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CA Manish [email protected]
9930883146
The Chamber of Tax Consultants –
05.02.2015
E-Filing of TDS
Return
TAX DEDUCTED AT
SOURCE (TDS)
T.D.S. Income Tax Act, 1961 in its chapter XVII relating to
Collection and Recovery of Tax in Part B has covered two important items :
Tax Deduction at Source (TDS)
Tax Collection at Source (TCS)
Sec. 192 to 206CA are relevant section
T.D.S. Different Income on which TDS / TCS is applicable
Salary Dividend other than 115O Interest Contract Payments Winning from lottery / Horse Race Commission Rent Professional Fees & Royalty Immovable Property Transfer / Compensation on
Acquisition Payments to Non Resident Purchase of Jewelry Sale of Alcoholic Liquor, forest produce, Scrap
T.D.S. Duties of person Deducting TDS / TCS
Deduct / Collect TDS
Deposit TDS / TCS
Declare to government by Filing of TDS / TCS returns
Declare to deductee by issuance of TDS / TCS certificate
T.D.S. Time of Deduction
Type of deduct Time line
TDS on Salary (Resident or Non Resident)
At the time of Payment
TDS other than Salary At the time of credit or payment whichever is earlier
TDS other than payable to Non Resident Payment
At the time of credit or payment whichever is earlier
TDS on payment of compensation for acquisition of Immovable Property
At the time of Payment
T.D.S. Time line for payment of TDS
(Except of Provision made on 31st March, for which due date for payment will be 30th April)
Type of deduct Time line
TDS on Salary (Resident or Non Resident)
On or before 7th of the next month in which TDS was deducted
TDS other than Salary On or before 7th of the next month in which TDS was deducted
TDS other than payable to Non Resident Payment
On or before 7th of the next month in which TDS was deducted
TDS on payment of compensation for acquisition of Immovable Property
On or before 7th of the next month in which TDS was deducted
T.D.S. Time line for filing of TDS / TCS return & Issuance
of TDS certificate
TDS certificate in Form 16B for immovable property within 15 daysfrom due date of filing return in Form 26QB which is 7th of nextmonth in which credit or payment whichever is early.
Quarter Ending
Last Date of filing Return
Last Date for issuance of certificate Form 16
Form 16A
30th June 15th July 30th July Part A 30th July
30th September 15th October 30th October Part A 30th October
31st December 15th January 30th January Part A 30th January
31st March 15th May 30th May Part A & Part B
30th May
T.D.S. Penalties
(Penalty not linked to TDS amount is limited to TDS amount)
Type of Default Interest / Penalty Section
Non Deduction of TDS 1% p.m. or part 201
Late payment of TDS 1.5% p.m. of part 201
Late filing of TDS Return (fine) 200 per day 234E
Late filing of TDS Return 100 per day 272A
Default in filing TDS return more than 1 year or non rectification of defects in TDS Return filed more than 1 year
10000 – 100000 271H
Late issuance of TDS certificate 100 per day 272A
Late submission of Lower Rate certificate u/s 197A
100 per day 272A
TDS RATES
SectionNature of
PaymentThreshold Limit
Paid/Credited to
An Individual,
HUF, BOI, AOP
Payments
Firm A Co-op. Soc.,
Local Authority
Domestic Company
Foreign Company Payments
(in ₹)< 1 Crore >1 Crore but
<10 Crore
>10 Crore
192 Salary* Normal Rate +
3% cess
N.A. N.A. N.A. N.A. N.A. N.A. N.A.
* After considering basic deduction u/Ch VIA – Individual: ₹ 2 50,000, Senior citizen: ₹ 3 00,000, Super Sr. Citizen ₹ 5,00,000/-.
Surcharge @ 10% if income is > ₹ 10 Crore.
193 Interest on Securities to any resident
(i) Interest on Debentures or securities
(Listed)
5,000 10% 10% 10% 10% N.A. N.A. N.A.
(ii) Interest on 8% Savings (Taxable)
Bonds, 2003
10,000 10% 10% 10% 10% N.A. N.A. N.A.
(iii) Any other interest on securities
(Unlisted)
Any Amount 10% 10% 10% 10% N.A. N.A. N.A.
194 Dividend other than dividend covered by
Section 115-O to Resident
2,500 10% 10% 10% 10% N.A. N.A. N.A.
194A Interest other than interest on securities
(i) Where the payer is Banking Company,
Co-operative society engaged in banking,
Post office under a deposit scheme
framed by Central Government
10,000 10% 10% 10% 10% N.A. N.A. N.A.
(ii) Others 5,000 10% 10% 10% 10% N.A. N.A. N.A.
TDS RATES
SectionNature of
PaymentThreshold Limit
Paid/Credited to
An Individual,
HUF, BOI, AOP
Payments
Firm A Co-op. Soc.,
Local Authority
Domestic Company
Foreign Company Payments
(in ₹)< 1 Crore >1 Crore but
<10 Crore
>10 Crore
194B Winnings from Lotteries 10,000 30% 30% 30% 30% 30.90% 31.518% 32.445%
194BB Winnings from Horse Races 5,000 30% 30% 30% 30% 30.90% 31.518% 32.445%
194C Payment to Resident Contractors
All Contracts other than
Transport Contract
30,000** per
payment/
credit
1% 2% 2% 2% N.A. N.A. N.A.
Transport Contract $ Nil Nil Nil Nil Nil Nil Nil
** The payments in a year in aggregate exceeds of ₹ 75,000 also attract TDS at above rates.
$ The Nil rates are applicable only if the PAN details are obtained from the Transport Contractors.
194D Insurance Commission to Resident 20,000 10% 10% 10% 10% N.A. N.A. N.A.
194DA Payment in respect of life Insurance
Policy
1,00,000 2% N.A. N.A. N.A. N.A. N.A. N.A.
194E Non-Resident sportsman/ sports
association
Any Amount 20% 20% 20% N.A. 20.60% 21.012% 21.63%
194EE Deposits under NSS and if the
payment is to Resident
2,500 20% N.A. N.A. N.A. N.A. N.A. N.A.
194F Repurchase of units of MF/UTI Any Amount 20% 20% 20% N.A. N.A. N.A. N.A.
194G Commission on sale of lottery tickets to 1,000 10% 10% 10% 10% 10.30% 10.506% 10.815%
TDS RATES
SectionNature of
PaymentThreshold Limit
Paid/Credited to
An Individual,
HUF, BOI, AOP
Payments
Firm A Co-op. Soc.,
Local Authority
Domestic Company
Foreign Company Payments
(in ₹)< 1 Crore >1 Crore but
<10 Crore
>10 Crore
194H Commission or brokerage to resident 5,000 10% 10% 10% 10% N.A. N.A N.A.
194-I Rent to Resident for
1,80,000(a) machinery/plant/equipments 2% 2% 2% 2% N.A. N.A. N.A.
(b) For Land/Building 10% 10% 10% 10% N.A. N.A. N.A.
194-IA Transfer of immovable property other
than an Agricultural land. (w.e.f.
1.6.2013)
50,00,000 1% 1% 1% 1% N.A. N.A. N.A.
194J Fees for Professional/ Technical
services to Resident
30,000 10% 10% 10% 10% N.A. N.A. N.A.
194LA Compensation to Resident for
compulsory acquisition of immovable
property
2,00,000 10% 10% 10% 10% N.A. N.A. N.A.
194LB Payment for interest by Infrastructure
Debt Fund to Non-Resident
— 5% 5% 5% N.A. 5.15% 5.253% 5.4075%
194LC Payment of interest to non-Resident
(approved by Central Government)
Interest borrowed during 1/7/2012-
30/6/2015
— 5% 5% 5% N.A. 5.15% 5.253% 5.4075%
TDS RATES
SectionNature of
PaymentThreshold Limit
Paid/Credited to
An Individual,
HUF, BOI, AOP
Payments
Firm A Co-op. Soc.,
Local Authority
Domestic Company
Foreign Company Payments
(in ₹)< 1 Crore >1 Crore but
<10 Crore
>10 Crore
194LD Payment of interest to FII’s, Qualified
Foreign Investor on Interest paid
during 1/6/2013- 1/6/2015
— 5% 5% 5% N.A. 5.15% 5.253% 5.4075%
196B Income from units (including long-term
capital gain on transfer of such units)
to an offshore fund Non-Resident
— N.A. N.A. N.A. N.A. 10.30% 10.506% 10.815%
196C Income from foreign currency bonds or
GDR of Indian company
— N.A. N.A. N.A. N.A. 10.30% 10.506% 10.815%
196D Income of FII from Securities not being
dividend, long-term and short-term
capital gain
— N.A. N.A. N.A. N.A. 20.60% 21.012% 21.63%
TCS RATES
Section Nature of PaymentThreshold
Limit
Paid/Credited to
An
Individu
al, HUF,
BOI,
AOP P
Firm A Co-
op.
Soc.,
Local
Author
ity
Domesti
c
Compan
y
< 1
Crore
Foreign
Compan
y
>1 Crore
but
<10 Crore
Foreign
Company
>10 Crore
Foreign
Company
206C Alcoholic liquor for human
consumption
Any Amount 1% 1% 1% 1% 1.03% 1.0506% 1.0815%
206C Tendu Leaves Any Amount 5% 5% 5% 5% 5.15% 5.253% 5.4075%
206C Timber obtained under forest
lease
Any Amount 2.5% 2.5% 2.5% 2.5% 2.575% 2.6265% 2.7038%
206C Timber obtained by any mode
other than under a forest lease
Any Amount 2.5% 2.5% 2.5% 2.5% 2.575% 2.6265% 2.7038%
206C Any other forest produce (not
being timber or tendu Leaves)
Any Amount 2.5% 2.5% 2.5% 2.5% 2.575% 2.6265% 2.7038%
206C Scrap Any Amount 1% 1% 1% 1% 1.03% 1.0506% 1.0815%
206C Parking lot, toll plaza, mining
and mining and quarrying
Any Amount 2% 2% 2% 2% 2.06% 2.1012% 2.163%
206C Minerals being coal, or lignite
or iron ore
Any Amount 1% 1% 1% 1% 1.03% 1.0506% 1.0815%
206C Bullion including any coin /
article weighing 10 gms. Or
less for which Consideration is
received in Cash.
2 Lakh for
Bullion & 5 Lakh
for Jewllery
1% 1% 1% 1% 1.03% 1.0506% 1.0815%
TDS RETURNS Different Types of TDS return and their applicability :
Different Types of Challans
Form no. Type of TDS
24Q TDS on Salary
26Q TDS on other than Salary and other than NR
27Q TDS on other than Salary for NR
27EQ TCS
26QB TDS on Transfer of Immovable Property(return cum Challan)
Form no. Type of TDS
281 TDS other than Transfer of Immovable Property
26QB TDS on Transfer of Immovable Property
TDS RETURN PREPARATION
TDS RETURN PREPARATION
Pre-Requirements Software – Income Tax Department “RPU 4.2”
Validation Software – TDS_FVU_Standalone_4.5”
Download from :
https://www.tin-nsdl.com/etds-etcs/eTDS-download-regular.php
JAVA version above 1.4.2 03 (www.java.com)
CSI file (challan information) https://tin.tin.nsdl.com/oltas/servlet/TanSearch
Deductor’s Basic details
Challan Details
TDS deducted transaction details
Tax Deduction Account No. (TAN)
TDS RETURN PREPARATION
Telephone no., Email ID although not “*” marked are compulsory field
TDS RETURN PREPARATION
Points to remember while filling“CHALLAN” sheet :
Section no. not to select
Interest , Fee or other charges paid in same challan should be shown separately
Whether TDS paid by book entry “Yes” or “No” needs to be carefully entered as the field in not modifiable
Minor Head to be entered carefully as it is verified while system based assessment and undue demands are raised
Check error file for Challan Mismatch and rectify proactively to avoid unwarranted rectification
TDS RETURN PREPARATION
Reasons for non deduction or lower deduction of TDS:
“ “= Items not following below
A = Certificate U/s 197 for lower deduction (certificate no. in column 30 compulsory)
B = Sec. 197A i.e. Form 15G / 15H received
C = Higher rate if PAN not available (“PANNOTAVBL”)
Y = Below Threshold limits
T = Deductee Transporter
Z = Payment to notified institution, AOP, BOI
Points to remember while fillingAnnexure-I
Section no. to be selected in this sheet
Valid PAN compulsory field
Challan Sr.no. to be selected carefully at it does notcross the amount actually paid
Sr.no. to be continuous for each challan starting from 1
Deductee reference, if entered should be samethroughout the return.
Type of Deductee “01” or “02” to be carefully selected asthis will determine the TDS rate for system assessment
Rate of Tax are not auto so calculate properly
File NIL return to avoid 234E late filing fees.
TDS RETURN PREPARATION
Points to remember while fillingAnnexure-I I
Valid PAN compulsory field
Deductee Type to be properly selected as the samelinked to rate of Tax
Deduction U/s 16(i) , 16(iii), 80c, 80ccc, 80ccG shouldbe entered into appropriate column as the same islinked to limits specified in the section.
Other Income reported by employee to be entered intocolumn no. 15. It will take negative figure to includehousing interest, etc.
Income Tax, Surcharge, Cess calculation are not auto.
TDS RETURN PREPARATION
TDS RETURN PREPARATION Step of creation of Return :
1. Save – will ask for location to save
2. Create file – It ask CSI file location, path to give error file (if any) else final output file.
3. It will automatically use validation software and create Form 27A which needs to be signed manually and file along with softcopy of relevant TDS return
4. If it gives error for using validation software (due to improper java or security settings) one can use the same separately and can generate Form 27A
5. File extention name .fvu & Form 27A to be submitted
TDS on purchase of Immovable Property
TDS payment to be made in Return cum Challan Form 26QB
Form to be filed online from following link :
https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Details Retquired :
PAN of Buyer and seller (Compulsory)
Name and Address of Buyer and seller
Agreement Details
Amount paid or credited details
Rate of TDS
PREPARATION OF CORRECTION / REVISED / RECTIFICATEION TDS
RETURN
Correction of Challan
Correction of Return
Revision of Return
Rectification of Return
Correction / Revision / Rectification
TDS CORRECTION RETURN
Type of Correction in Challan Possible :
In case time period is gone – can approach TDS officer, except for Total Amount
Type ofRectification
Whether Possible Y / N
Rectification by whom
TAN Y Bank within 7 days
Asst. Year Y Bank within 7 days
Total Amount Y Bank within 7 days
Major Head Y Bank within 3 month
Minor Head Y Bank within 3 month
Nature of Payment Y Bank within 3 month
TDS CORRECTION RETURN
Pre Requisite for filing Revise /Rectification Return (Correction Return) :
Revision / Rectification Data
Software = RPU 4.2
Validation software = TDS_FVU_standalone_4.5
Consolidated file from TRACES https://www.tdscpc.gov.in/app/login.xhtml
Online rectification also possible from TRACES (Tax Reconciliation Analysis and Correction Enabling System)
TDS CORRECTION RETURN General Errors for which correction return to
be filed : New Challan to be added
New Deductee details to be added
Change Challan details – BSR, CIN, Date (Forunmatched challans or overbooked challans)
PAN of deductee to modify
Credit Amount or TDS amount to be modified
Rate of Tax to modify
Type of deductee to modify
Add 197 certificate details
Deletion of Transaction in challan or Annexure I not permitted
TDS CORRECTION RETURN Step of creation of Return :
1. Save – will ask for location to save
2. Create file – It ask CSI file location, path to give error file (if any) else final output file.
3. It will automatically use validation software and create Form 27A which needs to be signed manually and file along with softcopy of relevant TDS return
4. If it gives error for using validation software (due to improper java or security settings) one can use the same separately and can generate Form 27A
5. File extension name .fvu & Form 27A to be submitted
Downloading of TDS certificate or Consolidated file from TRACES Visit TRACES at
https://www.tdscpc.gov.in/app/login.xhtml
If not register first get your self register
While Registration Two Option (i) Deductor for all cases other than Form 26QB (ii) Tax payer for cases like Form 26QB & Form 26AS
Request for TDS certificate / Consolidate file
Download TDS certificate / Consolidate file
Run TDS certificate file through Utility and generate TDS certificate in PDF format either Digitally signed or otherwise
TDS CORRECTION RETURN
Pre Requisite for Registration withTRACES:
Token of last TDS return filed
Challan details given in the return
Deductee details given in the return
In case there are less than 3 PAN than give as many PAN are their in the return
For Generating TDS Certificate
For Generating Justification Report in Excel
For Generating TCS Certificate
ONLINE CORRECTION
TDS HELP
Help in the software
Help on website of income
E-Tutorials on TRACES
Questions
???
ThanksJMT & Associates, Chartered
Accountants, Wing A 304/305
Winsway Complex, Old Police Lane,
Andheri (E), Mumbai 400 069
Cont. 022-26848347
