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ANKUSH CHOPRA & CO.
Chartered Accountants
TDS 2013-14
This booklet is intended for client service and internal use only
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TAX DEDUCTED AT SOURCES:
(An understanding
Procedures of TDS
Deducting
Depositing
Return filling
Refund claiming
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A. DEDUCTING
What is (TDS) Tax Deducted at Sources?
TDS is one of the mode of collection of taxes at certain %
of amount deducted by the person at the time of
making/crediting certain specific nature of payment to
other person and deducted amount is remitted to the
Government account.”
Who shall deduct tax at source?
Every person responsible for making payment of nature
covered by TDS provisions of Income Tax Act shall be
responsible to deduct tax.
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What a deductor must do?
Obtain TAN from IT Department i.e. DELH90468K
Obtain PAN of the deductee
Identify the nature of payment and categorize under section
Deduct the tax at specified rate
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B. DEPOSITING:
Where to be deposited?
The tax deducted has to be deposited in the designated
banks with in specified time.
What is time limit?
By or on behalf of Government:
If otherwise than Challan say book entry: On the same day.
Through Challan : within 7 days from end of month
By or on behalf of other person:
For the Quarter ending March : 30 April
For Other Quarters: within 7 days from end of the month.
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What are the Challans to be used?
Use Challan No.281 for depositing TDS amount
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C. Filing of Return: (Return to be filed as per prescribed time limit and form)
What are the forms to be used?
24Q - Salaries
26Q – Other than salaries
What is the Time limit for filing of Return?
QUARTER
ENDING
FOR GOVT.
OFFICES
FOR
OTHERS
30 June 31 July 15 July
30
September
31 October 15 October
31
December
31 January 15 January
31 March 15 May 15 May
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Issuance of Form 16 & 16A TDS Certificate:
CIRCULAR NO. 01/2012 [F.No. 276/34/2011-IT(B)], DATED 9-4-
2012 Notofication 41/2010 dated 31 may 2010
Who and when has to issue Form 16?
Deductor/Employer. Form 16 under sec 192 to be issued
annually (for salaried person)
Who and when has to issue Form 16A?
Deductor. Form 16A to be issued quarterly (other than
salaried
How to get Form 16A after Notification dt 9th Apr 12?
The deductor, issuing TDS certificate in Form 16A by
downloading from the TRACES website
How Form 16A has to authenticate?
Shall be authenticated by DIGITAL or MANNUAL signature.
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REFUND CLAIMING
Following are the procedures which need to be followed
to claim the refund:-
Get form 16 from deductor/employer.
Visit to IT Department either online or physically.
Fill the IT refund form and attached with form 16
Get a counter part as a acknowledgement for the submission
of refund form.
Tax deducted by the Employer but employee not getting
credit:-
Remind the employer to deposit the TDS with Govt and file
return.
In case of no response, assessee may write to ITO.
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Credit can be taken only if appears in 26AS, if not
shown, following may be the reason:-
Wrong PAN, not depositing of TDS, rejection of Return
due to technical reason.
So first ask to employer to check the return.
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Accounting treatment of TDS:
- In the books of Debtors, Buyers OR the person who
is making payment
At the time of Booking of expenses
Expenses A/c Dr--------xxx
Creditors/Party A/c Cr--------xxx
TDS Payable A/c Cr------------xxx
At the time of making payment
Party/Creditors A/c Dr----------xxx
Bank A/c Cr-----------xxx
TDS adjustment entries – Payment of TDS
TDS Payable A/c Dr-------xxx
Bank A/c Cr--------xxx
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Accounting treatment of TDS: - In the books of Creditors, Suppliers (Seller) OR the
person who is receiving payment
At the time of Booking of Revenue
Debtors/Party’s A/c Dr--------xxx
TDS Receivable A/c Dr-------xxx
Revenue /Income A/c Cr--------xxx
At the time of Receiving payment
Bank A/c Dr----------xxx
Debtors/Party’s A/c Cr-----------xxx
TDS adjustment entries – Can be adjusted against Tax
liabilities:
Income Tax Exp A/c Dr-------xxx
TDS Receivable A/c Cr-------xxx
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TDS Chart:
Important: Please note that the TDS Rates for FY 2013-14 remains same as of FY 2012-13,
only few changes were made which you can find after the table
Section Particulars TDS Threshold Limit
192 Salary Normal
Rate
As per normal computation of income
193 Interest on Specified Securities 10% Rs. 5,000 [Rs. 2,500 upto 30-6-2012] in
case of Listed Debentures payable to
resident individual or a Hindu undivided
family, by a company in which public are
substantially interestedRs. 10,000 in
case of 8% Savings (Taxable) Bonds,
2003,
Rs. 10,000 in case of 6½ per cent Gold
Bonds, 1977, or 7 per cent Gold Bonds,
1980, where the Bonds are held by an
individual not being a non-resident, and
the holder thereof makes a declaration
in writing before the person responsible
for paying the interest that the total
nominal value of the 6½ per cent Gold
Bonds, 1977, or, as the case may be, the
7 per cent Gold Bonds, 1980
No TDS on certain specified securities –
see section 193
193 Interest other Securities 10%
194 Dividend (Deemed) 10% Rs. 2,500 where shareholder is an
individual 194 Dividend (Other) Nil
194A Interest other than interest on security 10% (a) Rs. 10,000/- where the payer is a
banking company
(b) Rs. 10,000/- where the payer is a co-
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operative society engaged in carrying on
the business of banking;
(c) Rs. 10,000/- on any deposit with post
office under any scheme framed by the
Central Government and notified by it in
this behalf; and
(d) Rs. 5,000/- in any other case
194B Winning from Lotteries 30% Rs. 10,000
194BB Winning for horse race 30% Rs. 5,000
194C Payment to Individuals and HUF 1% Rs. 30,000 per single contract or Rs.
75,000 in aggregate during the Finance
Year
No TDS on GTA if PAN number of the
GTA is available
194C Payment to other contractors 2% Rs. 30,000 per single contract or Rs.
75,000 in aggregate during the Finance
Year
No TDS on GTA if PAN number of the
GTA is available
194D Insurance Commission 10% Rs. 20,000
194E Payment to a non-resident foreign
citizen sportsman or nonresident
sports association [upto 30.6.2012]
10% -
Payment to a non-resident foreign
citizen sportsman / entertainer or non
resident sports association [w.e.f.
1.7.2012]
20% -
194EE Payment for National Saving Scheme,
1987
20% Rs. 2500
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194F Payment for repurchase of units 20% -
194G Commission on sale of lottery ticket 10% Rs. 1,000
194H Commission or Brokerage 10% Rs. 5,000
194I Rent on land, building or furniture 10% Rs. 1,80,000
194IA TDS on transfer of immovable
property other than agriculture land
(w.e.f. 01.06.13)
1% Rs. 50,00,000
194I Rent on plant, machinery or
equipment
2% Rs. 1,80,000
194J Fees for Professional/Technical
services
10% Rs. 30,000
Remuneration to a director w.e.f.
1.7.2012
10%
194LA Compensation to a resident on
acquisition of certain immovable
property
10% Rs. 2,00,000
[Rs. 1,00,000 upto 30.6.2012]
Applicable TDS Rates are same as were in force for F.Y. 2013-13 except the changes
specified below.
I. Rates for deduction of income-tax at source during the financial year 2013-14 from
certain incomes other than “Salaries”.
The rates for deduction of income-tax at source during the financial year 2013-14 from certain
incomes other than “Salaries” have been specified in Part II of the First Schedule to the Bill. The
rates for all the categories of persons will remain the same as those specified in Part II of the
First Schedule to the Finance Act, 2012, for the purposes of deduction of income-tax at source
during the financial year 2012-13, except that in case of certain payments made to a non-resident
(other than a company) or a foreign company, in the nature of income by way of royalty or fees
for technical services, the rate shall be twenty-five percent of such income.
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(1) Surcharge—
The amount of tax so deducted, in the case of a non-resident person (other than a company),
shall be increased by a surcharge at the rate of ten per cent. of such tax, where the income or the
aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one
crore rupees .
The amount of tax so deducted, in the case of a company other than a domestic company (i.e.
foreign company), shall be increased by a surcharge at the rate of two per cent. of such tax,
where the income or the aggregate of such incomes paid or likely to be paid and subject to the
deduction exceeds one crore rupees but does not exceed ten crore rupees and it shall be
increased by a surcharge at the rate of five per cent. of such tax, where the income or the
aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten
crore rupees.
No surcharge will be levied on deductions in other cases.
(2) Education Cess—
“Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax”
shall continue to be levied at the rate of two per cent and one per cent. respectively, of income
tax including surcharge wherever applicable, in the cases of persons not resident in India
including companies other than domestic company.
II. Rates for deduction of income-tax at source from “Salaries”, computation of “advance
tax” and charging of income-tax in special cases during the financial year 2013-14.
The rates for deduction of income-tax at source from “Salaries” during the financial year 2013-
14 and also for computation of “advance tax” payable during the said year in the case of all
categories of assessees have been specified in Part III of the First Schedule to the Bill. These
rates are also applicable for charging income-tax during the financial year 2013-14 on current
incomes in cases where accelerated assessments have to be made, for instance, provisional
assessment of shipping profits arising in India to non-residents, assessment of persons leaving
India for good during the financial year, assessment of persons who are likely to transfer
property to avoid tax, assessment of bodies formed for a short duration, etc.
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Where, Why and How to File TDS Return
Every layman afraid from TDS because of difficult process of deduction,
payment, Return, Statement etc. But we will try to make it simple as
every layman can play with TDS. In this article we will discuss about
What is eTDS return, how to file TDS Return, Where to file it, How to
prepare it, software and documents
What is e-TDS Return/Statement?
TDS Return/statement is a summary of all the transaction made during
Quarter filed in the form of 26Q, 24Q, 27Q by computer readable media
on CD ROM/PAN Drive as format described under Income Tax Act.
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Who are liable to submit e-TDS Return/Statement?
The person who deducts TDS is liable to furnish eTDS Return. It is
mandatory to file TDS Return within time as given below; otherwise
they are liable to pay penalty for non-submitting of e-TDS Return. The
following persons are required to file e-TDS return quarterly.
Company
Persons whose accounts Audited (See limit for Audit of Accounts)
Govt. Officers
Preparation of e-TDS Statement Step by Step
1) TDS Return Software: First of all you need the software to prepare
TDS return as the format given by e-Filing Adminsistrator/Income tax
Department. You can find the data format on the official website of
Income Tax Department i.e. www.incometaxindia.gov.in and e-TDS
Intermediary’s website i.e. http://tin.nsdl.com. There is also software to
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validate the file which is prepared by TDS software. But you don’t need
to download it, if you have purchased the TDS software from valid
vendor. The e-tDS Intermediary (NSDL) has also provided the valid
vendor of TDS soft wares. You can buy online or offline.
All software has its help file to prepare TDS return/statement. As we
have experience, all software required to enter three entries after creation
of master of payees/deductee and payers/deductors.
(a) Credit or Paid Amount
(b) TDS deducted on that amount
(c) Challan detail of TDS payment
2) After Preparing and validating the .fvu file (e-TDS file after
preparation), it will generate form 27A. You should Printout two copies
of 27A.
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3) The authorized signatory should sign on it.
4) Copy the .fvu file to Pen Drive or burn the CD. But confirm form
your nearest TIN Facilitation centers for facility of Pen drives.
5) Now go to the TIN center with CD/Pen Drive and form 27A.
6) Pay the fee for process of TDS return (Rs.31 up to 100 deductees, Rs.
185 for maximum 1000 and minimum 101 deductees, Rs. 618 for more
than 1000 deductees)
7) Now take the provisional receipt from TIN Center and you have done.
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THANK YOU
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