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Common points:
I. TDS to be deducted at time of payment or giving credit which ever is earlier.
II. Tax is not deductible on service tax [Only in case of Rent] – circular no. 4/2008, dated April 28/2008.
III. TDS of march month to be deposited by due date of return. TDS of month other than march to be deposited by march end, otherwise expense will be allowed in year of TDS deposit.
IV. No tax will be deducted on amount reimbursed to contractor. For instance; Out of pocket expenses reimbursed to CA
1.Expense incurred by contractor and directly recovered from contractee. Provided separate bill is issued in this respect.
V. For SC, EC & SHEC.
1.Surcharge (SC) will be levied if payment or credit exceeds Rs. 1 Crore to company or firm and Rs. 10 Lakhs in case of individual, AOP or BOI in Financial Year..
2.Education Cess (EC) will be levied @ 2%;
3.Secondary higher Education Cess (SHEC) will be levied @ 1%.
4.EC & SHEC will be levied in every case.
VI. For TDS deposit date.
1.TDS deducted in month to be deposited by 7th of following month.
However amount credited in payees account on 31st March can be deposited upto 31st May.
VII. Return of TDS.
1.Return to be filed quarterly within 15 days of expiry of quarter.
2.However last quarter return can be filed upto 15th of June.
W.e.f. October 09, Quarterly Statement [+ Annual Return] in lieu of Quarterly Return.
VIII. Return Forms
1.24Q in case of deduction from salary.
2.26Q in other cases.
IX. Tax Deduction Certificate will be issued by deductor in Form;
1. 16, in case of deduction from salary.
2. 16A, in other cases.
X. For lower or no deduction(Sec.197);
2.Payee will make application in Form-13 and assessing officer (A.O.) will directly issue the certificate u/s 197(1) to payer in this regard.
3.Interest on Fixed deposit, payee will make application in Form-15G. Senior Citizens can make application in Form-15H.
A. TDS on Salary u/s 192.
a. Tax to be deducted monthly will be equal to annual tax liability as divided by 12.
b. An employee can claim only following deduction to ask employee to deduct lower amount out of tax;
i. 80C
ii. 80D
1. 15000-00 + additional Rs. 5000-00 if amount invested for resident senior citizen
2. 15000-00 (for insurance of parents), additional Rs. 5000-00 if parents are senior citizen.
iii. 80DD
iv. 80E [For any study after 10+2]
v. 80GG
vi. 80U
c. For Previous Year2011-2012, rates of tax are as follows. W.e.f. A.Y. 2012-2013, No Surcharge on Income from salary.
B. TDS on Interest other than interest on securities(Sec.194A).
a. Tax will be deducted @10%, 20% in case the payee is company.
b. W.e.f. October 09, 10% in case the payee is company.
c. No deduction will be done;
i. If paid interest doesn’t exceed Rs. 10000-00 in F.Y. (Where payer is Bank).
ii. If paid interest doesn’t exceed Rs. 5000-00 in F.Y. (where payer is other than Bank).
iii. Where interest is paid to Bank or Financial Institutions.
iv. Where firm is paying interest to its partners.
C. TDS on contract u/s 194C.
a. Tax will be deducted @2%, 1% in case of advertisement contract and sub contract.
b. No deduction will be done in the event single credit or payment which ever is earlier doesn’t exceed Rs. 20000-00 and aggregate sum credited or paid in Financial Year doesn’t exceed Rs. 50000-00.
c. W.e.f. October 09, 1% in case payee is Individual or HUF and 2% otherwise.
d. W.e.f. October 09, no TDS on work contract [Goods+Service] if contractor has not received material from contractee.
D. TDS on commission u/s 194H.
a. Tax will be deducted @10%.
b. No deduction will be done in the event payment doesn’t exceed Rs. 5000-00 to payee in F.Y ( Rs. 2500.00 upto June 30,2010)
E. TDS on Rent u/s 194I
a. Tax will be deducted @
i. 10% in case of leasing of Plant, Machinery & Equipments.
ii. In case of leasing of Land, Building & Furniture rate will be 20% (if payee is domestic company) 15% in case payee is other than the domestic company.
b. No deduction will be done if the payment to payee doesn’t exceed Rs.180000-00 in F.Y.
c. W.e.f October 09, 2% in case of Plant, Machinery and Equipments Otherwise 10%.
F.TDS on Professional & Technical Fees. u/s 194J.
a. Tax will be deducted @ 10%.
b. No deduction will be done if payment to payee doesn’t exceed Rs. 30000-00 in F.Y.
Common points:
I. TDS to be deducted at time of payment or giving credit which ever is earlier.
II. Tax is not deductible on service tax [Only in case of Rent] – circular no. 4/2008, dated April 28/2008.
III. TDS of march month to be deposited by due date of return. TDS of month other than march to be deposited by march end, otherwise expense will be allowed in year of TDS deposit.
IV. No tax will be deducted on amount reimbursed to contractor. For instance; Out of pocket expenses reimbursed to CA
1.Expense incurred by contractor and directly recovered from contractee. Provided separate bill is issued in this respect.
V. For SC, EC & SHEC.
1.Surcharge (SC) will be levied if payment or credit exceeds Rs. 1 Crore to company or firm and Rs. 10 Lakhs in case of individual, AOP or BOI in Financial Year..
2.Education Cess (EC) will be levied @ 2%;
3.Secondary higher Education Cess (SHEC) will be levied @ 1%.
4.EC & SHEC will be levied in every case.
VI. For TDS deposit date.
1.TDS deducted in month to be deposited by 7th of following month.
However amount credited in payees account on 31st March can be deposited upto 31st May.
VII. Return of TDS.
1.Return to be filed quarterly within 15 days of expiry of quarter.
2.However last quarter return can be filed upto 15th of June.
W.e.f. October 09, Quarterly Statement [+ Annual Return] in lieu of Quarterly Return.
VIII. Return Forms
1.24Q in case of deduction from salary.
2.26Q in other cases.
IX. Tax Deduction Certificate will be issued by deductor in Form;
1. 16, in case of deduction from salary.
2. 16A, in other cases.
X. For lower or no deduction(Sec.197);
2.Payee will make application in Form-13 and assessing officer (A.O.) will directly issue the certificate u/s 197(1) to payer in this regard.
3.Interest on Fixed deposit, payee will make application in Form-15G. Senior Citizens can make application in Form-15H.
A. TDS on Salary u/s 192.
a. Tax to be deducted monthly will be equal to annual tax liability as divided by 12.
b. An employee can claim only following deduction to ask employee to deduct lower amount out of tax;
i. 80C
ii. 80D
1. 15000-00 + additional Rs. 5000-00 if amount invested for resident senior citizen
2. 15000-00 (for insurance of parents), additional Rs. 5000-00 if parents are senior citizen.
iii. 80DD
iv. 80E [For any study after 10+2]
v. 80GG
vi. 80U
c. For Previous Year2011-2012, rates of tax are as follows. W.e.f. A.Y. 2012-2013, No Surcharge on Income from salary.
| Particulars | Rate of Tax |
| For Salary upto 160000-00 | Nil |
| For Salary upto 190000-00, (in case of women assessee). | Nil |
| For Salary upto 240000-00, ( In case of resident senior citizen) | Nil |
| Rs. 160000-00 to Rs. 500000.00 | 10% |
| Rs.500001-00 to Rs. 800000.00 | 20% |
| Above Rs. 800000-00 | 30% |
B. TDS on Interest other than interest on securities(Sec.194A).
a. Tax will be deducted @10%, 20% in case the payee is company.
b. W.e.f. October 09, 10% in case the payee is company.
c. No deduction will be done;
i. If paid interest doesn’t exceed Rs. 10000-00 in F.Y. (Where payer is Bank).
ii. If paid interest doesn’t exceed Rs. 5000-00 in F.Y. (where payer is other than Bank).
iii. Where interest is paid to Bank or Financial Institutions.
iv. Where firm is paying interest to its partners.
C. TDS on contract u/s 194C.
a. Tax will be deducted @2%, 1% in case of advertisement contract and sub contract.
b. No deduction will be done in the event single credit or payment which ever is earlier doesn’t exceed Rs. 20000-00 and aggregate sum credited or paid in Financial Year doesn’t exceed Rs. 50000-00.
c. W.e.f. October 09, 1% in case payee is Individual or HUF and 2% otherwise.
d. W.e.f. October 09, no TDS on work contract [Goods+Service] if contractor has not received material from contractee.
D. TDS on commission u/s 194H.
a. Tax will be deducted @10%.
b. No deduction will be done in the event payment doesn’t exceed Rs. 5000-00 to payee in F.Y ( Rs. 2500.00 upto June 30,2010)
E. TDS on Rent u/s 194I
a. Tax will be deducted @
i. 10% in case of leasing of Plant, Machinery & Equipments.
ii. In case of leasing of Land, Building & Furniture rate will be 20% (if payee is domestic company) 15% in case payee is other than the domestic company.
b. No deduction will be done if the payment to payee doesn’t exceed Rs.180000-00 in F.Y.
c. W.e.f October 09, 2% in case of Plant, Machinery and Equipments Otherwise 10%.
F.TDS on Professional & Technical Fees. u/s 194J.
a. Tax will be deducted @ 10%.
b. No deduction will be done if payment to payee doesn’t exceed Rs. 30000-00 in F.Y.
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