1
Action Details
Obtain TAN First time deductors should apply for TAN within one month from the end of the month in which the tax was first deducted or collected.
Register on the departmental website TRACES (www.tdscpc.gov.in).
Deduct tax at the applicable rates
Deposit the tax in government account using challan No. 281
Collect PAN of the deductee
Collect PAN of the deductee (payee) and Quote it correctly in the quarterly statements & certificates
RESPONSIBILITIES OF A DEDUCTOR
2
Action Details
File quarterly statements before the prescribed dates
i. Furnish particulars of Book Identification Number, ii. Challan Identification Number (CIN)
(in case of a Govt. Deductor) mark relevant flags for lower deduction or no deduction certificates issued by the AO (TDS), 15G/15H forms received, in the quarterly statements.
Issue TDS/TCS certificates on time after downloading it from TRACES
Quote correct TAN In challans, TDS certificate and quarterly statements.
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TDS provisions at a glance
Section Nature of Payment Deductor Deductee Threshold TDS Rates
192 Salary
Any persons responsible for making such payment
All persons
2,50,000/- Total income
194A
Interest other than Interest on Securities
I. Any person other than individual/ HUF 2 Individual and HUF to whom section 44AB applicable
All residents
If payer a Bank / post office 50,000/- for resident senior citizen / 40,000/- for Others. for other payer 5,000/-
10% in respect of bank & post office, aggregates of all deposits on one name for TDS.
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Section Nature of Payment Deductor Deductee Threshold TDS
Rates
194C
Contract for carrying out work
Any person being a specified person including individual HUFs, AOP/BOI to Whom 44AB applicable
All residents
Single Payment exceeding 30,000/- or Total payment exceeding 1,00,000/-during the year
1%: Ind./ HUF 2%: Other
194H
Commission 0r Brokerage
1. Any Person other than individual and HUF 2.Individual and HUF to Whom 44AB applicable
All residents
15,000/- 5%
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Section Nature of Payment
Deductor Deductee Threshold TDS Rates
194I Rent
1. Any Person other than individual/HUF 2. Individual and HUF to whom 44AB applicable
All residents
1,80,000& Rs. 2,40,000 during the FY 2019-20
Land/ Building/ Furniture 10% Plant & Machinery 2%
194IA
Transfer
of
immovable
property
Any person being
transferee
responsible for
paying to resident
transferor sum
exceeding Rs. 50
lakhs even in
installment for
transfer of
immovable
property
All
residents
Value
of
Propert
y is
more
than 50
lakhs
1%
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Section Nature of Payment Deductor Deductee Threshold TDS
Rates
194IB
Payment of rent by individual /HUF not liable to tax audit
Individual\ HUF responsible for paying monthly rent of Rs. 50,000/- or more
All residents
Monthly rent exceeding Rs. 50,000/-
5%
194IC
Payment of monetary consideration under Joint Development Agreement
The person responsible for making such payment
All residents
On all payments
10%
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Section Nature of Payment Deductor Deductee Threshold TDS
Rates
194J
Fees for Professional\ Technical services/ Non-compete fees & Royalty
1. Any Person other than individual and HUF 2. Individual and HUF to whom 44AB applicable
30,000/- During the year
10% 2%If payee engaged in the business of operation of call centre
194J
195 Other sums payable to non-resident
The person responsible for making such payment
On all payments
At the rates in force
195
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Section Nature of Payment Deductor Deductee Threshold TDS
Rates
194M Payments to Contractors
and Sub-contractors or Fees for
Professional or Technical
Services
Individual or Hindu
Undivided family
Any Resident 50 lakhs 5 %
194N Payment of sums in Cash
a)Banking Company
b) Co-operative
Society c) Post office
To any person whom payment of aggregate of
sums , in cash, in excess of one
crore rupees is made
One crore 2 %
• In section 194DA, the rate of deduction is increased from “one per cent” of total sum , to “five per cent” on the amount of income comprised therin under Life Insurance Policy.
• In section 194IA , in Explanation, after clause (a), the following clause is inserted;
(aa) “consideration for immovable property” shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property.
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Due dates for filing of Quarterly Statements
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Form
No. Particulars Due date for furnishing
statement
24Q Quarterly return of TDS
from Salaries Quarter 1:- July 31st Quarter 2:- October 31st Quarter 3:- January 31st
Quarter 4:- May 31st
26Q Quarterly return of TDS in
respect of all payments other than Salaries
27Q Quarterly return in respect of payments made to Non
resident
27D issuance of Certificate of TCS July 31st , October 31st , January 31st , May 31st
27EQ Quarterly Return of TCS July 15th, October 15th, January 15th , May 15th
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Tax deducted/collected by Government office
Tax deposited without challans/book entry Same day
Tax deposited with challan 7th of the next month from the end of the month in which deduction is made
Tax on perquisites opted to be deposited by the employer
7th of the next month from the end of the month in which deduction is made
Tax deducted/collected by Other
Tax deductible in March 30th April of next FY
Other months & Tax on perquisites opted to be deposited by the employer
7th of the next month from the end of the month in which deduction is made
Transaction of purchase of immovable property
7th of the next month from the end of the month in which deduction is made
Transaction of Rent above Rs. 50,000 Within 30days from end of the month in which deduction is made
Sr. No.
Form Periodicity Due Dates
1 16 Annual By the 15th day of June of the FY immediately following FY in which income was paid and tax deducted
2 16A Quarterly Within 15days from the due date of furnishing the statement of TDS
3 16B After deduction u/s. 194IA
Within 15days from the due date of furnishing form 26QB
4 16C After deduction u/s. 194IB
Within 15days from the due date of furnishing form 26QC
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Default Section Nature of demand
Quantum of levy/prosecution
Failure to deduct TDS
201(1) Tax demand
Equal to tax amount deductible but not deducted
201(1A) Interest @1% per month or part of month of tax deductible from date of tax deductible till date of tax deducted
271C Penalty Equal to tax amount deductible but not deducted
Failure to deposit TDS on or before due date
201(1) Tax demand
Equal to tax amount deducted but not deposited
201(1A) Interest @1.5 % per month or part of month of tax not deposited from date of deduction till date of deposit
276B Prosecution Rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 yrs. & with fine 14
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Expenditure claimed disallowed
As per section 40(a)(ia) of the IT Act, 30% percent of any expenses paid to a resident, on which TDS is applicable and TDS not deducted or, after deduction not paid shall be disallowed
Assessee in default Section 201(1)
An assessee shall be deemed to be in default in respect of :
Non deduction of tax at source
Non payment, in whole or in part, of the tax deducted
Consequences of Assessee in default- Assessee liable for recovery proceedings
Default Section Nature of demand
Quantum of levy/prosecution
Failure to apply for TAN or quote the correct TAN
272BB Penalty Rs. 10,000/-
Failure to deliver copy of declaration u/s 197A
272A(2)(f) Penalty 100/- for every day during which failure continues subject to the max. of TDS amount
Failure to issue TDS Certificate u/s 203
272A(2)(g) Penalty 100/- for every day during which failure continues subject to the max. of TDS amount
Failure to issue statement of perquisites u/s 192(2C)
272A(2)(i) Penalty 100/- for every day during which failure continues subject to the max. of TDS amount
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Default Section Nature of demand
Quantum of levy/prosecution
Failure to deliver or cause to be delivered a statement (Form 24Q, 26Q, 27Q, 27A, 27EQ & 26B) within the prescribed time u/s 200(3)/206C(3)
234E Levy of fees
200/- for every day during which the failure continues subject to the max. of TDS amount
Failure to deliver or cause to be delivered a statement (Form 24Q, 26Q, 27Q, 27A, 27EQ & 26B) within the prescribed time u/s 200C(3) or furnishes incorrect statement
271 H Penalty 10,000/ to 1,00,000/-
Consequences of non-compliance with TDS provisions cont….
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S.N. Nature of Goods/contract Rate
1 Alcoholic Liquor for human consumption 1.0% 2 Tendu leaves 5.0% 3 Timber obtained under a forest lease 2.5% 4 Timber obtained by any mode other than under a forest lease 2.5% 5 Any other forest produce not being timber or tendu leaves 2.5% 6 Scrap 1.0% 7 Leasing of Parking lot 2.0% 8 Leasing of Toll plaza 2.0% 9 Leasing of Mining and quarrying 2.0% 10 Minerals, being coal or lignite or iron ore 1.0%
11 Bullion if consideration (excluding any com/article weighting 10 grams or less} exceeds Rs. 2 Lakhs
1.0%
12 TCS on sale in cash of any goods (other than bullion / jewellery) exceeding Rs. 2 Lakhs
1.0%
13 TCS on providing of any services (other than Ch-XVII-B) exceeding Rs. 2 lakhs
1.0%
14 TCS on Motor Vehicle exceeding Rs. 10 Lakhs 1.0% 18
Due Dates for TCS statements and certificates
For the quarter ending 30thJune 30thSeptem
ber 31stDecem
ber 31stMar
ch
Due date of for
issuance of
Certificate of TCS
|Form27D)
30th
July 30th
October 30th
January
30th
May
Due date for
Filing statement
(Form27EQ)
15th July 15th October
15th January
15th May
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TCS defaults and consequences
Default Section Nature of demand
Quantum of levy/prosecution
Failure to do TCS 206C(6) Tax demand
Equal to tax amount collectible but not collected
Failure to do TCS or deposit TCS
206C(7) Interest @1% per month of tax collectible.
Failure to do TCS 271CA Penalty Equal to tax amount collectible but not collected
Failure to deposit TCS
206C(6A) Tax demand
Equal to tax amount not deposited
Failure to deposit TCS
276BB Prosecution
Rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 yrs. & with fine 20
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Default Section Nature of demand
Quantum of levy/prosecution
Failure to issue TCS Certificate u/s 206C
272A(2)(g)
Penalty 100/- for every day during which the failure continues
Failure to delivery copy of declaration u/s 206CI1A)
272A(2)(j)
Penalty 100/- for every day during which the failure continues
Failure to deliver statement u/s 206C(3) applicable upto FY 2011-12
272A(2)
(K)
Penalty 100/- for every day during which failure continues subject to the maximum of TCS amount
Failure to deliver or cause to be delivered statement within the prescribed time u/s 206C(3)
234E Levy of fees
200/- for every day during which the failure continues subject to the max. of TCS amount
Failure to deliver or cause to be delivered a statement (Form 27A & 27EQJ within the prescribed time u/s 206C(3) or furnishes incorrect statement
271 H Penalty 10,000/ to 1,00,000/-
Sr. No
Change Guidelines for compounding,
2014
Guidelines for compounding under Direct Tax Laws, 2019
1 Effective Date Applications received after
01.01.2015
Applications received after 17.06.2019
2 Payment of Outstanding Demand
No time Once compounding application filed, applicant has to clear all outstanding demand along with interest u/s 220 within 30 days of intimation of demand by AO.
3 No. of times for which offence can be compounded for Category A offence
max 3 occasions max 3 occasions and on more occasions in exceptional circumstances, approval of
Committee referred in para10.
4 Limitation to file compounding application after complaint filed in court
Within 12 months
Beyond that FM approval
required
Within 12 months after 12 months & before 24 months- competent authority is Committee referred in para 10 Beyond that FM approval required
22
Sr. No
Change Guidelines for compounding
under Direct Tax Laws, 2014
Guidelines for compounding under Direct Tax Laws, 2019
5 Time to pay compounding charge by the
assessee
60 days 60-120 days if time
allowed by Pr.CCIT Further extension-
if permitted by Member(Inv), CBDT
1 month Upto 2-3 month- if time allowed by Pr.CCIT Upto 3-12 months - if time allowed by Committee as per para 10 beyond 12 months- if permitted by Member(Inv), CBDT
6 Additional Compounding
Charge
if paid after 60 days of intimation - 2% per
month additional compounding charge
on the unpaid amount
if paid after one month of intimation- 2% per month on the unpaid amount
if paid after 3 months of intimation- 3% per month on the unpaid amount
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Sr. No
Change Guidelines for compounding
under Direct Tax Laws, 2014
Guidelines for compounding under Direct Tax Laws, 2019
7 Compounding Charges u/s 276B/276BB
3% of tax in default for first offence and 5% for subsequent offences of tax in default
2% of tax in default if Assessee suo-moto files application 3% of tax in default for first offence and 5% for subsequent offences of tax in default
8 Compounding Charges where
extension has been provided for payment of
compounding fees
Normal compounding
charges
1.25 times of the Normal compounding charges
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