Details€¦ · Deductor Deductee Threshold TDS Rates 194I Rent 1. Any Person other than individual/HUF 2. Individual and HUF to whom 44AB applicable All residents 1,80,000 & Rs

1

Action Details

Obtain TAN First time deductors should apply for TAN within one month from the end of the month in which the tax was first deducted or collected.

Register on the departmental website TRACES (www.tdscpc.gov.in).

Deduct tax at the applicable rates

Deposit the tax in government account using challan No. 281

Collect PAN of the deductee

Collect PAN of the deductee (payee) and Quote it correctly in the quarterly statements & certificates

RESPONSIBILITIES OF A DEDUCTOR

2

http://www.tdscpc.gov.in/







Action Details

File quarterly statements before the prescribed dates

i. Furnish particulars of Book Identification Number, ii. Challan Identification Number (CIN)

(in case of a Govt. Deductor) mark relevant flags for lower deduction or no deduction certificates issued by the AO (TDS), 15G/15H forms received, in the quarterly statements.

Issue TDS/TCS certificates on time after downloading it from TRACES

Quote correct TAN In challans, TDS certificate and quarterly statements.

3

TDS provisions at a glance

Section Nature of Payment Deductor Deductee Threshold TDS Rates

192 Salary

Any persons responsible for making such payment

All persons

2,50,000/- Total income

194A

Interest other than Interest on Securities

I. Any person other than individual/ HUF 2 Individual and HUF to whom section 44AB applicable

All residents

If payer a Bank / post office 50,000/- for resident senior citizen / 40,000/- for Others. for other payer 5,000/-

10% in respect of bank & post office, aggregates of all deposits on one name for TDS.

4

Section Nature of Payment Deductor Deductee Threshold TDS

Rates

194C

Contract for carrying out work

Any person being a specified person including individual HUFs, AOP/BOI to Whom 44AB applicable

All residents

Single Payment exceeding 30,000/- or Total payment exceeding 1,00,000/-during the year

1%: Ind./ HUF 2%: Other

194H

Commission 0r Brokerage

1. Any Person other than individual and HUF 2.Individual and HUF to Whom 44AB applicable

All residents

15,000/- 5%

5

Section Nature of Payment

Deductor Deductee Threshold TDS Rates

194I Rent

1. Any Person other than individual/HUF 2. Individual and HUF to whom 44AB applicable

All residents

1,80,000& Rs. 2,40,000 during the FY 2019-20

Land/ Building/ Furniture 10% Plant & Machinery 2%

194IA

Transfer

of

immovable

property

Any person being

transferee

responsible for

paying to resident

transferor sum

exceeding Rs. 50

lakhs even in

installment for

transfer of

immovable

property

All

residents

Value

of

Propert

y is

more

than 50

lakhs

1%

6


Rates

194IB

Payment of rent by individual /HUF not liable to tax audit

Individual\ HUF responsible for paying monthly rent of Rs. 50,000/- or more

All residents

Monthly rent exceeding Rs. 50,000/-

5%

194IC

Payment of monetary consideration under Joint Development Agreement

The person responsible for making such payment

All residents

On all payments

10%

7


Rates

194J

Fees for Professional\ Technical services/ Non-compete fees & Royalty

1. Any Person other than individual and HUF 2. Individual and HUF to whom 44AB applicable

30,000/- During the year

10% 2%If payee engaged in the business of operation of call centre

194J

195 Other sums payable to non-resident

The person responsible for making such payment

On all payments

At the rates in force

195

8

9


Rates

194M Payments to Contractors

and Sub-contractors or Fees for

Professional or Technical

Services

Individual or Hindu

Undivided family

Any Resident 50 lakhs 5 %

194N Payment of sums in Cash

a)Banking Company

b) Co-operative

Society c) Post office

To any person whom payment of aggregate of

sums , in cash, in excess of one

crore rupees is made

One crore 2 %

• In section 194DA, the rate of deduction is increased from “one per cent” of total sum , to “five per cent” on the amount of income comprised therin under Life Insurance Policy.

• In section 194IA , in Explanation, after clause (a), the following clause is inserted;

(aa) “consideration for immovable property” shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property.

10

Due dates for filing of Quarterly Statements

11

Form

No. Particulars Due date for furnishing

statement

24Q Quarterly return of TDS

from Salaries Quarter 1:- July 31st Quarter 2:- October 31st Quarter 3:- January 31st

Quarter 4:- May 31st

26Q Quarterly return of TDS in

respect of all payments other than Salaries

27Q Quarterly return in respect of payments made to Non

resident

27D issuance of Certificate of TCS July 31st , October 31st , January 31st , May 31st

27EQ Quarterly Return of TCS July 15th, October 15th, January 15th , May 15th

12

Tax deducted/collected by Government office

Tax deposited without challans/book entry Same day

Tax deposited with challan 7th of the next month from the end of the month in which deduction is made

Tax on perquisites opted to be deposited by the employer

7th of the next month from the end of the month in which deduction is made

Tax deducted/collected by Other

Tax deductible in March 30th April of next FY

Other months & Tax on perquisites opted to be deposited by the employer


Transaction of purchase of immovable property


Transaction of Rent above Rs. 50,000 Within 30days from end of the month in which deduction is made

Sr. No.

Form Periodicity Due Dates

1 16 Annual By the 15th day of June of the FY immediately following FY in which income was paid and tax deducted

2 16A Quarterly Within 15days from the due date of furnishing the statement of TDS

3 16B After deduction u/s. 194IA

Within 15days from the due date of furnishing form 26QB

4 16C After deduction u/s. 194IB

Within 15days from the due date of furnishing form 26QC

13

Default Section Nature of demand

Quantum of levy/prosecution

Failure to deduct TDS

201(1) Tax demand

Equal to tax amount deductible but not deducted

201(1A) Interest @1% per month or part of month of tax deductible from date of tax deductible till date of tax deducted

271C Penalty Equal to tax amount deductible but not deducted

Failure to deposit TDS on or before due date

201(1) Tax demand

Equal to tax amount deducted but not deposited

201(1A) Interest @1.5 % per month or part of month of tax not deposited from date of deduction till date of deposit

276B Prosecution Rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 yrs. & with fine 14

15

Expenditure claimed disallowed

As per section 40(a)(ia) of the IT Act, 30% percent of any expenses paid to a resident, on which TDS is applicable and TDS not deducted or, after deduction not paid shall be disallowed

Assessee in default Section 201(1)

An assessee shall be deemed to be in default in respect of :

Non deduction of tax at source

Non payment, in whole or in part, of the tax deducted

Consequences of Assessee in default- Assessee liable for recovery proceedings



Failure to apply for TAN or quote the correct TAN

272BB Penalty Rs. 10,000/-

Failure to deliver copy of declaration u/s 197A

272A(2)(f) Penalty 100/- for every day during which failure continues subject to the max. of TDS amount

Failure to issue TDS Certificate u/s 203

272A(2)(g) Penalty 100/- for every day during which failure continues subject to the max. of TDS amount

Failure to issue statement of perquisites u/s 192(2C)

272A(2)(i) Penalty 100/- for every day during which failure continues subject to the max. of TDS amount

16



Failure to deliver or cause to be delivered a statement (Form 24Q, 26Q, 27Q, 27A, 27EQ & 26B) within the prescribed time u/s 200(3)/206C(3)

234E Levy of fees

200/- for every day during which the failure continues subject to the max. of TDS amount

Failure to deliver or cause to be delivered a statement (Form 24Q, 26Q, 27Q, 27A, 27EQ & 26B) within the prescribed time u/s 200C(3) or furnishes incorrect statement

271 H Penalty 10,000/ to 1,00,000/-

Consequences of non-compliance with TDS provisions cont….

17

S.N. Nature of Goods/contract Rate

1 Alcoholic Liquor for human consumption 1.0% 2 Tendu leaves 5.0% 3 Timber obtained under a forest lease 2.5% 4 Timber obtained by any mode other than under a forest lease 2.5% 5 Any other forest produce not being timber or tendu leaves 2.5% 6 Scrap 1.0% 7 Leasing of Parking lot 2.0% 8 Leasing of Toll plaza 2.0% 9 Leasing of Mining and quarrying 2.0% 10 Minerals, being coal or lignite or iron ore 1.0%

11 Bullion if consideration (excluding any com/article weighting 10 grams or less} exceeds Rs. 2 Lakhs

1.0%

12 TCS on sale in cash of any goods (other than bullion / jewellery) exceeding Rs. 2 Lakhs

1.0%

13 TCS on providing of any services (other than Ch-XVII-B) exceeding Rs. 2 lakhs

1.0%

14 TCS on Motor Vehicle exceeding Rs. 10 Lakhs 1.0% 18

Due Dates for TCS statements and certificates

For the quarter ending 30thJune 30thSeptem

ber 31stDecem

ber 31stMar

ch

Due date of for

issuance of

Certificate of TCS

|Form27D)

30th

July 30th

October 30th

January

30th

May

Due date for

Filing statement

(Form27EQ)

15th July 15th October

15th January

15th May

19

TCS defaults and consequences



Failure to do TCS 206C(6) Tax demand

Equal to tax amount collectible but not collected

Failure to do TCS or deposit TCS

206C(7) Interest @1% per month of tax collectible.

Failure to do TCS 271CA Penalty Equal to tax amount collectible but not collected

Failure to deposit TCS

206C(6A) Tax demand

Equal to tax amount not deposited

Failure to deposit TCS

276BB Prosecution

Rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 yrs. & with fine 20

21



Failure to issue TCS Certificate u/s 206C

272A(2)(g)

Penalty 100/- for every day during which the failure continues

Failure to delivery copy of declaration u/s 206CI1A)

272A(2)(j)

Penalty 100/- for every day during which the failure continues

Failure to deliver statement u/s 206C(3) applicable upto FY 2011-12

272A(2)

(K)

Penalty 100/- for every day during which failure continues subject to the maximum of TCS amount

Failure to deliver or cause to be delivered statement within the prescribed time u/s 206C(3)

234E Levy of fees

200/- for every day during which the failure continues subject to the max. of TCS amount

Failure to deliver or cause to be delivered a statement (Form 27A & 27EQJ within the prescribed time u/s 206C(3) or furnishes incorrect statement

271 H Penalty 10,000/ to 1,00,000/-

Sr. No

Change Guidelines for compounding,

2014

Guidelines for compounding under Direct Tax Laws, 2019

1 Effective Date Applications received after

01.01.2015

Applications received after 17.06.2019

2 Payment of Outstanding Demand

No time Once compounding application filed, applicant has to clear all outstanding demand along with interest u/s 220 within 30 days of intimation of demand by AO.

3 No. of times for which offence can be compounded for Category A offence

max 3 occasions max 3 occasions and on more occasions in exceptional circumstances, approval of

Committee referred in para10.

4 Limitation to file compounding application after complaint filed in court

Within 12 months

Beyond that FM approval

required

Within 12 months after 12 months & before 24 months- competent authority is Committee referred in para 10 Beyond that FM approval required

22

Sr. No

Change Guidelines for compounding

under Direct Tax Laws, 2014


5 Time to pay compounding charge by the

assessee

60 days 60-120 days if time

allowed by Pr.CCIT Further extension-

if permitted by Member(Inv), CBDT

1 month Upto 2-3 month- if time allowed by Pr.CCIT Upto 3-12 months - if time allowed by Committee as per para 10 beyond 12 months- if permitted by Member(Inv), CBDT

6 Additional Compounding

Charge

if paid after 60 days of intimation - 2% per

month additional compounding charge

on the unpaid amount

if paid after one month of intimation- 2% per month on the unpaid amount

if paid after 3 months of intimation- 3% per month on the unpaid amount

23

Sr. No

Change Guidelines for compounding

under Direct Tax Laws, 2014


7 Compounding Charges u/s 276B/276BB

3% of tax in default for first offence and 5% for subsequent offences of tax in default

2% of tax in default if Assessee suo-moto files application 3% of tax in default for first offence and 5% for subsequent offences of tax in default

8 Compounding Charges where

extension has been provided for payment of

compounding fees

Normal compounding

charges

1.25 times of the Normal compounding charges

24

25

Documents

Details€¦ · Deductor Deductee Threshold TDS Rates 194I Rent 1. Any Person other than individual/HUF 2. Individual and HUF to whom 44AB applicable All residents 1,80,000 & Rs