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
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
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.
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
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
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.
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.
Dear Sir,
If foreign contractor work for rework of our job in his country. please consult that whether TDS is applicable or not?
I was taken Loan from Bank and i am paying interest on loan. kindly tell me any TDS applicable on interest amount….. urgent…
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
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
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)
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
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
IS Ttds appplicable for software upgradation by resident to resident ….????
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.
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
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
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)
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
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.
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.
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.