|Section||Payment of Salary and Wages|
|Section 192||Criterion of Deduction : |
TDS is deducted if the estimated income of the employee is taxable.
Employer must not deduct tax on non-taxable allowances like conveyance allowance, rent allowance, medical allowance and deductible investments under sections like 80C, 80CC, 80CCD, 80D, 80DD, 80DDB, 80E, 80GG, 80U etc.
No tax is required to be deducted at source if the estimated total income of the employee is less than the minimum taxable income (Rs. 2,50,000/- in case of Individual, HUF, AOP, BOD and AJP. Nil for others.)
TDS Rate :
As per Income Tax, Surcharge and Education Cess rates applicable on the estimated income of employee for the year.
|Section 192A|| Payment of accumulated balance of provident fund which is taxable in the hands of an employee (with effect from 01.06.2015).
TDS Rate : 10%
|Section||For Payment of||On Payments Exceeding||Individual/HUF||Others|
|193||Interest on Securites||Rs. 5000/-||10%||10%|
|194||Dividend other than the dividend as referred to in Section 115-O||-||10%||10%|
|194 A||Income by way of interest other than 'Interest on securities'||Rs. 10000/-||10%||10%|
|194 A||Interest other than on securities by others||Rs. 5000/-||10%||10%|
|194 B||Winnings from Lotteries / Puzzle / Game||Rs. 10000/-||30%||30%|
|194 BB||Winnings from Horse Race||Rs. 5000/-||30%||30%|
|194 C (1)||Payment to Contractors|| Rs. 30000/- for single payment|
Rs. 75000/- for aggregate
|194 C (2)||Payment to Sub-Contractors / for Advertisements|
|194 D||Payment of Insurance Commission||Rs. 20000/-||10%||10%|
|194 EE||Payment of NSS Deposits||Rs. 2500/-||20%||NA|
|194 F||Repurchase of units by Mutual Funds / UTI||Rs. 1000/-||20%||20%|
|194 G||Commission on Sale of Lottery tickets||Rs. 1000/-||10%||10%|
|194 H||Commission or Brokerage||Rs. 5000/-||10%||10%|
|194 I||Rent of Land, Building or Furniture||Rs. 180000/-||10%||10%|
|Rent of Plant & Machinery||Rs. 180000/-||2%||2%|
|194 IA||Transfer of Immovable Property (w.e.f. 01.06.2013)||Rs. 50 lacs||1%||1%|
|194 J||Professional / technical services, royalty||Rs. 30000/-||10%||10%|
|194 J (1)||Remuneration / commission to director of the company||-||10%||10%|
|194 J (ba)||Any remuneration / fees / commission paid to a director of a company, other than those on which tax is deductible u/s 192.||-||10%||10%|
|194 L||Compensation on acquisition of Capital Asset||Rs. 100000/-||10%||10%|
|194 LA||Compensation on acquisition of certain immovable property||Rs. 200000/-||10%||10%|
All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain Tax Deduction or Tax Collection Account Number (TAN).
Salary :At the time of payment
Other Payments :When income paid or credited including credit to "Payable" or "Suspense" account.
Consequences of failure to deduct tax:
Interest - 1% of the tax deductible.
Penalty - equal to the amount of tax deductible but not deducted.
|Quarter||Salary Payments||Other Payment|
|April to February||7th of next month||7th of next month|
|March||30th April||30th April|
Consequences of default :
Interest @ 1.5% of tax not deposited is payable u/s 201(A).
Punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine under Section 276(B).
The certificate on Form No. 16 should be issued by the deductor by 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted.
2. In all other cases :
The certificate on Form No. 16A should be issued within fifteen days from the due date for furnishing the "statement of TDS" under rule 31A.
Penalty on Failure to Issue TDS Certificate: Rs. 100/- every day for the period failure continues subject to a maximum of TDS amount.
(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 :
|Quarter ending||Due Date||Forms|
|30th June||15th July of the financial year||Form 27Q, Form 27EQ|
|30th September||15th October of the financial year||Form 27Q, Form 27EQ|
|31st December||15th January of the financial year||Form 27Q, Form 27EQ|
|31st March||15th May of the financial year immediately following the financial year in which deduction is made||Form 27Q, Form 27EQ|
|Penal Provisions for failure / default in submitting returns /statements|
Deduction of Tax from Salary
|Failure to Deduct TDS||Interest at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and|
|Failure to Deposit TDS||Interest at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid, and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200:|
|Section 234E||Failure to TDS return in time||Fine of Rs. 200/- every day during which the failure continues will be levied on deductor as long as the default continues, subject to a maximum of TDS amount.
The interest is to be paid from the date on which TDS was deducted and not from the date on which deposit of TDS was due.
|Section 272A(2)||Failure to submit returns prescribed under Section 200(3)||Penalty between ranging from Rs 10,000 to Rs 1,00,000, is payable TDS return is not submitted within a year of the due date or if the submitted return has incorrect details (such as PAN, Challan, TDS amount).|
|Section 271H||(i) If deductor defaults for more than 1 year in filing TDS Statement or if deductor furnishes incorrect details like PAN, TDS amount, Challan particulars etc.||Penalty which shall not be less than ten thousand rupees but which may extend to one lakh rupees.|
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