TDS Rates Chart For Year 2013-14

December 31, 2012December 31, 2012 admin 11 Comments

Income Tax Act has fixed the Tax Deduction at Source (TDS) rates at which person has to do the TDS deduction from the payments. Income Tax Act has also fixed the limits of payment.i.e minimum amount after which person is liable to do the TDS on the payment like TDS will be applicable on interest payment only when the total interest payment amount is higher than Rs 5000/- Interest Payment includes Interest on Bank Fixed Deposit, Interest on Saving Account. This Limit of Rs 5000/- is also applicable on Payment of Brokerage and Commission. Similarly TDS rate of 1% is applicable on Gold Bullion and Jewellery but after the payment in cash crosses Rs 2 Lakhs.

Nature of payment made to Resident		Limit upto 30.06.2012	Limit w.e.f. 01.07.2012	TDS Rate (SC & Cess NIL)
194A	Interest other than interest on securities	5000*	5000*	10%
194C	Payment to contractor / sub-contractor (Note 1 & 2)
	Payment / Credit to an Individual / HUF	20000	30000**	1%
	Payment / Credit to any person other than an Individual /HUF	20000	30000**	2%
194D	Insurance Commission	20000	20000	10%
194H	Commission or Brokerage	2500	5000	10%
194I	Rent: Plant & machinery Land / Building / Furniture & Fittings	120000 120000	180000 180000	2% 10%
194J	Fees for professional or Technical services (2a & 2b)	20000	30000	10%
195	Payment to Non Resident			10-30%

Also Read What Do We Mean by TDS

*For Bank/ Post Office threshold limit is Rs. 10000/-

**Rs. 30000/- in a single payment or Rs. 75000/- in the aggregate during financial year

If recipient does not furnish his PAN deductor, tax will be deducted @ 20% (w.e.f. 01/04/2010)

Note:

1. If recipient is a transporter contractor (any person) and he or it furnishes his PAN to the deductor, tax is not deductible (w.e.f. 01/10/2009) (PAN intimated to IT.Dept)

2a. Tax is deductible on the entire consideration including service tax (if any)

2b. Remuneration paid to a director, which is not in the nature of salary, deduct TDS @10% of such remuneration w.e.f. 01/07/2012

TDS on bullion and jewellery it sale consideration receive in cash w.e.f. 01.07.2012		Limit (Rs.)	TDS Rate (Rs.)
206C(1D)	Bullion (excluding any coin or any other article weighting ten grams or less	200000	1%
206C(1D)	Jewellery	500000	1%

Income Tax TDS Rates Chart for Year 2012-2013 and 2013-14

December 31, 2012December 31, 2012 admin 27 Comments

Latest Tax Deduction at Source (TDS) Rates Chart for Year 2012-2013 and 2013-14 as per Income Tax Act, 1961. Income tax has prescribed the different TDS rates for different payments like TDS Rates on Payment of Interest, TDS on payment to NRI, TDS rate on winning from lottery or puzzle or quiz shows, TDS rate on payment made to contractor, TDS rate on Rent on House, TDS Rate on Rental on Plant & Machinery, TDS rate on payment made to professional for their services.Check Your TDS Deduction Statement Online Form 26AS. Finance Act, 2013 has imposed the TDS at the rate of 1 percent on the value of the transfer of immovable properties where consideration exceeds Rs.50 lakhs. Agricultural land to be exempted from TDS provision.

Particulars of Payment	Rate of Deduction
TDS on Interest Income	10%
TDS on Payment to NRI	20%/30%
TDS on Winning from Lottery, crossword, puzzles	30%
TDS on Winning from horse races	30%
TDS on Individual, HUF contractor or sub contractor	1%
TDS on Other contractor, sub contractor except individual and HUF	2%
TDS on Insurance commission (for other assessee except company)	10%
TDS on Insurance commission company	10%
Commission and brokerage	10%
TDS on Rent on plant and building	2%
TDS on Rent on land, building and furniture	10%
TDS on On professional and technical fees	10%
TDS on Salary Income: As per Income Tax Slab Rates

Submission of Form 15G/15H under the Income Tax Act: Time Limit

December 31, 2012December 31, 2012 admin 5 Comments

Deductor is required to submit to the CIT (To whom AO having jurisdiction to assess the payer is subordinate) one copy of Form 15G/ 15H within 7 days of the month next following the month in which such form is furnished to him.

In form 15G/15H, PAN has to be furnished, otherwise no certificate will be granted by Assessing Officer

In case of Form 15H, the age of senior citizen is 65 years upto 30.6.2012 years and 60 years w.e.f. 01.07.2012

DOWNLOAD NEW FORM 15G, Form 15H

Download Form 15G

Download Form 15H

Read When TDS is Not Deductible of Interest Payment or Interest of Fixed Deposit(FD)

Reference: Section 193 of the income tax Act, 1961

Interest on securities.

193. The person responsible for paying to a resident any income by way of interest on securities shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax at the rates in force on the amount of the interest payable:

Provided that no tax shall be deducted from—

(i) any interest payable on 4¼ per cent National Defence Bonds, 1972, where the bonds are held by an individual, not being a non-resident; or

(ia) any interest payable to an individual on 4¼ per cent National Defence Loan, 1968, or 4¾ per cent National Defence Loan, 1972; or

(ib) any interest payable on National Development Bonds; or

(ii) [***]

(iia) any interest payable on 7-Year National Savings Certificates (IV Issue); or

(iib) any interest payable on such debentures, issued by any institution or authority, or any public sector company, or any co-operative society (including a co-operative land mortgage bank or a co-operative land development bank), as the Central Government may, by notification in the Official Gazette, specify in this behalf;

(iii) any interest payable on 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, held by him (including such bonds, if any, held on his behalf by any other person) did not in either case exceed ten thousand rupees at any time during the period to which the interest relates;

(iiia) [* * *]

(iv) any interest payable on any security of the Central Government or a State Government:

Provided that nothing contained in this clause shall apply to the interest exceeding rupees ten thousand payable on 8% Savings (Taxable) Bonds, 2003 during the financial year;

(v)
any interest payable to an individual or a Hindu undivided family, who is resident in India, on any debenture issued by a company in which the public are substantially interested, if—

(a) the amount of interest or, as the case may be, the aggregate amount of such interest paid or likely to be paid on such debenture during the financial year by the company to such individual or Hindu undivided family does not exceed five thousand rupees; and

(b) such interest is paid by the company by an account payee cheque;

(vi) any interest payable to the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), in respect of any securities owned by it or in which it has full beneficial interest; or

(vii) any interest payable to the General Insurance Corporation of India (hereafter in this clause referred to as the Corporation) or to any of the four companies (hereafter in this clause referred to as such company), formed by virtue of the schemes framed under sub-section (1) of section 16 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), in respect of any securities owned by the Corporation or such company or in which the Corporation or such company has full beneficial interest; or

(viii) any interest payable to any other insurer in respect of any securities owned by it or in which it has full beneficial interest;

(ix) any interest payable on any security issued by a company, where such security is in dematerialised form and is listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the rules made thereunder.

Explanation—For the purposes of this section, where any income by way of interest on securities is credited to any account, whether called “Interest payable account” or “Suspense account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.

Explanation 2.—Omitted by the Finance Act, 1992, w.e.f. 1-6-1992.

Reference: Section 194 of the income tax Act, 1961

Dividends.

194. The principal officer of an Indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends (including dividends on preference shares) within India, shall, before making any payment in cash or before issuing any cheque or warrant in respect of any dividend or before making any distribution or payment to a shareholder, who is resident in India, of any dividend within the meaning of sub-clause (a) or sub-clause (b) or sub-clause (c) or sub-clause (d) or sub-clause (e) of clause (22) of section 2, deduct from the amount of such dividend, income-tax at the rates in force :

Provided that no such deduction shall be made in the case of a shareholder, being an individual, if—

(a) the dividend is paid by the company by an account payee cheque; and

(b) the amount of such dividend or, as the case may be, the aggregate of the amounts of such dividend distributed or paid or likely to be distributed or paid during the financial year by the company to the shareholder, does not exceed two thousand five hundred rupees:

Provided further that the provisions of this section shall not apply to such income credited or paid to—

(a) the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 (31 of 1956), in respect of any shares owned by it or in which it has full beneficial interest;

(b) the General Insurance Corporation of India (hereafter in this proviso referred to as the Corporation) or to any of the four companies (hereafter in this proviso referred to as such company), formed by virtue of the schemes framed under sub-section (1) of section 16 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), in respect of any shares owned by the Corporation or such company or in which the Corporation or such company has full beneficial interest;

Provided
also that no such deduction shall be made in respect of any dividends referred to in section 115-O.

Reference: Section 194A of the income tax Act, 1961

Interest other than “Interest on securities”.

194A. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities], shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force:

Provided that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such interest is credited or paid, shall be liable to deduct income-tax under this section.

Explanation.—For the purposes of this section, where any income by way of interest as aforesaid is credited to any account, whether called “Interest payable account” or “Suspense account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.]

(2) Omitted by the Finance Act, 1992, w.e.f. 1-6-1992.

(3) The provisions of sub-section (1) shall not apply—

(i) where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person referred to in sub-section (1) to the account of, or to, the payee, does not exceed—

(a) ten thousand rupees, where the payer is a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution, referred to in section 51 of that Act);

(b) ten thousand rupees, where the payer is a co-operative society engaged in carrying on the business of banking;

(c) ten thousand rupees, on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf; and

(d) five thousand rupees in any other case

Provided that in respect of the income credited or paid in respect of—

(a) time deposits with a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or

(b) time deposits with a co-operative society engaged in carrying on the business of banking;

(c) deposits with a public company which is formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes and which is eligible for deduction under clause (viii) of sub-section (1) of section 36,

the aforesaid amount shall be computed with reference to the income credited or paid by a branch of the banking company or the co-operative society or the public company, as the case may be;

(ii) [***]

(iii) to such income credited or paid to—

(a) any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank), or

(b) any financial corporation established by or under a Central, State or Provincial Act, or

(d) the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963), or

(e) any company or co-operative society carrying on the business of insurance, or

(f) such other institution, association or body or class of institutions, associations or bodies] which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette;

(iv) to such income credited or paid by a firm to a partner of the firm;

(v) to such income credited or paid by a co-operative society to a member thereof or to any other co-operative society;]

(vi) to such income credited or paid in respect of deposits under any scheme framed by the Central Government and notified by it in this behalf in the Official Gazette;

(vii) to such income credited or paid in respect of deposits (other than time deposits made on or after the 1st day of July, 1995) with a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);

(viia) to such income credited or paid in respect of,—

(a) deposits with a primary agricultural credit society or a primary credit society or a co-operative land mortgage bank or a co-operative land development bank;

(b) deposits (other than time deposits made on or after the 1st day of July, 1995) with a co-operative society, other than a co-operative society or bank referred to in sub-clause (a), engaged in carrying on the business of banking;

(viii) to such income credited or paid by the Central Government under any provision of this Act or the Indian Income-tax Act, 1922 (11 of 1922), or the Estate Duty Act, 1953 (34 of 1953), or the Wealth-tax Act, 1957 (27 of 1957), or the Gift-tax Act, 1958 (18 of 1958), or the Super Profits Tax Act, 1963 (14 of 1963), or the Companies (Profits) Surtax Act, 1964 (7 of 1964), or the Interest-tax Act, 1974 (45 of 1974);

(ix) to such income credited or paid by way of interest on the compensation amount awarded by the Motor Accidents Claims Tribunal where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees;

(x) to such income which is paid or payable by an infrastructure capital company or infrastructure capital fund or a public sector company or scheduled bank in relation to a zero coupon bond issued on or after the 1st day of June, 2005 by such company or fund or public sector company or scheduled bank.

Explanation 1.—For the purposes of clauses (i), (vii) and (viia), “time deposits” means deposits (excluding recurring deposits) repayable on the expiry of fixed periods.

(4) The person responsible for making the payment referred to in sub-section (1) may, at the time of making any deduction, increase or reduce the amount to be deducted under this section for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the financial year.

Reference: Section 194EE of the income tax Act, 1961

Payments in respect of deposits under National Savings Scheme, etc.

194EE. The person responsible for paying to any person any amount referred to in clause (a) of sub-section (2) of section 80CCA shall, at the time of payment thereof, deduct income-tax thereon at the rate of twenty per cent :

Provided that no deduction shall be made under this section where the amount of such payment or, as the case may be, the aggregate amount of such payments to the payee during the financial year is less than two thousand five hundred rupees :

Provided further that nothing contained in this section shall apply to the payment of the said amount to the heirs of the assessee.]

Reference: Section 197A of the income tax Act, 1961

No deduction to be made in certain cases.

(1) Notwithstanding anything contained in section 194 or section 194EE, no deduction of tax shall be made under any of the said sections in the case of an individual, who is resident in India, if such individual furnishes to the person responsible for paying any income of the nature referred to in section 194 or, as the case may be, section 194EE, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.

(1A) Notwithstanding anything contained in section 193 or section 194A or section 194K, no deduction of tax shall be made under any of the said sections in the case of a person not being a company or a firm, if such person furnishes to the person responsible for paying any income of the nature referred to in section 193 or section 194A or section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.

(1B) The provisions of this section shall not apply where the amount of any income of the nature referred to in sub-section (1) or sub-section (1A), as the case may be, or the aggregate of the amounts of such incomes credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to income-tax.

(1C) Notwithstanding anything contained in section 193 or section 194 or section 194A or section 194EE or section 194K or sub-section (1B) of this section, no deduction of tax shall be made in the case of an individual resident in India, who is of the age of sixty-five years or more at any time during the previous year ⁴⁴[***], if such individual furnishes to the person responsible for paying any income of the nature referred to in section 193 or section 194 or section 194A or section 194EE or section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form⁴⁵ and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.

(1D) Notwithstanding anything contained in this section, no deduction of tax shall be made by the Offshore Banking Unit from the interest paid—

(a) on deposit made on or after the 1st day of April, 2005, by a non-resident or a person not ordinarily resident in India; or

(b) on borrowing, on or after the 1st day of April, 2005, from a non-resident or a person not ordinarily resident in India.

Explanation.—For the purposes of this sub-section “Offshore Banking Unit” shall have the same meaning as assigned to it in clause (u) of section 2 of the Special Economic Zones Act, 2005

(1E) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from any payment to any person for, or on behalf of, the New Pension System Trust referred to in clause (44) of section 10.

(1F) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from such specified payment to such institution, association or body or class of institutions, associations or bodies as may be notified by the Central Government in the Official Gazette, in this behalf.

(2) The person responsible for paying any income of the nature referred to in sub-section (1) or sub-section (1A) or sub-section (1C) shall deliver or cause to be delivered to the Chief Commissioner or Commissioner one copy of the declaration referred to in sub-section (1) or sub-section (1A) or sub-section (1C) on or before the seventh day of the month next following the month in which the declaration is furnished to him.

Format of Certificate to be obtained by Auditor, under clause 17(h) of Form CD of the Tax Audit Report

December 31, 2012December 31, 2012 admin Leave a comment

PQR & Associates/Co.
Chartered Accountants
XYZ City

CERTIFICATE

UNDER CLAUSE 17(h) A OF FORM 3CD

(Read With Section 40a (3) Read With Rule 6dd Of The Income Tax Act, 1961)

1. Name of the Assessee :	_______________________________________
2. Address :	_______________________________________
3. Permanent Account Number :	__________________
4. Status :	__________________
5. Previous year ended :	__________________
6. Assessment year :	__________________

I/We (the above named assessee/ partner or director of the above named assessee) do hereby certify, for and on behalf of the assessee, that the following expenditure is incurred by the assessee during the previous year ended as stated above, in excess of Rs. 20,000/- otherwise than by account payee cheque drawn on a bank or by account payee bank draft, and is therefore not allowable under the provisions of Section 40A(3) read with Rule 6DD of the Income Tax Act, 1961 read with Rule 6DD and accordingly 100% of the following expenditure is added back as income while computing the total income of the assessee for the above said assessment year Viz.:

Date	Particulars	Amount	Allowance	Disallowance

	Total Rs.

I/We (the above named assessee/ partner or director of the above named assessee) do hereby further certify, for and on behalf of the assessee, that all other expenditure incurred by the assessee during the previous year ended as stated above, in excess of Rs. 20,000/- is incurred by account payee cheque drawn on a bank or by account payee bank draft only and not otherwise, except in such cases and in such circumstances (having regard to the nature and extent of banking facilities available. considerations of business expediency and other relevant factors) as prescribed under Rule 6DD of the Income Tax Act, 1961.

Place:_____________

________________

Proprietor / Partner / Director

Date:______________

FORM NO. 24C: Quarterly return for TDS Deduction

December 22, 2012December 22, 2012 admin Leave a comment

Form No. 24C of Income Tax Act is a statement to be filled for conformity of TDS/TCS. From 24C is used as an Quarterly return for TDS Deduction.

(1) Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:—

(a) Statement of deduction of tax under section 192 in Form No. 24Q;

(b) Statement of deduction of tax under sections 193 to 196D in—

(i) Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and

(ii) Form No. 26Q in respect of all other deductees.

(2) Statements referred to in sub-rule (1) for the quarter of the financial year ending with the date specified in column (2) of the Table below shall be furnished by—

(i) the due date specified in the corresponding entry in column (3) of the said Table, if the deductor is an office of Government; and

(ii) the due date specified in the corresponding entry in column (4) of the said Table, if the deductor is a person other than the person referred to in clause (i)

TABLE

Sl. No.	Date of ending of the quarter of the financial year	Due date	Due date
(1)	(2)	(3)	(4)
1.	30th June	31st July of the financial year	15th July of the financial year
2.	30th September	31st October of the financial year	15th October of the financial year
3.	31st December	31st January of the financial year	15th January of the financial year
4.	31st March	15th May of the financial year immediately following the financial year in which deduction is made	15th May of the financial year immediately following the financial year in which deduction is made.]

(3) (i) The statements referred to in sub-rule (1) may be furnished in any of the following manners, namely:—

(a) furnishing the statement in paper form;

(b) furnishing the statement electronically in accordance with the procedures, formats and standards specified under sub-rule (5) alongwith the verification of the statement in Form 27A.

(ii) Where,—

(a) the deductor is an office of the Government; or

(b) the deductor is the principal officer of a company; or

(c) the deductor is a person who is required to get his accounts audited under section 44AB in the immediately preceding financial year; or

(d) the number of deductee’s records in a statement for any quarter of the financial year are twenty or more,

the deductor shall furnish the statement in the manner specified in item (b) of clause (i).

(iii) Where deductor is a person other than the person referred to in clause (ii), the statements referred to in sub-rule (1) may, at his option, be delivered or cause to be delivered in the manner specified in item (b) of clause (i).

(4) The deductor at the time of preparing statements of tax deducted shall,—

(i) quote his tax deduction and collection account number (TAN) in the statement;

(ii) quote his permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government;

(iii) quote the permanent account number of all deductees;

(iv) furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be;

(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;

(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee;

(vii) furnish particulars of amount paid or credited on which tax was not deducted in view of the furnishing of declaration under sub-section (1) or sub-section (1A) or sub-section (1C) of section 197A by the payee.

(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing of the statements and shall be responsible for the day-to-day administration in relation to furnishing of the statements in the manner so specified.

(6) Where a statement of tax deducted at source is to be furnished for tax deducted before the 1st day of April, 2010, the provisions of this rule and rule 37A shall apply as they stood immediately before their substitution or omission by the Income-tax (Sixth Amendment) Rules, 2010.]

TDS AND TCS COMPLIANCE STATEMENT

[See rule 31A(1)(a)]

Financial Year

–

PERSONAL INFORMATION

Name

TAN

Flat/Door/Block No

Name of Premises/Building/Village

PAN of Head office or taxable entity

Road/Street/Post Office

Area/Locality

Quarter

(First / Second / Third / Fourth)

Town/City/District

State

Pin code

Email Address

(STD code)-Phone Number (
)

FILING STATUS

Designation of TDS Assessing Officer (Ward/Circle)

Whether Original or Revised return? (Tick) . Original Revised

If revised, enter Ack. No. and Date of filing of original return (DD/MM/YYYY)

Residential Status (Tick) . Resident Non-Resident

Is there any transaction of the nature specified in SCH COM-1 below Yes (Enter details in Schedule COM) No (Nil Return)

Tax deducted or collected at source

SCH COM-1

COM-1 Details of TDS compliance in the month of ___ ____ / ___ ___ ___ ___

Section

Nature of payment

Total Expense

or Capital outgo under the section

Total Amount on which

TDS / TCS

was liable or

eligible to

be deducted

or collected

out of (3)

Total Amount

on which tax

was deducted or

collected

at prescribed rate

out of (4)

Amount of

tax deducted or collected

on (5)

Total Amount on which tax was deducted or collected at

less than prescribed rate

out of (4)

Amount of

tax deducted or collected

on (7)

Total Amount =(6) + (8)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

192

Salaries to Govt. employees

192

Salaries to non-Govt. employees

193

Interest on securities

194

Dividend

194A

Interest other than interest on securities

194B

Winnings from lotteries and crossword puzzles

194BB

Winnings from horse race

194C

Payment of contractors and sub-contractors

194D

Insurance Commission

194E

Payments to non-resident sportsmen / Sport Associations

194EE

Payments in respect of deposits under National Savings Schemes

194F

Payments on account of re-purchase of units by Mutual Funds or UTI

194G

Commission, prize, etc., on sale of lottery tickets

194H

Commission or brokerage

194I

Rent

194J

Fees for professional or technical services

194K

Income payable to a resident assessee in respect of units of a specified Mutual Fund or of the units of the UTI

194LA

Payment of compensation on acquisition of certain immovable property

195

Other sums payable to a non-resident

196A

Income in respect of units of non-residents

196B

Payments in respect of units to an offshore fund

196C

Income from foreign currency bonds or shares of Indian company payable to non-resident

196D

Income of foreign institutional investors from securities

206C

Collection at source from alcoholic liquor for human consumption

206C

Collection at source from timber obtained under forest lease

206C

Collection at source from timber obtained by any mode other than a forest lease

206C

Collection at source from any other forest produce (not being Tendu leaves)

206C

Collection at source for scrap

206C

Collection at source from contractors or licensee or lease relating to parking lots

206C

Collection at source from contractors or licensee or lease relating to mine or quarry

206C

Collection at source from Tendu leaves

Total tax deducted or collected at source

Interest

Penalty

Others

Grand Total

Enter the details of receipts, expenses and capital outgo and corresponding TDS and TCS amounts, section-wise. The total of TDS and TCS in Col. 9 should match total of TDS and TCS deposited into the account of Central Government.

TAX DEDUCTED OR COLLECTED AT SOURCE

SCH COM-2	Details of TDS compliance in the month of ___ ____ / ___ ___ ___ __
	Section	Nature of payment	Total Expense or Capital outgo under the section	Total Amount on which TDS / TCS was liable or eligible to be deducted or collected out of (3)	Total Amount on which tax was deducted or collected at prescribed rate out of (4)	Amount of tax deducted or collected on (5)	Total Amount on which tax was deducted or collected at less than prescribed rate out of (4)	Amount of tax deducted or collected on (7)	Total Amount =(6) + (8)
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	192	Salaries to Govt. employees

	192	Salaries to non-Govt. employees

	193	Interest on securities

	194	Dividend

	194A	Interest other than interest on securities

	194B	Winnings from lotteries and crossword puzzles

	194BB	Winnings from horse race

	194C	Payment of contractors and sub-contractors

	194D	Insurance Commission

	194E	Payments to non-resident sportsmen / Sport Associations

	194EE	Payments in respect of deposits under National Savings Schemes

	194F	Payments on account of re-purchase of units by Mutual Funds or UTI

	194G	Commission, prize, etc., on sale of lottery tickets

	194H	Commission or brokerage

	194I	Rent

	194J	Fees for professional or technical services

	194K	Income payable to a resident assessee in respect of units of a specified Mutual Fund or of the units of the UTI

	194LA	Payment of compensation on acquisition of certain immovable property

	195	Other sums payable to a non-resident

	196A	Income in respect of units of non-residents

	196B	Payments in respect of units to an offshore fund

	196C	Income from foreign currency bonds or shares of Indian company payable to non-resident

	196D	Income of foreign institutional investors from securities

	206C	Collection at source from alcoholic liquor for human consumption

	206C	Collection at source from timber obtained under forest lease

	206C	Collection at source from timber obtained by any mode other than a forest lease

	206C	Collection at source from any other forest produce (not being Tendu leaves)

	206C	Collection at source for scrap

	206C	Collection at source from contractors or licensee or lease relating to parking lots

	206C	Collection at source from contractors or licensee or lease relating to mine or quarry

	206C	Collection at source from Tendu leaves
	Total tax deducted or collected at source
	Interest
	Penalty
	Others
	Grand Total

Tax deducted or collected at source

SCH COM –3

Details of TDS compliance in the month of ___ ____ / ___ ___ ___ ___

Section

Nature of payment

Total Expense

or Capital outgo under

the section

Total Amount

on which TDS / TCS

was liable or eligible to

be deducted or collected

out of (3)

Total Amount

on which tax was deducted or

collected

at prescribed rate

out of (4)

Amount of

tax deducted or collected

on (5)

Total Amount on which tax was deducted or collected at

less than prescribed rate

out of (4)

Amount of

tax deducted or collected

on (7)

Total

Amount

=(6) + (8)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

192

Salaries to Govt.

employees

192

Salaries to non-Govt.

employees

193

Interest on securities

194

Dividend

194A

Interest other than

interest on securities

194B

Winnings from

lotteries and

crossword puzzles

194BB

Winnings from horse race

194C

Payment of

contractors and sub-

contractors

194D

Insurance Commission

194E

Payments to non-

resident sportsmen / Sport Associations

194EE

Payments in respect of

deposits under

National Savings

Schemes

194F

Payments on account

of re-purchase of units

by Mutual Funds or

UTI

194G

Commission, prize,

etc., on sale of lottery tickets

194H

Commission or brokerage

194I

Rent

194J

Fees for professional or technical services

194K

Income payable to a resident assessee in respect of units of a specified Mutual Fund or of the units of the UTI

194LA

Payment of compensation on acquisition of certain immovable property

195

Other sums payable to a non-resident

196A

Income in respect of units of non-residents

196B

Payments in respect of units to an offshore fund

196C

Income from foreign currency bonds or shares of Indian company payable to non-resident

196D

Income of foreign institutional investors from securities

206C

Collection at source from alcoholic liquor for human consumption

206C

Collection at source from timber obtained under forest lease

206C

Collection at source from timber obtained by any mode other than a forest lease

206C

Collection at source from any other forest produce (not being Tendu leaves)

206C

Collection at source for scrap

206C

Collection at source from contractors or licensee or lease relating to parking lots

206C

Collection at source from contractors or licensee or lease relating to mine or quarry

206C

Collection at source from Tendu leaves

Total tax deducted or collected at source

Interest

Penalty

Others

Grand Total

SCH PAY	Details of payment of tax deducted or collected at source
	Sl. No.	Challan Identification Number (CIN)	Amount

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Download Income Tax FORM NO. 17: Challan for Paymemt of TDS/TCS

December 22, 2012December 22, 2012 admin Leave a comment

Income Tax Form No 17 is filled as an income tax challan for payment of TDS/TCS.

(1) All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government shall be paid to the credit of the Central Government—

(a) on the same day where the tax is paid without production of an income-tax challan; and

(b) on or before seven days from the end of the month in which the deduction is made or income-tax is due under sub-section (1A) of section 192, where tax is paid accompanied by an income-tax challan.

(2) All sums deducted in accordance with the provisions of Chapter XVII-B by deductors other than an office of the Government shall be paid to the credit of the Central Government—

(a) on or before 30th day of April where the income or amount is credited or paid in the month of March; and

(b) in any other case, on or before seven days from the end of the month in which—

(i) the deduction is made; or

(ii) income-tax is due under sub-section (1A) of section 192.

(3) Notwithstanding anything contained in sub-rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table:—

TABLE

*Sl. No.*	*Quarter of the financial year ended on*	*Date for quarterly payment*
(1)	(2)	(3)
1.	30th June	7th July
2.	30th September	7th October
3.	31st December	7th January
4.	31st March	30th April

B. Mode of payment

(4) In the case of an office of the Government, where tax has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the deductor reports the tax so deducted and who is responsible for crediting such sum to the credit of the Central Government, shall—

(a) submit a statement in Form No. 24G within ten days from the end of the month to the agency authorised by the Director General of Income-tax (Systems) in respect of tax deducted by the deductors and reported to him for that month; and

(b) intimate the number (hereinafter referred to as the Book Identification Number) generated by the agency to each of the deductors in respect of whom the sum deducted has been credited.

(5) For the purpose of sub-rule (4), the Director General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data, and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner so specified.

(6)(i) Where tax has been deposited accompanied by an income-tax challan, the amount of tax so deducted or collected shall be deposited to the credit of the Central Government by remitting it within the time specified in clause (b) of sub-rule (1) or in sub-rule (2) or in sub-rule (3) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank.

(ii) Where tax is to be deposited in accordance with clause (i), by persons referred to in sub-rule (1) of rule 125, the amount deducted shall be electronically remitted into the Reserve Bank of India or the State Bank of India or any authorised bank accompanied by an electronic income-tax challan.

(7) For the purpose of this rule, the amount shall be construed as electronically remitted to the Reserve Bank of India or to the State Bank of India or to any authorised bank, if the amount is remitted by way of—

(a) internet banking facility of the Reserve Bank of India or of the State Bank of India or of any authorised bank; or

(b) debit card.

(8) Where tax is deducted before the 1st day of April, 2010, the provisions of this rule shall apply as they stood immediately before their substitution by the Income-tax (Sixth Amendment) Rules, 2010.]

FORM NO. 17

It is filled as an income tax challan for payment of TDS/TCS

INDIAN INCOME TAX CHALLAN

FOR

PAYMENT OF TDS AND TCS

[See rule 30(4)(a) or

rule 37CA(2)(a) ]

Financial Year

in which

tax deducted or collected

at source

–

TAN

Date of deposit (DD/MM/YYYY)

PAN

–

Challan Identification Number (CIN)

BSR Code

Date (DD/MM/YYYY)

Serial Number

Transaction Reference Number

Full Name

Complete Address with City & State

Email Address

Phone Number (with STD Code)

Mobile No.

Details of payment

Total amount of TDS & TCS payable (in figures)

Total Amount of TDS & TCS payable (in words)

Crores

Lakhs

Thousands

Hundreds

Tens

Units

Paid by debit to account (Account No. of the deductor)

Date

debit

–

Name of the Bank in which payment is made

Details of TDS / TCS from deductee (if the number of records exceeds 10 then upload deductee file)

Upload deductee file

Unique Transaction Number

PAN of deductee

PAN valid (Y/N)

Name of deductee

TDS / TCS Amount (including surcharge and education cess)

Total TDS / TCS

Interest

Penalty

Others

Total of the above amounts

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Rate of TDS on Fees For Professional Services under section 194J of the Income Tax Act

October 18, 2012October 18, 2012 admin Leave a comment

Section 194J of the Income Tax Act, 1961 deals with TDS on Payment made to professional such as sports persons, coaches, trainers, anchors etc. TDS on technical services and royalty payment is also covered under section 194J of the Income Tax Act.

NATURE OF PAYMENT

Following payment are covered under this section –

Payment	Remark
Fees for professional services	Here ‘Professional services’ means the services rendered by a person in the course of carrying on – Advertising profession Any profession notified u/s 44AA Any profession notified for the purpose of section194J following profession have been notified: Sports persons Umpires and referees Coaches and Trainers Team physicians and Physiotherapists Event manager Commentators Anchors and Sports columnists
Fees for technical services	Here’ Fee for technical services’ shall have the same meaning as in section 9(1)
Royalty	Here ‘Royalty’ shall have the same meaning as in section 9(1)
Any some referred to in section 28(va)	Sections 28(va) covers payment for non-complete / non- sharing agreements for detail refer BPV head.

Meaning of Royalty Section 9 of the Income Tax Act

“Royalty” means consideration (including any lump sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head “Capital gains”) for—

(i) the transfer of all or any rights (including the granting of a licence) in respect of a patent, invention, model, design, secret formula or process or trade mark or similar property ;

(ii) the imparting of any information concerning the working of, or the use of, a patent, invention, model, design, secret formula or process or trade mark or similar property ;

(iii) the use of any patent, invention, model, design, secret formula or process or trade mark or similar property ;

(iv) the imparting of any information concerning technical, industrial, commercial or scientific knowledge, experience or skill ;

(iva) the use or right to use any industrial, commercial or scientific equipment but not including the amounts referred to in section 44BB.

(v) the transfer of all or any rights (including the granting of a licence) in respect of any copyright, literary, artistic or scientific work including films or video tapes for use in connection with television or tapes for use in connection with radio broadcasting, but not including consideration for the sale, distribution or exhibition of cinematographic films ; or

(vi) the rendering of any services in connection with the activities referred to in sub-clauses (i) to (iv), (iva) and (v).

Fees for professional or technical services.

194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—

(a) fees for professional services, or

(b) fees for technical services or

(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company; or

(d) any sum referred to in clause (va) of section 28,

shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax on income comprised therein :

Provided that no deduction shall be made under this section—

(A) from any sums as aforesaid credited or paid before the 1st day of July, 1995; or

(B) where the amount of such sum or, as the case may be, the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed—

(i) thirty thousand rupees, in the case of fees for professional services referred to in clause (a), or

(ii) thirty thousand rupees, in the case of fees for technical services referred to in clause (b), or

(iii) thirty thousand rupees, in the case of royalty referred to in clause (c), or

(iv) thirty thousand rupees, in the case of sum referred to in clause (d) :

Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum by way of fees for professional services or technical services is credited or paid, shall be liable to deduct income-tax under this section :

Provided also that no individual or a Hindu undivided family referred to in the second proviso shall be liable to deduct income-tax on the sum by way of fees for professional services in case such sum is credited or paid exclusively for personal purposes of such individual or any member of Hindu undivided family.]

(2) [***]

(3) [***]

Explanation.—For the purposes of this section,—

(a) “professional services” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section;

(b) “fees for technical services” shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;

(ba) “royalty” shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9;

(c) where any sum referred to in sub-section (1) is credited to any account, whether called “suspense account” or by any other name, in the books of account of the person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the provisions of this section shall apply accordingly.

TDS Rate on Salary Income and TDS Calculation on Salary under section 192

October 18, 2012October 18, 2012 admin 10 Comments

How to Calculate the TDS Amount on Salary Income i.e Tax Deduction on Salary or What will be the TDS Rate on Salary Income.There is no fixed Tax Deduction Rate (TDS Rate) for Salary Income, TDS has be calculated based on the Income Tax rate applicable to that person. For each year Income Tax Slab Rates are different .i.e Income Tax for Year 2012-13 & 2013-14 (A.Y. 2013-2014 & A.Y. 2014-15) Salary Income upto Rs. 2 Lakh is not taxable and For Year 2011-12 (A.Y. 2012-13) Income upto Rs. 180000 was not taxable.

NATURE OF PAYMENT

Any payment chargeable under the head “salary”. Thus, where a firm pays salary to its partner, section 192 is not applicable because such payment is taxable in the hands of partner under the head “Income from BPV”.

Steps to calculate TDS on Salary Income:

Steps	Computation	Remark
Step 1	Estimate income taxable under the head “Salary” as per provisions for salary	Simultaneous employment: Where, the employee is employed simultaneously by more than one employee as responsible for TDS and provide the details of salary Income from other employees, TDS out of such salary and other necessary particulars to such selected employer in form No. 12B Previous employment: Where the employee was in employment under same previous employer in the same year, he may furnish details of salary Income, TDS out of such income and other necessary particulars to his present employee in Form No. 12 B
Step 2	Consider other incomes, if reported by the employee	If the employee submits details of other incomes and TDS out of such income and TDS out of such income in Form No. 12C and employer shall consider such other income and TDS while calculating TDS u/s 192. However, following points should be kept in mind – The employer cannot consider negative incomes (i.e. Losses)except under the head “House Property” The employer cannot consider other income and TDS , if the effect of such consideration is to reduce the tax otherwise deductable u/s 192.
Step 3	Allow deduction under chapter VI-A	The deduction under 80G can be allowed only in respect of certain donations.
Step 4	Calculate Tax at the rates applicable to an individual. Include education cess and SH education cess as applicable
Step 5	Allow relief u/s 89	If the employer is Govt. company, cooperative society, university, local authority, institution, association or body, it can consider relief u/s 89 provided the employee submits necessary details in Form No. 10E
Step 6	The net tax liability shall be deducted	The TDS shall be deducted at the average rate of Tax.

DEDUCTION AT WHAT TIME?

Tax shall be deducted at the time of making payment of salary.

IMPORTANT NOTES

Adjustment of excess / deficiency:

The employer can increase or reduce the amount of TDS so as to adjust previous excess / short-deduction during the same year.
Tax payment on non-monetary perquisites:

The employer can make, at his option, payment of tax on non-monetary perquisites of employees. In such a case, no TDS shall be required to that extent. It is further provided that the tax payable by the employer in relation to non-monetary perquisites shall be calculated as follows –

What Do You Mean by TDS

October 18, 2012October 18, 2012 admin 2 Comments

Any person responsible for paying any income chargeable under the head “salary” is required to deduct tax at source on the amount payable. The person responsible for paying the salary at the time of deducting at source. The amount to be deducted for the purpose of adjusting any previous deficiency or excess deduction.

Also Read Current TDS rates and Deduction Limits on TDS

Who is responsible for tax deduction?

Any person responsible for paying any sum of any resident contractor for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between specified person and the contractor is required to tax deducted at source

Specified person means: The following are the specified person for this purpose:

Central government or any state government
The local authority
Any corporation established by or under a central, state or provincial Act
Any company
Any corporate society
Any trust
Any firm
Any individual or HUF whose books are required to be audited u/s 44AB(a)/(b)
Any foreign government or a foreign enterprise or any association or body established outside India (application from October 1,2009)

Rate of TDS on Rental Income Under Section 194I of the Income Tax Act

October 18, 2012October 18, 2012 admin Leave a comment

Rate of TDS on Rental Income Under Section 194I of the Income Tax Act, Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of—

View Form 26AS TDS Deduction Status Online

(a) two per cent for the use of any machinery or plant or equipment; and

(b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:

TDS Rates Chart For Year 2013-14

NATURE OF PAYMENT: TDS ON RENTAL INCOME IS 10%

Payment by way of “rent”

Here ‘Rent’ means any payment, by whatever name called, under any lease, sub lease, tenancy or any other agreement or agreement for the use of (either separately or together) any –

Land, or
Building (including factory building), or
Machinery, or
Plant, or
Equipment, or
Furniture, or
Fittings

Whether or not any or all of the above are owned by the payee.

Rate of TDS on Fees For Professional Services under section 194J of the Income Tax Act

TDS Rate on Salary Income and TDS Calculation under section 192

TDS RATES

Nature of payment

Basic rate of TDS

Payment for use of machinery / plant / equipment

Payment for use of land / building / furniture / fitting

10%

IMPORTANT POINTS:

TDS under this section is necessary only if the rent paid or payable during a previous year exceeds Rs. 180000/-. Thus a question would arise as to whether the limit of 120000/-shall apply to the aggregate of rents of all item (mentioned above in the list) hired from one person, or will apply individually to each item. The clear interpretation of the language is that is it will apply to the aggregate of the all rents.
Whether the property is owned by two or more owners and the individual share of each co-owner is definite and ascertainable the limit of Rs.180000/- shall apply to each co-owner separately.
Non refundable deposit given by the tenant is in the nature of advance rent and will be subject to TDS.
Any refundable security given by the tenant does not attract TDS unless such deposit is in the nature of advance rent.

CBDT CIRCULAR NO.4/2008, DATED 28-4-2008

“Rent, means any payment, by whatever name called, under any lease, sub lease, tenancy or any other agreement or agreement for the use of (either separately or together) any –

Land,
Building (including factory building),
Machinery,
Plant
Equipment
Furniture
Fittings

Whether or not any or all of the above are owned by the payee”.

The board has further observed that the service tax paid by the tenant does not partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of service tax.

Therefore it has been decided that tax deduction at source (TDS) under section 194-I of income tax act would be required to be made on the amount of rent paid / payable without including the service tax.

Note: This circular is directly relevant for sec 194-I only. Whether it would also apply to other section of TDS or not is not free from doubt. There are two views on this issue.

Reference: Section 194-I of the Income Tax Act, 1961

TDS on Rent

194-I. Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of rent, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of—

(a) two per cent for the use of any machinery or plant or equipment; and

(b) ten per cent for the use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:

Provided that no deduction shall be made under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed one hundred and eighty thousand rupees :

Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such income by way of rent is credited or paid, shall be liable to deduct income-tax under this section.]

Explanation.—For the purposes of this section,—

(i) “rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,—

(a) land; or

(b) building (including factory building); or

(d) machinery; or

(e) plant; or

(f) equipment; or

(g) furniture; or

(h) fittings,

whether or not any or all of the above are owned by the payee;]

(ii) where any income is credited to any account, whether called “Suspense account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.]