Article explains What is TDS, Who are required to file TDS Return, Due dates of payment and Filing of Forms, Consequence of non-filing of TDS Returns, Interest on late deposit of TDS and TDS rates for F.Y.2022-23.

1. (TDS) Tax Deducted at Source is a specific amount that is deducted when a certain payment like salary, commission, rent, interest, professional fees, etc. is made.

2. WHO ARE REQUIRED TO FILE TDS RETURN?

Assessee liable to deduct TDS under  Income Tax Act, 1961 are responsible for filing return of income . The person who deducts TDS is called deductor and person whose TDS is deducted is called deductee. Deductor is responsible to file TDS returns with Government.

The glimpse of mostly used sections under which TDS is required to be deducted, threshold limit and rate of TDS is as follows-

Section 192 

DUE DATES OF PAYMENT AND FILING OF FORMS :

QUARTER ENDING MONTH OF DEDUCTION DUE DATES OF PAYMENT DUE DATES FOR FILING OF TDS RETURN
30th June, 2022

 

April 2022 7th May,2022  

31st July,2022

May 2022 7th June,2022
June 2022 7th July, 2022
30th September,2022 July,2022 7th Aug,2022  

31st Oct,2022

Aug,2022 7th Sep,2022
Sep,2022 7th Oct,2022
31st Dec,2022 October,2022 7th Nov,2022  

31st Jan,2023

November,2022 7th Dec,2022
December,2022 7th Jan,2023
31st March,2023 Jan,2023 7th Feb,2023  

 

31st May,2023

Feb,2023 7th Mar,2023
Mar,2023 7th April,2023

(GOVT EMPLOYEE)

30TH April,2023

(Others)

4. CONSEQUENCE OF NON-FILING OF TDS RETURN

Penalty of Rs. 200 each day till the return is filed. However Total Liability should not be greater than the TDS Amount.

The Assessing Officer may direct a person who fails to file the statement of TDS/TCS within the due date to pay a minimum penalty of Rs 10,000 which may be extended to Rs 1 Lakh.

5. INTEREST ON LATE DEPOSIT OF TDS:

SECTION NATURE OF DEFAULT INTEREST SUBJECT TO TDS/TCS AMOUNT PERIOD FOR WHICH INTEREST IS TO BE PAID
201(1A) TDS Not Deducted 1% per Month From the date on which tax is deductible to the date on which tax is actually deducted.
201(1A) TDS not deposited to the government after deduction (fully or partly) 1.5% Per Month  

From the date of tax deduction to the date of deposit

6. TDS RATES FOR F.Y. 22-23

Nature of Payment Made To Residents

 

 

 

Threshold (Rs.)

Company / Firm /Co-operative Society /Local Authority  

Individual / HUF

 

If No / Invalid PAN

Section – Description  

IT Rate (%)

IT Rate (%) IT Rate (%)
192A – Payment of accumulated balance due to an employee.(applicable from 01.06.2015) 50,000 10 30
193 – Interest on securities 10,000 10 10 20
194 – Dividends 5,000 10 10 20
194A – Interest other than interest on securities – in any Others Case 5,000 10 10 20
194A – Senior citizen 50,000 10 20
194B – Winning from Lotteries 10,000 30 30 30
194B proviso – Winnings from lotteries and crossword puzzles where consideration is made in kind or cash is not sufficient to meet the tax liability and tax has been paid before such winnings are released (Applicable From 01-July-2022) 10,000 30 30 30
194BB – Winnings from Horse Race 10,000 30 30 30
194C – Payment to Contractors 1,00,000 2 1 20
194IC– Payment under Specified agreement 10 10 20
194D – Insurance Commission 15,000 10 5 20
194DA – Payment in respect of life insurance policy (applicable from 01.10.2014) 1,00,000 5 5 20
194E – Payment to Non-Resident Sportsmen or Sports Association 20 20 20
194EE – Payments out of deposits under NSS 2,500 10 10 20
194F – Repurchase Units by MFs 20 20 20
194G – Commission – Lottery 15,000 5 5 20
194H – Commission / Brokerage 15,000 5 5 20
194I – Rent 2,40,000 10 10 20
194I(b)-Land and Building/Furniture/Fittings
194I(a) – Plant/Machinery/Equipment 2,40,000 2 2 20
194IA – Transfer of certain immovable property other than agriculture land (w.e.f. 1-6-2013) 50,00,000 1 1 20
194J – Fees for Professiona/Technical Services 30,000 10 – Others

 

2 – Fees for Technical Services (not being professional services), royalty for sale, distribution or exhibition of cinematographic films and call centre

10 – Others

 

2 – Fees for Technical Services (not being professional services), royalty for sale, distribution or exhibition of cinematographic films and call centre

 

 

 

 

20

194K – Payment of Dividend by Mutual Funds (Applicable From 01-Apr-2020) 5,000 10 10 20
194LA – Immovable Property 2,50,000 10 10 20
194LB – Income by way of interest from infrastructure debt fund (non-resident) 5 5 20
194LBA – Certain income from units of a business trust to Residents
194LBA (a) – Certain Income in the form of interest from units of a business trust to a residential unit holder 10 10 20
 

194LBA (b) – Certain Income in the form of dividend from units of a business trust to a resident unit holder

10 10 20
 

194LBA – Certain income from units of a business trust to Non Resident :-

 

194LBA(1) – Payment of the nature referred to in Section 10(23FC)(a)

5 5 20
 

194LBA (2) – Payment of the nature referred to in Section 10(23FC)(b)

10 10 20
 

194LBA (3) – Payment of the nature referred to in section 10(23FCA) by business trust to unit holders

 

 

 

 

 

40% – For Non Residents Company

30% – For Non Residents other than companies

 

30 30/40
194LBB – Income in respect of units of investment fund.  

10% – For Residents

40% – For Non Residents Company

30% – For Non Residents other than companies

 

 

25% – For Residents

30% – For Non Resident

 

25/30/40

 

Sec 194LBC – Income in respect of investment in securitisation trust. 10% – For Residents

40% – For Non Residents Company

30% – For Non Residents other than companies

25% – For Residents

30% – For Non Resident

 

 

25/30/40

 

Sec 194LC – Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan /long-term infrastructure bonds from outside India (applicable from July 1, 2012)  

5 or 4*

 

* In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC

 

5 or 4*

 

* In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC

 

 

 

 

20

 

194LD – Interest on certain bonds and govt. Securities(from 01-06-2013)

 

 

 

 

5

 

 

5

 

 

20

 

194N – Payment of certain amounts in cash.

 

Withdrawal in Excess of Rs. 1 Cr.

2 2 20
 

194NF – Payment of certain amounts in cash to non-filers

 

 

1. Withdrawl Exceed 20 Lacs but does not exceed 1 Cr.

 

2. Withdrawl Excess 1 Cr.

 

 

2% – Exceed 20 Lacs but does not exceed 1 cr.

 

 

5%-Withdrawl in Excess of Rs. 1 cr.

 

2% – Exceed 20 Lacs but does not exceed 1 cr.

 

 

5%-Withdrawl in Excess of Rs. 1 cr.

 

 

 

20

 

194O – TDS on e-commerce participants (Applicable From 01-Oct-2020) 500000 (Individual /HUF) 1 1 5
194P – TDS in case of Specified Senior Citizen Not Applicable Rates in Force
194Q – TDS on Purchase of Goods exceeding Rs. 50 Lakhs (Applicable From 01-July-2021) In Excess of Rs. 50 Lakhs 0.1 0.1 5
194R – TDS in case any benefit or perquisite (arising from business or the exercise of a profession) is provided (Applicable From 01-July-2022) 20000 10 10 20
First Proviso to sub-section (1) of section 194R– TDS in case any Benefits or perquisites of business or profession where such benefit is provided in kind or where part in cash is not sufficient to meet tax liability and tax required to be deducted is paid before such benefit is released( Applicable From 01-July-2022) 20000 10 10 20
194S– TDS on payment on transfer of Virtual Digital Asset ( Applicable From 01-July-2022) 10000 1 1 20
Proviso to sub-section(1) of section 194S– TDS on Payment for transfer of virtual digital asset where payment is in kind or in exchange of another virtual digital asset and tax required to be deducted is paid before such payment is released ( Applicable From 01-July-2022) 10000 1 1 20
194O – TDS on e-commerce participants (Applicable From 01-Oct-2020) 500000 (Individual /HUF) 1 1 5
194P – TDS in case of Specified Senior Citizen Not Applicable Rates in Force
Sec 195 – Other Sums Average rates as applicable 20/30/40
Sec 196A – Foreign comp unit holder of MF  

* 20

 

* Not Applicable for company

 

 

 

20

 

 

 

 

20

 

 

 

Sec 196B – Income from units 10 10 20
Sec 196C – Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend) 10 10 20
Sec 196D – Income of Foreign Institutional Investors/ Specified Fund :-
Sec 196D – Income of foreign institutional investors from securities under sub-section (1) 20 20 20
Sec 196DA – Income of specified fund from securities referred to in clause (a) of sub-section (1) of section 115AD (other than interest income referred to in section 194LD) 10 10 20

7. OUR COMMENTS-

The provisions of TDS are expanding to increase tax base and bring into radar high earning and spending individuals who are not paying taxes. The TDS provisions are introduced for dual purpose, firstly, to put an eye on transactions and secondly is to collect revenue from the very source it gets originated. The income tax department also sends notices if amount of income and TDS deducted thereon reflecting in Form 26AS does not matches with income declared in return. It is therefore necessary to reconcile the same while filing return of income. At Financial Tree Company we take care of these very steps while filing return of income to avoid notices from department.   

******

The above comments do not constitute professional advice. The Author can be reached at companyfinancialtree@gmail.com or call us on 9111872247 or visit website www.financialtreecompany.com. My name is Priyanka Agrawal and I am Tax Consultant at FINANCIAL TREE COMPANY (An online return filing and Tax Consultancy Company). I have years of experience in field of Income Tax and Finance.We also upload educational videos in You tube and name of our channel is FINANCIAL TREE COMPANY. Our aim is to help people in improving their financial health by spreading knowledge and love. Stay Financially Fit and Healthy.

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Qualification: CA in Practice
Company: www.financialtreecompany.com
Location: Bhilai, Chhattisgarh, India
Member Since: 30 May 2019 | Total Posts: 45
FINANCIAL TREE COMPANY PROVIDES BEST POSSIBLE TAX SOLUTIONS AT REASONABLE RESOURCES AND TIME TO MEET CLIENT SATISFACTION AND NEED. website-www.financialtreecompany.com Contact No. 9111872247 Email ID- companyfinancialtree@gmail.com (AN ONLINE RETURN FILING AND TAX CONSULTANCY COMPANY) View Full Profile

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One Comment

  1. CA. Lakshmanan M says:

    How the author can be FINANCIAL TREE COMPANY and also a CA in Practice? If CA in Practice, then open invitation (Advertisement) to viewers for providing tax solutions is against ‘Code of Ethics’.

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