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Provisions for Deposit of tax, Credit of TDS, TDS Certificate, TAN and Time Limit for Deposit of Tax

Deposit of Tax -Where tax has been deducted under Sections 193,194,194A,194B,194BB, 194C, 194D, 194E,194EE, 194F, 194G, 194H, 194I, 194J, 194K, 194LA, 195, 196A, 196B, 196C and 196D, it is duty of the person deducting tax at source to deposit the amount of tax so deducted within the prescribed time in any branch of Reserve Bank of India or State Bank of India or any authorised bank accompanied by prescribed Income-tax challans as per the time limit and mode specified in Rule 30.

DEPOSIT OF TAX AND CREDIT OF TDS

1.  Deposit of Tax -Where tax has been deducted under Sections 193,194,194A,194B,194BB, 194C, 194D, 194E,194EE, 194F, 194G, 194H, 194I, 194J, 194K, 194LA, 195, 196A, 196B, 196C and 196D, it is duty of the person deducting tax at source to deposit the amount of tax so deducted within the prescribed time in any branch of Reserve Bank of India or State Bank of India or any authorised bank accompanied by prescribed Income-tax challans as per the time limit and mode specified in Rule 30.

2.  Credit of TDS –Where taxes have been deducted at source from any payment of income receivable by an assessee, the amount of tax deducted at source would be included in the income of the assessee while computing the income of the assessee and would be deemed to be the income received (S.198). Further, credit will be given to the assessee while calculating the net tax payable by him and the tax deducted at source will be treated as a payment of tax on his behalf.(i.e. to the Central Government by the payer who has deducted the tax at source) (S.199).

3.  TDS Certificate –A certificate is prescribed u/s 203, which is to be issued by person deducting tax at source. Every person deducting tax is duty bound to furnish this certificate to the person from whose income/ payment the tax has been deducted. The certificate should specify the amount of tax deducted and rate at which it is deducted.(Form No. 16A, under Rule 31). On production of this certificate, credit u/s 199, for tax paid, will be given to the person, from whose income the tax has been deducted, in his income-tax assessment for the assessment year in which the income (or payment) is assessable.

Time Limit for Furnishing of TDS Certificate

Sl. No. Form No. Periodicity Due date
(1) (2) (3) (4)
1. 16 Annual By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted
2. 16A Quarterly Within fifteen days from the due date for furnishing the statement of tax deducted at source under rule 31A.

4.  Tax Deduction Account Number (TAN) – A person deducting tax at source, if not already allotted a TAN(or a tax deducation and collection account number) should apply for allotment of TAN in Form No. 49B. The application has to be made in duplicate to the Assessing Officer (AO) or to any particular Assessing Officer where this duty is assigned by the Chief Commissioner or the Commissioner to that A.O. The application should be made within one month from the end of the month in which the tax is deducted for the first time.

TAN should be quoted in all the TDS Certificates, challans, quarterly statements, correspondence, etc. Non compliance with the provisions of Section 203A may lead to rigorous imprisonment for a term not less than 3 months but which may extend to 7 years and with a fine of Rs.10,000/-.

Reference Section 203 A, Rule 114 A and Rule 11 4AA.

5.  Time Limit for Deposit of Tax – Section 200 provides that any person, who has deducted any sum at source as provided in Sections 192 to 196D, is obliged to pay the tax deducted at source to the credit of Central Government.

Rule 30 of the Income-tax rules lays down the time and the mode of the payment of the tax deducted at source to the Government Account. Wherein the deduction is by or on behalf of  the Government, it has to be credited to the Central Govt. Account on the same day.

In other cases as per provisions as under :

i) In respect of sums deducted u/s.193,194A (interest on securities), S.194C (payment to contractors and sub-contractors),Sections 194D,1 94E, 194G, 194H,1 94I, 194J,195,196A,196B,196C, and 196D it has to be credited within one week from the last day of the month in which deduction is made. However time limit for deposit of TDS for the entire month of March is rationalized to 30 April instead of two separate time limits viz. 7 April for TDS up to 30 March and 31 May for TDS as of 31 March w.e.f. 01.04.2010 Notification No. 41/2010 dated 31 May 2010. 

ii) In any other case the sum deducted at source is to be credited to the Central government account within a week from the last day of the month in which deduction is made.

Time limit for Deposit of Tax at Source

Nature of payment Relevant Section  Due date of deposit
Interest on securities 193   
Interest other than ‘Interest on securities’ 194A   
Payments to contractors and subcontractors 194C   
Insurance Commission 194D   
Payment to non-resident sports men or sports association 194E   
Commission, remuneration or prize on lottery tickets 194G  Within one week from the last day of the month in which the deduction is made. However  time limit for deposit of TDS for the entire month of March is rationalized to 30 April.
Commission, brokerage, etc. 194H
Rent 194-I
Fee for professional or technical services, royalty, sum under section 28(va) 194J 
Interest or other sum referred to in Section 195 195
Income in respect of units of mutual  fund or of the Unit Trust of India payable to non-resident 196A
Income on units referred to in section 115AB or by way of long-term capital gains arising on transfer of such units 196B
Income from foreign currency bonds or shares of Indian Companies 196C  
Income on securities referred in section 115AD(1)(a) 196D  
Salaries 192 Within one week from the last day of the month in which the deduction is made (In case of tax paid under section 192(1A), within one week from the last day of each month on which tax is due under section 192(1B). 
Dividends 194
Winnings from lottery or crossword puzzle 194B
Winnings from horse race 194BB
Payments in respect of deposit  made under National Savings Scheme 194EE/80CCA(i)
Repurchase of units by mutual fund or Unit Trust of India 194F
Income in respect of units 194K
Compensation on acquisition of immovable property 194LA  

 

* In the case of deduction by or on behalf of the Government, tax deducted should be deposited on the same day.

* The Assessing Officer may, in special cases, and with the approval of the Joint Commissioner, –

Notwithstanding anything contained in sub-rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table:-

Table

Sl. No. Quarter of the Financial Year ended on Date for quarterly payment
(1) (2) (3)
1. 30th June 7th July
2. 30th September 7th October
3. 31st December 7th January
4. 31st March 30th April.
Categories: Income Tax

View Comments (3)

  • 1)MEANING OF THE FOLLOWING LINE IS NOT CLEAR:-

    However if the income/sum is credited to the account of the payee as on the date up to which accounts of the payers are made, then within two months of the expiry of the month on which the date falls

    2) YOU HAVE GIVEN THAT TDS CERTIFICATE ARE NOT REQUIRED TO BE FURNISHED BUT IN TAXMANN'S BOOK NEW DATES ARE GIVEN

  • My employer deducted the Income Tax due from me, during the Fin Year 2010-11,  but it seems he did not file the Form 16 A, and now the Income Tax authorities are asking me to pay     the   tax ( which I already paid !) What is to be done ?

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