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)
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
if salary paid in cash then tds is applicable? if applicable, why and what percentage?
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
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???
what section code to be used while uploading csv file. to apply form 13?
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
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 ?
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
is there is TDS on Educational Fees paid to a Foreign Institute
is there is TDS ON THE FOREIGN
is there is any tds on foreign educational fees
Tds was deducted on fixed deposit which was in the name of state govt dept.@20% 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
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.
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?
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.
If I made any transactions before TAN generation than will those transactions have liability to pay TDS.
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
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.
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
It is a good article on TDS provisions of the Income tax Act. It is very useful article even for layman.
Very good and comprehensive article of all the key issues.
Thanks for sharing
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
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 ?
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.
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.
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
if my interest income is Rs300000and tax payable is Rs 2500 but TDS deducted isRs 30000 is it correct
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
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.?
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 ?
The matter is educative BUT ONE POINT IS MISSED , Please reply at anilneeru2001@yahoo.com
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 ??
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
Sir we have taken business loan from capital first limited can be deduct the TDS under NBFC
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.
IF TDS LIMIT IS NOT CROSSED SO CAN I SAW AMOUNT IN THE RETURN
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.
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
hi
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??
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 ?
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
Sir shall we have to pay interest/penalty if State Govt declares holiday on 7th of any month – TDS deposit date ?
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
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.
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
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.
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?
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
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
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?