Personal & Corporate Tax

  What TDS Means? TDS Means Tax Deducted At Source i.e. income is taxed at the point of it’s generation itself. TDS is a retaining part of income (which you receive) as tax and depositing it with the Income Tax Department on your behalf. TDS can also be commonly said as Withholding Tax. Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) is one of the essential concepts of the Income Tax Act 1961. Every registered assesse, who is liable to deduct TDS or TCS shall collect/deduct tax and the same will be deposited within the prescribed time limit as per the Government. BASIC GUIDELINES FOR ASSESSEE LIABLE TO DEDUCT TDS/TCS: 1. He shall quote the Tax Deduction/ Collection Account Number on all the documents pertaining to TDS/ TCS. 2. He shall collect or deduct the tax amount as per the applicable rate. 3. He shall file TDS or TCS return periodically 4. He shall issue a TDS or TCS certificate in respect of the tax amount deducted or collected. Type of Assesses: Compulsion of filing TDS return electronically is applicable on the following class of assesses:- 1. All corporate Deductors as well as Collectors 2. All govt. Deductors as well as Collectors 3. Where deductor / collector is required to get their accounts audited u/s 44AB of Income Tax Act , 1961 in the immediately preceding financial year. 4. Where the no of deductees/ collectees record in a quarterly statement for one quarter of the immediately preceding FY is equal to or greater than 20. All other Assesses other than mentioned above can furnish their TDS return either in physical format or electronic format. TDS Deductor: who deducts a specified amount as TDS from the amount which is to be given to the receiver/ payee/ deductee. Deductor is also referred as Payer (because he/she deposits this part of tax to the government on payee’s behalf). TDS Deductee: whose money is deducted and deposited on his/her behalf to the government by the Deductor. Deductee is also commonly referred as Payee. When TDS is to be deducted? The deductor (payer) is required to deduct tax, which are: • At the time of making payment, or • At the time of credit of income to the account of payee (receiver) or actual payment (in cash, cheque, draft or other mode), Note: In some sections, TDS liability arises only at the time of payment and in the rest it happens according to the payment or credit whichever is earlier. Scheduled date of depositing TDS amount with the government: Deductor deduct the TDS amount, and same is required to deposit with the government within a specified time and this process is called making TDS payment. The amount of TDS is deposited by Deductor through TDS Challan (ITNS) No. 281 by TIN-NSDL Website. The Tax Deducted at Source must be deposited to the government by 7th of the subsequent month. Consequence on late Payment of TDS/TCS: As Per section 201A, defaulter has to pay late fees along with interest- Reason of default Interest Rate Default period When TDS is not deducted at source(in whole or in part) 1% per month From the due date to the date when tax is actually deducted. When TDS is deducted and not deposited with government(in whole or in part) 1.5% per month From the date of deduction to the date of payment. What is TDS Return? TDS Return is the summary of statements which have details of TDS Collected by the Deductor and deposited with the government. Along with details like PAN No of both party and all details of TDS paid to government and deposited TDS challan information. The type of TDS Return Form is based on the Nature of Income of the deductee or the type of deductee who pays the TDS. Types of TDS Return Form Particulars Submission of Return Quarter Due date Form 24Q TDS Deducted from Salary Quarterly 1st quarter 31st july of FY 2nd quarter 31st October of FY 3rd quarter 31st January of FY 4th quarter 31st may of FY Form 26Q TDS on all payments other than Salary Quarterly 1st quarter 31st july of FY 2nd quarter 31st October of FY 3rd quarter 31st January of FY 4th quarter 31st May of FY Form 27Q TDS on income received from interest, dividends, or any other sum payable to non residents. Quarterly 1st quarter 31st july of FY 2nd quarter 31st October of FY 3rd quarter 31st January of FY 4th quarter 31st May of FY Form 27EQ Collection of tax at source(TCS) Quarterly 1st quarter 31st july of FY 2nd quarter 31st October of FY 3rd quarter 31st January of FY 4th quarter 31st May of FY Form 26QB TDS on Payment on Transfer of Immovable Property (Not Being an Agricultural Land). Within 30 days from the end of the month in which deduction is made. Form 26QC TDS on Payment of Rent by Certain Individuals or HUF. Within 30 days from the end of the month in which deduction is made. About Form 24Q: On paying salary to an employee, the employer deducts TDS u/s 192. The employer has to file salary TDS return in Form 24Q. 24Q is to be submitted on a quarterly basis. Details of salary paid to the employees and TDS deducted on such payment is to be reported in 24Q. About Form 26Q: On paying to the payee, the payer has to deduct TDS on certain occasions. This payment is other than payment of salary, and the payer has to file TDS return in Form 26Q. 26Q is to be submitted on a quarterly basis. About Form 27Q: On making payments to non-residents(other than Salary), the payer has to deduct TDS and has to file TDS Return in the Form 27Q It is required to be furnished every quarter just like Form 24Q (for salary payments) and form 26Q (for non- salary payments). About Form 27EQ: Form 27EQ is a quarterly statement that mention all details and information regarding tax collected at source at the end of every quarter as per Section 206C of the Income Tax Act 1961.this form has to be submitted by the both corporate and government collector and Deductor. Penalty on default in Filing TDS Return: PENALTY U/S 234E: as per section 234E of Taxation rules, on default of a return on or before the due date, defaulter needs to pay a fine of Rs 200 until the date return is filed. * The maximum amount of penalty that the defaulter needs to pay on late filing is Rs. 5000/- only. PENALTY U/S 271H: As per section 271H of taxation rules, on default of filing statement of Tax deducted / collected at source on or before the due date, the penalty amount needs to pay, is Rs.10000. but cannot be go beyond Rs 100000/-. Note: Penalty u/s 271H is in addition to penalty u/s 234E. What is a TDS certificate? This form of certificates is issued by a Deductor who deduct the TDS on behalf of the deductee. This form contains the particulars of payment, deductor & deductee details, the date of tax deduction and the date of its credit to the government . Types of TDS Certificate: TDS certificate Form TDS Return Form Certificate issued on Scheduled date Form 16(TDS on Salary) Form 24Q Annually 31st may Form 16A(TDS on other Income) Form 26Q Quarterly Within 15 days of furnishing Form 26Q Form 16B(TDS on purchase on immovable property) Form 26QB Monthly Within 15 days of furnishing Form 26Q Form 16C(TDS on Payment on Rent) Form 26QC Monthly Within 15 days of furnishing Form 26Q About Form 26AS: Form 26AS, is a summarized annual statement which contains tax credit information of taxpayer against his PAN. This form is maintained and updated by the income tax department. This form helps to claim credit of all the taxes paid by deductee (plus paid by Deductor on your behalf-TDS ) while filing income tax return. About TAN: TAN stand for Tax Deduction/Collection Account Number. It is a 10 digit alphanumeric number, issued by the Income Tax Department to such person who is liable for deducting or collecting the tax. Exemption from TDS: The liability for TDS can be avoided in case your income is below the basic exemption limit. There are 2 forms which can help a resident citizen to avoid TDS liability on interest income. These are: • Form 15G (for Resident Citizen below 60 years & HUF) • Form 15H (for Resident Senior Citizens who are 60 years or above) these forms can be used when a particular income is exceeding than the threshold limit specified in individual section but overall limit is within basic exemption limit. Further, if the income of non-residents is also less than the basic exemption limit then for avoiding the TDS liability they need to file an application u/s 195(3) of the IT Act to the jurisdictional tax officer to obtain a certificate of non-deduction or lower deduction of taxes. Procedure to file TDS Return: Procedure to file TDS Return on income tax website as follows: • Step 1-Visit the website http://incometaxindiaefiling.gov.in/ and click on ‘Login here.’ • Step 2-Enter the correct login details and click on ‘Login’. The taxpayer’s user ID will be his/her TAN. • Step 3-Once the payer logged in, the next step is to click on the ‘Upload TDS’ option under the TDS column. • Step 4-A person will be provided with a form and he is required to select the correct details. Once the details are selected, click on ‘Validate’. • Step 5-The returns can be validated through the following modes:- A-Validation By Using Digital Signature Certificate B-Validation By Using Electronic Verification Code. CHOOSE REQUIRED PLAN: • Basic: TDS Return for one quarter Service Fees- 1499/- Including Taxes • Standard: TDS Return for two quarters Service Fees- 2499/- Including Taxes • Ace: TDS Return for four quarters Service Fees- 4999/- Including Taxes Working Process :

Choose your Plan and Pay Securely. > Upload required document > A Tax expert will be assigned to you for the procedure of submission of the application. > Our Tax Expert will complete process required for your work along with the necessary assistance over call during business hours.

Frequently Asked Question (FAQ’S)- Q-Who is eligible for TDS Return? A- TDS returns are filed by employers or organizations who have a valid Tax Collection and Deduction Number (TAN). A person who is making specified payments that are mentioned under the Income Tax Act is required to deduct tax at the source and it to be deposited within a stipulated time. Q- what is the duration required for TDS Refund? A- It takes 30-45 days from the date of the E-verification of the income tax return to get the refund credited. Q-Is it necessary to pay tax after TDS? A- Most of the payment rates of the TDS are set in the income tax act and the TDS is deducted by the payer based on the specified rates. In case you have submitted the investment proofs to the employee and the total taxable income is below the tax limit then he doesn't have to pay any tax. Q-What is TDS reconciliation? A- TRACES is the TDS Reconciliation Analysis and Correction Enabling System, an online portal of the Income Tax Department that helps in connecting all the stakeholders involved in the implementing and administration of Tax Deducted at Source and the Tax Collected Source. Q-What are TDS and TCS? A- TDS is the tax deducted on the payment that is made to the company, in case the amount is exceeding certain limits. TCS is the tax that is collected by the sellers while selling something to the buyers. The Deduction of TCS is applicable on sales of goods like timber, scrap, mineral wood, and so on. Q-What is Form 27A TDS? A- Form 27 A is the summary of e-TDS/TCS return ( Form 24Q.26Q,27Q, and 27EQ) which contain control totals of Amount Paid, Income Tax deducted at source, and tax deposited at the source. Q- Is there any penalty in case of incorrect TDS Filing? A- Yes, there is a penalty in case of incorrect TDS return filing. Q- Can I file a NIL TDS return as my first TDS return? A- As it is not mandatory to file Nil TDS return. But assessee can file Nil TDS return if no TDS is deducted by the assessee during the relevant quarter. Q-What is the Standard Deduction for salaried employees? A-In budget 2018, standard deduction of Rs. 40,000/- (Interim Budget 2019 Standard deduction increased to Rs. 50,000/- for FY 2019-20) was introduced in place of 1. Transport Allowance of Rs. 19,200/- 2. Medical Reimbursement of Rs. 15,000/-. ***