TDS Provision for FY 2019-20

Generally the person who earns the income pays tax on such income either in the form of advance tax or in the form of self-assessment tax. However in certain situations, the person making prescribed payments is required to deduct tax from such payments (at prescribed rates) and deposit the tax so deducted with the Government. Such form of tax deduction is called Tax Deduction at Source (TDS). The person who deducts the tax is called ‘deductor’ and the person whose tax is deducted is called ‘deductee’.

TCS is Tax Collected at Source in which seller collects the tax from buyers at the time of selling some prescribed goods. The person who collects the tax is called ‘collector’ and the person whose tax is collected is called ‘collected.

A seller collects the tax from buyers at the time of selling some prescribed goods. The person who collects the tax is called ‘collector’ and the person whose tax is collected is called ‘collectee’.

Every Person Deducting/Collecting tax at source is required to obtain a unique number called as Tax Deduction Account Number (TAN). The Number has to be quoted to the deductor/collector in every correspondence related to TDS/TCS. TAN is not mandatory in case of Tax Deduction Made on sale of immovable property.

1. Who is Liable to Deduct Tax at Source (TDS):

TDS is treated as pre-paid taxes as it is paid in advance to the government. It is the duty of the person who paid to someone for his service, goods etc. These payments are specified by the act like salary payment, interest on securities, contract payment, dividends etc. Who deduct TDS of payee is called deductor and whose tax is deducted called deductee. The following persons are liable to deduct TDS and deposit to government on behalf of deductee.

The following are the specified person who are liable to deduct TDS.

An Individuals or an H.U.F. is not liable to deduct TDS on such payment except where the individual or H.U.F. is carrying on a business/profession where accounts are required to be audited u/s 44AB, in the immediately preceding financial year.

All the companies and Partnership firms are liable to deduct TDS.

2. When To Deposit The Tax Deducted/Collected At Source To The Credit Of The Government?

Time of payment or credit	Due date of payment of TDS
When the income or amount liable to TDS is credited or paid during any month other than the month of March	Tax shall be deposited on or before 7 days from the end of the month in which the deduction is made.
When the income or amount liable to TDS is credited or paid during the month of March	Tax shall be deposited on or before 30″ April.

3. What Is The Form Of Tds/Tcs Certificate And What Should Be The Frequency For Issuance Of Tds/Tcs Certificate?

Particulars	Form No.	Frequency of Certificate
TDS certificate in respect of tax deducted on salary	Form No. 16	Annually
TDS certificate in respect of tax deducted on payments other than salary	Form No. 16A	Quarterly
TCS certificate	Form No. 27D	Quarterly

4. What Is The Frequency And Due Date Of Statement Of Tds/Tcs?

TDS Due Date of F.Y 2019-20 (Assessment Year 2020-21) for Return Filling:

Quarter	Period	Last Date of Filling
1st Quarter	1st April to 30th June	31st July 2019
2nd Quarter	1st July to 30th September	31st Oct 2019
3rd Quarter	1st October to 31st December	31st Jan 2020
4th Quarter	1st January to 31st March	31st May 2020

TCS Due Date of F.Y 2019-20 (Assessment Year 2020-21) for Return Filling:

Quarter	Period	Last Date of Filling
1st Quarter	1st April to 30th June	15th July 2019
2nd Quarter	1st July to 30th September	15th Oct 2019
3rd Quarter	1st October to 31st December	15th Jan 2020
4th Quarter	1st January to 31st March	15th May 2020

The seller contractor i.e. Deductor has to file a quarterly return in form 27EQ and in Form 27A and has to issue the TCS certificate to Deductee in Form 27D on or before following Due Date:

Due Dates for issuing TCS Certificate F.Y 2019-20 (Assessment Year 2020-21)

Quarter	Period	Last Date of Filling
1st Quarter	1st April to 30th June	30th July 2019
2nd Quarter	1st July to 30th September	30th Oct 2019
3rd Quarter	1st October to 31st December	30th Jan 2020
4th Quarter	1st January to 31st March	30th May 2020

5.   What Are The Consequences Of Tds/Tcs Defaults And Non-Payment To Government?

Failure to deduct tax or short deduction of tax or failure/delay in payment of the tax deducted to the credit of Government by the due date, would make the deductor an assessee in default in respect of such tax and also liable to penalty which is equal to the amount for which the assessee is a deemed defaulter.

In case of non-deduction/short deduction or delay in deduction of tax, interest @ 1% per month or part of the month is levied on the fix deductible amount and in case of delay in payment of tax after deducting, interest @ 1.5% per month or part of the month, till such time the tax deducted is not credited to the Government shall also be payable.

In case of delay in payment of tax after collecting, interest @1% per month or part of the month till such time the tax is not paid.

Failure on part of the deductor to pay the tax deducted at source, to the credit of Central Government makes him liable to rigorous imprisonment of a minimum period of three months but which may extend to seven years.

Late Filing Fee

Under Section 234E, you will have to pay a fine of Rs 200 per day (two hundred) until your return is filed. You have to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS.

For example, say that your payable TDS amount is Rs 5000 on 13th May and you pay it on 17th November (i.e. 189 days, counting 17th November). Then the calculation comes out to Rs 200 x 189 days = Rs 37800, but since this is greater than Rs 5000, you will have to pay only Rs 5000 as the late filing fee. Added to this, you also have to pay interest which is covered in the next section.

6. What Is The Duty Of Deductor/Collector If The Deductee Does Not Furnish His Pan?

If the deductee does not furnish PAN or furnishes incorrect PAN to the deductor/collector, the deductor/collector shall deduct tax at source at higher of the following rates:

(a) the rate prescribed in the Act; or

(b) at the rate in force, i.e.. the rate mentioned in the Finance Act; or

(c) at the rate of 20%.

7. Tds Rate chart applicable for Financial Year 2019-20

S.no	Section	Nature of Income	Amount over which TDS to be deducted	Rate of TDS
				If PAN is available	If PAN is not available
1	192	Salary	to be seen as per slab	Average Rate	30%
2	192A	Payment of accumulated balance due of Employees’ Provident Fund	if accumulated balance is more than 50000	10%	42.744%
3	193	Interest on securities	10,000	10%	20%
4	194	Dividend other than of 115-O	2,500	10%	20%
5	194A	Interest other than interest on securities
		– Interest received from Bank	40,000	10%	20%
		– Interest received from others	5,000
6	194B	Income by way of winnings from lotteries Puzzles	10,000	30%
7	194BB	Income by way of winnings horse race	10,000	30%	30%
8	194C	Payment to contractors/ Subcontractors	30000 one time	individual/HUF 1% Others 2%	20%
			100000 in whole year
9	194D	Insurance Commission	15,000	Other than company 5% Company 10%	20%
10	194DA	payment under Life Insurance Policy	100,000	5%	20%
11	194E	Payment to NR Sports Person	No Limit	20%	20%
12	194EE	Payment from National Savings Scheme	2,500	10%	20%
13	194F	Payments on account of repurchase of units by Mutual Fund	No Limit	20%
14	194G	Commission on sale of lottery tickets	15,000	5%	20%
15	194H	Payment of Commission or Brokerage	15,000	5%	20%
16	194-I	Payment of rent
		– For Land, building or furniture.	2,40,000	10%	20%
		– For plant and machinery or equipment		2%
17	194 IA	Payment on transfer of certain immovable property other than agricultural land	5,000,000	1%	20%
18	194 IB	Payment of rent by individual/HUF other than those covered under 44AB	50000 p.m	5%		20%
19	194 iC	Payment of Consideration (not being in kind) under Joint Development Agreement	No Limit	10%		20%
20	194J	Fees for professional or technical services
		– Normally in all cases	30,000	10%	20%
		– person engaged only in the business of operation of call center (w.e.f 01/06/2017)		2%
21	194LA	Payment of compensation on acquisition of certain immovable property	250,000	10%	20%
22	194LB	Income by way of interest from infrastructure debt fund to a non-resident or Foreign Co.	No Limit	5%	20%
23	194LBA	Certain income from units of a business trust
		– Payment to resident	No Limit	10%	20%
		– Payment to Non-resident		5%	20%
24	194LBB	Income in respect of units of investment fund
		– Payment to resident	No Limit	10%	20%
		– Payment to Non-resident		30%
25	194LC	Income by way of interest from Indian company	No Limit	5%	20%
26	194LD	Income by way of interest on certain bonds and Government securities	No Limit	5%	20%

(Republished with Amendments)