What I need to know about TDS

Section Number	Source	Payee type	Threshold Limit	TDS Rates
192	Salary Payment	Individual	Basic exemption limits based on the income tax slab rates.	Rates of Income Tax in force.
193	Interest on securities	Resident	Basic exemption limits based on the income tax slab rates.	10%
194	Deemed Dividend	Resident & Individual	Rs. 2,500/- each Financial Year	10%
194A	Interest excluding interest on securities	Resident	Rs. 10,000/- if the interest is paid by the following Banks – Co-operative Banks Post Office deposits. In any other case, Rs. 5,000/- will be the limit.	10%
194B	Income won from games like a crossword puzzle, card, lottery, etc.	Any person	The amount is exceeding Rs. 10,000/-	30%
194BB	Income won from House race	Any person	The amount is exceeding Rs. 10,000/-	30%
194C	Contractor payments	Resident & contractor	One of the following – If the single payment is exceeding Rs. 30,000/- If the Aggregate sums paid in the FY exceeding Rs. 1,00,000/-	Individual/HUF = 1% of the sum paid. Any other person = 2% of the sum paid.
194D	Insurance Commission	Any Resident	Rs. 15,000/- per Financial Year	10%
194DA	Amount under LIC	Resident	Aggregate payment should be less than Rs. 1,00,000/- in the FY	1%
194H	Brokerage or Commission	Resident	Rs. 15,000/- per Financial year	5%
194-I	Rent	Resident	Rs. 1,80,000/- per Financial Year	P&M or equipment = 2% Land, building, furniture or fixtures = 10%.
194-IA	Transfer of immovable property	Resident & Transferor	Consideration of Rs 50lakhs.	1%
194J	Royalty, Director Remuneration, Professional or technical service fees, Non-compete fees	Resident	Rs. 30000 for each income in the FY (Not applicable to payment to the director).	10%
194LA	Compensation on acquiring immovable property	Resident	Rs. 2,50,000 per FY	10%

TDS Exemptions

TDS is not deducted in the following situations:

• If the amount payment is made to Reserved Bank of India, Government or any such body.
• Mutual Fund under Section 10(23D)
• Finance Corporations of State or Central government
• If the deductee has non-deduction certificate under Section 192 of ITA.
• Credit to or interest paid to:
  • Banking company.
  • Co-operative society with banking business.
  • LIC, UTI or other insurance company.
  • NSC, KVP, or Indira Vikas Patra.
  • Body notified for non-deduction of tax.
  • Banks or cooperative society’s recurring deposits or saving accounts.
  • NRE Accounts.

Due Date for TDS deposit

Here’s the TDS return dates, for the Financial Year 2017-18, that is the assessment year. You need to file your TDS returns quarterly.

Quarter	Quarter Period	Due Date
1st	April to June	31st July 2016
2nd	July to September	31st October 2016
3rd	October to December	31st January 2017
4th	January to March	31st May 2017

By when can I pay TDS?

This tax may be deducted by the government or other deductors according to the following schedule:

When tax is deducted by a Government Office:

S.No.	Particulars	Due Date
1.	TDS deposited without Challan	Same Day
2.	TDS deposited with Challan	7th of next month
3.	TDS on perquisites opted to be deposited by the employer	7th of next month

Note: The above-mentioned challan is challan 280

In other Cases

S.No.	Particulars	Due Date
1.	Tax Deductible in March	30th April of next year
2.	Other Months and TDS which is to be deposited by the employer	7th of next month

Due date for issuing TDS Certificate and Form 16A

Anyone who furnishes a TDS statement, must receive Form 16A within 15days from the date of furnishing TDS statement.

Quarter	Quarter Period	TDS Return Due Date	FORM 16A Due Date
1st Quarter	1st April to 30th June	31st July, 2017	15th Aug, 2017
2nd Quarter	1st July to 30th September	31st Oct, 2017	15th Nov, 2017
3rd Quarter	1st October to 31st December	31st Jan, 2018	15th Feb, 2018
4th Quarter	1st January to 31st March	31st May, 2018	15th June, 2018

Interest on late payment of TDS

If you don’t pay TDS by the due date for every quarter, you will have to pay some interest, here is the interest list, in case of late payment of TDS: -

Section	Nature of Default	Interest subject to TDS amount	Period for which interest is to be paid
201A	Non-deduction of TDS, either in whole or in part	1% per month	From the date on which tax was deductible, till the date on which tax is actually deducted
	After deduction of tax, non-payment of tax either in whole or in part	1.5% per month	From the date of deduction to the date of payment

• The above-mentioned interests must be paid before filing of TDS returns.
• According to section 201(1A) you will have to pay interest for late deposit of TDS after TDS deduction. The interest is at the rate of 1.5% per month, from the date on which TDS was deducted to the date it was deposited. This interest is added monthly. Here, a part of a month is considered as a full month. A month is not defined in the Income Tax Act, but according to High court precedent, a month is considered as a period of 30 days and not as the month in the English calendar.

If you file your TDS returns late, then you are liable to pay a penalty, let’s find out what these penalties are: -

• Penalty under section 234E: Under this section, the deductor will have to pay a penalty of Rs. 200 per day till the time he/ she fails to pay TDS. You must know that, the penalty amount should not exceed the TDS amount.
• Penalty under section 271H: Under this section, the assessing officer must direct the individual who fails to file the TDS statement within the due to date to pay penalty of minimum Rs. 10,000, this amount may go up to Rs. 1,00,000.

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