TDS Return
TDS Return stands for Tax Deducted at Source that means of collecting income tax in India, under the Indian Income Tax Act of 1961. Any company or person making a payment is required to deduct tax at source if the payment above the certain threshold limits. TDS Return has to be deducted at the rates fixed by the tax department. TDS Return is also known as Advance Tax.
Who is Deductor?
Deductor is a company or person that makes the payment after deducting TDS
Who is Deductee?
Deductee is a Company or person receiving the payment
What is TDS Return?
A Deductor has to deposit the TDS to the government and to be filed in the form of a TDS return. The particular nature of TDS deductions has to be filed using different TDS return forms. TDS filed a quarterly basis.
TDS Return is deducted on the following nature of payments:
- Contractor.
- Salaries.
- Interest payments by banks.
- Commission payments.
- Rent payments.
- Consultation Fees.
- Professional Fees.
| Section | Nature of Payment | Threshold Rs | Individual / HUF TDS Rate (%) | Others TDS Rate (%) |
|---|---|---|---|---|
| 194A | Interest (Banks) | 10,000 | 10 | 10 |
| 194A | Interest (Others) | 5,000 | 10 | 10 |
| 194C | Contractor – Single Transaction | 30,000 | 1 | 2 |
| 194C | Contractor – During the F.Y. | 100,000 | 1 | 2 |
| 194DA | Life insurance Policy | 100,000 | 1 | 1 |
| 194H | Commission / Brokerage | 15,000 | 5 | 5 |
| 194I | Rent of Land and Building F&F | 1,80,000 | 10 | 10 |
| 194I | Rent of Plant / Machinery / Equipment | 1,80,000 | 2 | 2 |
| 194IB | Rent by Individual / HUF (wef01.06.2017) | 50000/PM | 5 | – |
| 194IA | Transfer of certain immovable property other than agriculture land | 5,000,000 | 1 | 1 |
| 194J | Professional Fees / Technical Fees / etc. | 30,000 | 10 | 10 |
| 194J | Payment to Call Centre Operator | 30,000 | 2 | 2 |
The due date for depositing the TDS Return
TDS Return is to be deposited to the Government by the 7th of the month succeeding the tax period.
TDS Return Certificate
Types of forms:
- Form 16,
- Form 16A,
- Form 16 B, and
- Form 16 C
TDS certificates have to be compelled to be issued by someone deducting TDS Return to the assessee from whose financial gain TDS Return was subtracted whereas creating a payment.
Form 16 is issued by the employer to the employee.
| Form | Certificate of | constancy | Due date |
| Form 16 | TDS on salary payment | Yearly | 31st May |
| Form 16 A | TDS on non-salary payments | Quarterly | 15 days from the due date of filing return |
| Form 16 B | TDS on sale of property | Every transaction | 15 days from the due date of filing return |
| Form 16 C | TDS on rent | Every transaction | 15 days from the due date of filing return |
Under Section 234 E, you’ll pay a fine of Rs. 200/- per day till your TDS Return is filed. You have to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS.
The penalty for late filing of TDS Return:
If the taxpayer above a one-year time limit to file the TDS return or furnishes the wrong details of PAN No. , TDS amount, he/she will need to pay a penalty of maximum Rs. 10,000 to Rs. 1 lakh.
