I have covered only relevant compliances/information useful for Small Manufacturer, Traders only through this article which includes TDS Rate, TDS Return, TDS Certificate  and TDS payment due dates, Advance Tax due dates, Income Tax Return Due Dates, Penalty for Late Return Filing, Important Income Tax Deductions, Presumptive Taxation Scheme, Tax Audit and Maintenance of Books.

Compliance

A) TDS Compliances:-

S.No. Nature of Payment Amount over which TDS to be Deducted IF PAN Available If PAN Not Available
1 Payment of Salary Average Rate of Tax 20%
Payment to Contractor/Sub Contractor (Sec 194C) Rs.30,000/- One Time and Rs. 1,00,000/- in whole year. Individual/HUF 1% (Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 0.75%)

Others 2% (Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 1.50%)

20%
2 Payment of Commission/Brokerage (194H) Rs. 15,000/- 5%

(Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 3.75%)

20%
3 Payment of Rent (194I)

 

Rs.2,40,000 Per year 10% for Land/Building/Furniture

(Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 7.50%)

 

2% Plant Machinery/Equipments

(Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 1.50%)

20%
4 Payment to professional/technical services (194J) Rs.30,000/- a) Cases, wherein, the payee is engaged in the business of the operation of Call Centre only (effective from 1st June 2017) – 2% (Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 1.50%)

 

b) b) In case of fees for technical services (not being a professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film) (effective from 1st April 2020) – 2% (Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 1.50%)

 

c) c) Professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film – 10% (Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 7.50%)

 

d) d) In case of fees for any other professional services – 10%  (Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 7.50%)

20%
5 Payment of Interest (194A) Interest other than interest on securities – Others – Rs. 5,000 10% (Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 7.50%) 20%
Banks / Co-operative society engaged in business of banking / Post Office – Rs 40,000 10% (Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 7.50%)
Senior citizen

The interest amount should be earned from the following:

·      Deposits with banks;

·      Deposits with post offices

·      Fixed deposit schemes

·     Recurring deposit schemes

Limit – Ras 50,000

10% (Due to COVID -19, From 14 May 2020 to 31 March 2021 – Rate will be 7.50%)

B) TDS Challan/Returns-

TDS /TCS Return Tax Deposit Date Return Due Date TDS Certificate Issuance Date
TDS return for Salary (Form 24Q) 7th Day after end of  every Month In case of March: 30th April  Last day of Month  after end of every quarter, In case of March, 31st May After 15 Days from due date of filling of TDS Return.
TDS return for Other than Salary (Form 26Q) Same Same Same
TCS return (Form 27EQ) Same 15th day of Month after end of every quarter, In case of March, 15st May Same

Late Fee Rs. 200/- per day as per Section 234E

Important Note:

Due to COVID -19 the due dates of TDS and TCS return filing for FY 2020-21 has been extended, which are as follows:

Period Due Date
Q1 – 1st April to 30th June 31st March 2021
Q2 – 1st July to 30th September 31st March 2021
Q3 – 1st October to 31st December 31st Jan 2021
Q4 – 1st January to 31st March 31st May 2021

C) Advance Tax :-

In case of All Assesses (If Tax Liability > Rs. 10,000)

Due Date Advance Tax Liability to be Discharged.
On or before 15th June 15% of Advance Tax Liability
On or before 15th Sep 45% of Advance Tax Liability
On or before 15th Dec 75% of Advance Tax Liability
On or before 15th March 100% of Advance Tax Liability

Note: Advance Tax Liability is also Applicable for opting presumptive Taxation Also.

D) Income Tax Return Due Date:-

Income Tax Return Due Dates:

S No Particulars Due Date
1 Corporate Assessee 30th September
2 Non Corporate Assessee (Audit Case) 30th September
3 Working Partners of Audited Firms 30th September
4 Other Assessee(Salaried, House Property, Interest Income, Capital Gain, Other Sources, Business & professional Non Audit Case. 31st July

Please note that due to COVID-19 pandemic, the due dates of AY 2020-21 has been extended the revised dates are as under:

Assessee who are required to get its accounts audited under the Income-tax Act or under any other law – 31st October, 2020

Assessee who is required to furnish a report in Form No. 3CEB under section 92E – 31st October, 2020

In any other case – 30th November, 2020

Penalty for Late return Filling:-

If a person fails to furnish return before due date, the assessing officer may levy a penalty u/s 271F as follows:

Date of Filing Fees Leviable
If the return is furnished after the due date of filing but on or before the 31st day of December. Five thousand rupees
In any other case  Ten thousand rupees
Note: If the total income of the person does not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees.

E) Important Deductions:-

a)_ Section 80C :-

Apart from LIC, PPF, Housing Loan Principal repayment, Five year Fixed Deposits, EPF, following additions were also made under Section 80C:-

  1. Sukanya Samriddhi Yozna
  2. National Pension Scheme (Rs. 50,000/- Additional Deduction)
  3. 20% of Gross Total Income may be contributed in NPS (Earlier it was 10%).

b) Deduction u/s 80D

  • In case of the individual, Rs. 25,000 for himself and his family
  • If individual or spouse is 60 years old or more the deduction available is Rs 50,000
  • An additional deduction for insurance of parents (father or mother or both, whether dependent or not) is available to the extent of Rs. 25,000 if less than 60 years old and Rs 50,000 if parents are 60 years old or more.
  • For uninsured super senior citizens (80 years old or more) medical expenditure incurred up to Rs 50,000 shall be allowed
  • A deduction of Rs. 5000 will be allowed under this section for payment of preventive health check-up of either the individual himself or his family members which includes spouse, parents and dependent children.This deduction is NOT in addition to the deduction of Rs.25000/50000 stated above, but is included in the above deduction.

c) Section 80EE –

Dedution amounting to Rs 50,000 is allowed in addition to deduction under section 24(b).

  • The loan should be sanctioned between 1stApril 2016 – 31st March 2017.
  • The value for the property should not exceed Rs 50 lacs and the sanctioned loan amount should not exceed Rs 35 lacs.
  • The purchaser should be a first time home buyer also this is applicable only in case of residential house property.
  • The benefit will be applicable till the time of repayment of loan continues.

 d) Section 80EEA –

Additional deduction amounting to Rs 1,50,000 is allowed in addition to deduction under section 24(b).

  • The loan should be sanctioned between 1stApril 2019 – 31st March 2020.
  • The stamp duty value of the house should not exceed Rs 45 lacs.
  • The carpet area of the house should not exceed 60 sqmtr in metro cities and 90 sqmtr in other cities.
  • Only the individual is allowed to claim the deduction under this section provided he does not own any other house property.

e) Section 80E:-

  • Deduction is available to Individual Not HUF
  • Deduction of Interest on Education Loan
  • Deduction is available for higher studies after passing SSC
  • Deduction is available for Eight years
  • Loan is not only tuition fee or college fee but incidental charges also.
  • Loan should be taken for spouse or children
  • Vocational courses are also covered under this section

f) Section 80TTA:

This deduction in respect of interest on deposits in the savings which is available for Resident Individual or HUF (other than those assessee who has covered in Section 80TTB) and Maximum deduction of Rs. 10,000/- will be allowed under this section

g) Section 80TTB:

This deduction in respect of interest on deposits in case of senior citizens (a resident individual who is of the age of sixty years or more at any time during the relevant previous year) and Maximum deduction of Rs. 50,000/- will be allowed under this section

f) Presumptive Taxation Scheme:-

44AD If Turnover < 2 Crore 8%/ 6% if payment received through cashless mode
44ADA (Legal, Medical, Profession of Accountancy, Architectural ,technical Consultancy, Interior Decorator) If Turnover < 50 Lacs 50%
44AE 7500/- per vehicle for transporters

Note:-

  1. A person can opt out any time from presumptive taxation scheme, but once he has opt out from presumptive taxation, he can not avail the benefit for next 5 years.
  2. Not Applicable on Company Assessee

G) Accounting/Auditing:-

  • Section 44AA – Books of Accounts mandatory to be maintained if Income is Rs. 2, 50,000 and turnover is Rs 25 Lacs or more.
  • Penalty of Rs 25,000 u/s 271A will be levied if Books of accounts are not maintained.
  • Tax Audit is mandatory if Turnover exceeds Rs 1 Crore for business and For Professional if receipts exceeds Rs 50 Lacs

Note:- These Compliances are compiled based on day to day need of Small Traders, Manufacturers/Businessman. These are not exhaustive list of compliances/information. Only I have tried to cover relevant information based on my past experience. This article is only for information. Please refer act/rules before taking any decision.

Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru)

Author Bio

Qualification: CA in Practice
Company: PANKAJ MAHAVIR & CO
Location: ROORKEE, Uttarakhand, IN
Member Since: 09 Feb 2019 | Total Posts: 2

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10 Comments

  1. J V Rao says:

    in case of sale of house site in 2019, if the purchase date is prior to year 2000{say 1987) what cost index we have to consider for calculating long term capital gains?

  2. SA ANSARI says:

    80000 is contributed to nps out of my salary by my employer. I have contributed more than RS 150000 to other schemes which qualify rebate under 80c. Can I avail 50000 additional rebate of nps.?

  3. pvati says:

    For a pan holder, a tailor, having only income from occupation under Rs.3 lacs during FY 2015-16, by which time he can file return & which ITR -1 or ITR-4? Urgent pl.

  4. Animesh Kumar Jain says:

    I think these dates should be checked once..

    Belated Return 139(4) for FY 2016-17 can be filed upto 31.08.2018 only.
    (Should be 31.03.2018)

    Original/Belated Return for FY 2016-17 can be revised upto 31/03/2019 [139(5)
    (Should be- 31/03/2018)

    Please correct me if i wrong !!

  5. Alagappan R says:

    Sir,
    As per Finance Act 2017, the threshold turnover u/s 44 AB for persons carrying on business has been increased to 2 Crores with effect from AY 2017-18.

  6. Pratibha Goyal says:

    In case of payment to contractor/sub-contractor has been increased to Rs 100,000 with effect from AY 2016-2017

  7. NARENDER KUMAR THAKUR says:

    From A/Y 2018-19 -What is the change in tax treatment for making donation to Akshaya Patra /Help Age India (earlier 100% exempted u/s 80GGA) and likewise how much deduction is available u/s 80G. It would be very kind of you to refresh/specify qualifying limit of donation u/s 80G with reference to GTI.

  8. Dharmendra sharma says:

    Thank You Sir for important informations.
    Don’t mind but there are two corrections in informations given above:-
    1) Overall limit of section 194C is now 100000 from last budget which used to be 75000.
    2) Due date of payment of TCS is 7th for March month also (Rule 37CA).You have mentioned it 30th April.

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