TDS Return
TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at the source if the payment exceeds certain threshold limits.
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NATURE OF TAX DEDUCTION AT SOURCE (TDS)
TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at the source if the payment exceeds certain threshold limits.
TDS has to be deducted at the rates prescribed by the tax department. The company or person that makes the payment after deducting TDS is called a deductor, and the company or person receiving the payment is called the deductee.
The deductor is responsible for deducting TDS before making the payment and depositing the same with the government. TDS is deducted irrespective of the mode of payment–cash, cheque or credit–and is linked to the PAN of the deductor and deductee.
FORM OF FILLING TDS RETURN
Form No. | Description |
Form | Quarterly TDS statement for tax deducted on salary payments. |
Form | Quarterly TDS statement for tax deducted while making |
Form | Quarterly TDS statement for other cases like TDS deducted |
Table of Contents
DUE DATE OF FILLING TDS RETURN
Quarter | TDS Returns | Due |
1st Quarter | Form 24Q and 26Q, Form 27Q | 15 July |
2nd Quarter | Form 24Q and 26Q, Form 27Q and | 15 October |
3rd Quarter | Form 24Q and 26Q, Form 27Q and | 15 January |
4th Quarter | Form 24Q and 26Q, Form 27Q and | 15 May |
TDS RATE CHART FOR FY-2022-23 (AY-2023-24)
Section | Nature of payment | Threshold Limit Rs. | Applicable from 01/04/2022 to 31/03/2023 | |
|
|
| Resident | Non-resident * |
|
| Rs. | TDS Rate (%) | TDS Rate (%) |
192 | Salaries | – | Normal slab rate | Normal slab rate |
192A | Premature withdrawal from EPF | 50000 | 10 | 10 |
193 | Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year | 10000 | 10 | – |
193 | Interest on securities – Interest on securities for money issued by or on behalf of any local authority/statutory corporation, listed debentures of a company(other than demat form), any other interest on securities | 5000 | 10 | – |
194 | Dividends | 5000 | 10 | – |
194A | Interest (Banking co., co-operative society engaged in banking, post office) | 40000 | 10 | – |
194A | Interest (Any other person) | 5000 | 10 | – |
194B | Winning from lotteries | 10000 | 30 | 30 |
194BB | Winning from Horse race | 10000 | 30 | 30 |
194C | Contractor-Single transaction-Individual/HUF -Others | 30000 | 1 2 | – – |
194C | Contractor – Consolidated Payment During the F.Y – Individual/HUF – Others | 100000 | 1 2 | – – |
194D | Insurance commission – Other than Company – Company | 15000 | 5 10 | – – |
194DA | Maturity of Life insurance policy | 100000 | 5 | – |
194E | Non-resident sportsmen or sports association | – | – | 20 |
194EE | NSS | 2500 | 10 | 10 |
194F | Repurchase units by MFs | – | 20 | 20 |
194G | Commission-Lottery | 15000 | 5 | 5 |
194H | Commission/Brokerage | 15000 | 5 | – |
194I | Rent of – Plant/Machinery /Equipment – Land and Building/Furniture & Fixture | 240000 | 2 10 | – – |
194IA | Transfer of certain immovable property other than agriculture land | 50 lakh | 1 | – |
194IB | Rent by Individual/HUF | 50000 per month | 5 | – |
194IC | Payment under Joint Development Agreements to Individual/HUF | – | 10 | – |
194J | Professional Fees | 30000 | 10 | – |
194J | Technical Fees (w.e.f. 01.04.2020) | 30000 | 2 | – |
194J | Payment to call centre operator (w.e.f. 01.06.2017) | 30000 | 2 | – |
194J | Director’s fees | – | 10 | – |
194K | Payment of any income in respect of (a) units of a mutual fund as per section 10(23D); or (b) the units from the administrator; or (c) units from specified company (w.e.f. 01.04.2020) | 5000 | 10 | – |
194LA | Compensation on transfer of certain immovable property other than agriculture land (TDS exempted if covered under RFCTLARR Act w.e.f. 01.04.2017) | 250000 | 10 | – |
194LB | Income by way of interest from infrastructure debt fund | – | – | 5 |
194LBA | Income from units of business trust -interest received or receivable from a special purpose vehicle; or – dividend referred to in sub-section (7) of section 115-O | – | 10 10 | 5 10 |
194LBA | Distribution of rental income to unit holders – Other than Company – Company | – | 10 10 | 30 40 |
194LBB | Income in respect of units of investment fund – Other than Company – Company | – | 10 10 | 30 40 |
194LBC | Income in respect of investment in securitization fund – Individual/HUF – Company – Other Person | – | 25 30 30 | 30 40 30 |
194LC | Income by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India | – | – | 5 |
194LC | Income by way of interest by an Indian specified company on rupee denominated bond / any long-term bonds from outside India, which is listed only on a recognized stock exchange located in any International Financial Services Centre | – | – | 4 |
194LD | Interest on certain bonds from Govt. securities | – | – | 5 |
194M | Certain payments by Individual/HUF | 50 lakh | 5 | – |
194N | Payment of certain amount in cash | 1 Crore | 2 | 2 |
194N | Payment of certain amount in cash (first proviso of section 194N)if- – Amount is more than Rs.20 lakh but up to Rs. 1 crore – Amount exceeds Rs. 1 crore | 2 5 | 2 5 | |
194-O | Applicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (w.e.f. 01.04.2020) | – | 1 | – |
194-P | Deduction of tax in case of Spesified senior citizen [Change will applicable from 1st April, 2021.] | – | Applicable rates in force | – |
194Q | Payment of certain sum by the buyer to the seller (resident Indian) for purchase of goods [Change will applicable from 1st July, 2021.] | 50 lakh | 0.1 | – |
195 | Income of Investment made by an NRI | – | – | 20 |
195 | Long-term capital gain – Under Section – 115E/112(1)(c)(iii)/112A – Any Other Gains | – | – – | 10 20 |
195 | Short-term capital gain – 111A | – | – | 15 |
195 | Royalty | – | – | 10 |
195 | Fees for technical services | – | – | 10 |
195 | Interest income payable by Govt./Indian concern (other than section 194LB or 194LC) | – | – | 20 |
195 | Any Other Income – Other than Company – Company | – | – – | 30 40 |
196A | Income in respect – – of units of a Mutual Fund specified under clause (23D) of section 10; or – from the specified company referred to in the Explanation to clause (35) of section 10 | – | – | 20 |
196B | Income from units to an offshore fund | – | – | 10 |
196C | Income from foreign currency bonds or GDR of an Indian company | – | – | 10 |
196D | Income of foreign Institutional Investors from securities (not being dividend or capital gain) | – | – | 20 |
BENIFITS OF TDS RETURN FILLING:
Tax Deducted at Source depends on the amount an individual earn. Both the government and the tax payers enjoy benefits of TDS return filing. When an individual make payment via cheque, cash or credit card, a certain amount of tax is deducted this gets deposited to Income tax department.
Following are the benefits of TDS return filing: –
- Filing TDS return helps the government agencies prevent people or entities from tax evasions. The government agencies keep track of the TDS filed by the individuals or entities and if someone has missed the due date of filing TDS a penalty will be imposed on such person.
- Filing TDS returns provide government of India a steady source of revenue, as the TDS is filed every month by the dedcutors who come under the prescribed slab. It helps the government to keep track and record the people who are filing TDS regularly.
- Filing TDS returns widens the base of tax collection for the government. As the TDS is filed by the employer and a certificate is provided for the same to the employee whose TDS ID filed so there are less chances of Tax evasion and increases the number of Tax payers in the country.
- The tax collection agencies have a huge responsibility to keep an eye on every earning person who comes under taxpaying slab to make sure that the tax is paid, so the TDS return filing makes it easy for the tax agencies as well as for the deductor as the tax is deducted at the time of payment.
- The TDS return is filed by the Deductor on the income of the Dedcutee so the Deductee does not have to file tax again and the job of deductee as tax is deducted automatically.
FAQs FOR tDS RETURN
Q1. What are TDS returns?
The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.
Q2. Is TDS return monthly?
The TDS return for the same is filed on a quarterly basis. Thus, for the taxes deducted in the months of April, May and June, the TDS return is required to be filed in July.
Q3. What is TDS return due date?
For the second quarter (Q2) of Financial Year (FY) 2022-23 (July-September), the CBDT has extended the deadline for submitting the TDS Return/ Statement in Revised/ Updated Form 26Q, applicable to non-salary deductions of tax at source, from 31 October 2022 to 30 November 2022.
Q4. Who is eligible for TDS return?
Employers and organisations with a valid TAN are qualified for filing TDS returns. Individuals whose accounts are audited under Section 44AB, and hold an office under the government or companies are liable to file online TDS return every quarter.
Q5. What are types of TDS?
There are two types of TDS certificates: Form 16 and Form 16A. A certificate must be submitted to the deductee under Section 203 of the Income Tax Act, 1961, showing the amount that has been deducted (subtracted) as tax. This form must be provided to the deductee by the deductor.
Q6. Is TDS return compulsory?
TDS return filing is compulsory for all the assessees who fall under the tax slab as prescribed by the Income Tax Department. It is compulsory to e-file the TDS returns and it can be done through the official Income Tax e-filing portal. It is mandatory that the TDS returns are submitted on time by the deductors.
Q7. What is 24Q and 26Q?
Form 24Q should be filed and submitted for Return of Tax Deducted at Source on salary payments. Form 26Q, on the other hand, should be filed and furnished for Return of Tax Deducted at Source details on domestic payments other than salary.
Q8. What is TDS certificate?
Form 16/ 16A is the certificate of deduction of tax at source and issued on deduction of tax by the employer on behalf of the employees. These certificates provide details of TDS / TCS for various transactions between deductor and deductee.
