TDS Return

TDS Return

What is TDS ?

TDS (Tax Deducted at Source) is an indirect system of deduction of tax according to the Income Tax Act, 1961 at the point of generation of income. Tax is deducted by the payer and is remitted to the government by him on behalf of the payee.

A TDS Return is a quarterly statement which has to be submitted to the Income Tax Department of India. Submitting TDS Return is mandatory if you are a deductor. It has details of TDS deducted and deposited by you.

Who is Required to File TDS Return ?



It is the duty of the person who is making payment to someone for specified goods and services to deduct TDS and file TDS return. The specified payments include salaries, interests, commissions, brokerages, professional fee, royalty, contract payments, etc. The person who deducts TDS is called deductor and the person whose tax is being deducted is called deductee.

TDS is not required to be deducted by Individuals and HUF except for those whose accounts are required to be audited u/s 44AB i.e. whose gross receipts in preceding financial years in case of business is more than 2 crores (AY 2017-2018) or 1 crore ( AY 2016-2017) and in case of profession 50 lakhs ( AY 2017-2018) or 25 lakhs (AY 2016-2017).

Who is required to issue TDS certificates?

Every person deducting taxes as per provisions of section 203 is required to issue a certificate to the payee in respect of taxes deducted by him along with certain other particulars. This certificate is called TDS Certificate. Even banks deducting TDS on pensions issue TDS certificates.

Types of TDS certificate to be issued in different cases:

  • Salaries: Certificates is to be issued in Form 16 containing details of TDS Payments, taxes deducted at source and taxes calculated based on which TDS was estimated. The certificate should be issued within 31st May of next financial years.
  • Non Salary Payments:Certificate is to be issued in Form 16A containing details of payments and taxes deducted at source. The certificate should be issued within 15 days of due date of filing the returns.
  • TCS: Certificate to be issued in Form 27D contains the Tax Collected & Paid details.

Failure to issue certificate will result in penalty of Rs. 100 for every day the failure continues but limited to the TDS amount.

What are different type of TDS Form


Different types of TDS forms are as follows :-


Following table gives the types of payments, threshold limits and the rates at which TDS is to be deducted.

Section Particulars TDS Rates in % Threshold limits
192 Salary As per the rates of Income Slab As per the rates of Income Slab
192A Payment of accumulated balance of provident fund which is taxable in the hands of an employee 10 Rs. 50k
193 Interest on securities
a) Interest on Securities 10 Rs 10,000
b) Interest on Debentures; 10 Rs 5000
194 Dividend
(other than the listed companies)
10 Rs 10,000
194A Income by way of interest other than interest on securities

  1. For Bank
  2. For Senior Citizens
  3. For Others
10

  1. Rs. 40,000
  2. Rs. 50,000
  3. Rs. 5,000
194B Winnings from lotteries/ puzzles/card games. 30 Rs. 10,000
194BB Income by way of Winnings from horse races 30 Rs. 10,000
194C Payment to contractor/sub- contractor

a) HUF/Individuals

b) Others

 

1

2

Rs. 30,000
194D Insurance commission 5 Rs. 15,000
194DA Payment in respect of life insurance policy 1
194EE Payment of NSS Deposits 10 Rs. 2,500
194F Payment on account of repurchase of unit by Mutual Fund or Unit trust of India 20 Nil
194G Commission on sale of lottery tickets 5 Rs. 15,000
194H Commission or brokerage 5 Rs. 15,000
194-I Rent
a) Plant & Machinery
b) Land or building or furniture or fitting

2

10

Rs. 2.4 lakhs
194-IA Payment on transfer of certain immovable property other than agricultural land 1 Rs. 50 Lakhs
194-IB Payment of rent by individual or HUF not liable to tax audit 5 Rs. 50,000
194-IC Payment of monetary consideration under Joint Development Agreements 10
194J Any sum paid by way of

  1. Fee for professional services
  2. Fee for technical services
  3. Royalty,
  4. Remuneration/fee/commission to a director or
  5. For not carrying out any activity in relation to any business
  6. For not sharing any know-how, patent, copyright etc.
  7. or

    If payee call center

10
  1. 2
Rs. 30,000
194LA Payment of compensation on acquisition of certain immovable property 10 Rs. 2.5 lakh
194LBA Income distribution by a Business Trust u/s 115UA 10
194LBB Income distribution by a Investment Fund u/s 115UB 10
194LBC Income distribution by a Securitisation Trust u/s 115TCA 25% in case of Individual or HUF 30% in case of other individual
Any other Income 10

What are the due dates ?



Due dates of submission of quarterly TDS Return is 31st July for Q1, 31st October for Q2, 31st January for Q3, and 31st May for last quarter.