ACCOUNTING & TAX
PROFESSIONAL TCS & TDS FILING
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OVERVIEW
TCS/TDS RETURN FILING
TCS and TDS are two of the most frequently used terms when discussing taxes. TCS stands for Tax Collected at Source, whereas TDS stands for Tax Deducted at Source.
TDS is the tax deducted from a company’s payment to an individual/vendor companies when the amount exceeds a predetermined threshold. Payments, including salary, rent, professional fees, brokerage commissions, etc., are subject to TDS deduction. Only payments that surpass a particular threshold are subject to TDS.
TCS is a tax that retailers must collect from customers when they make a purchase. Sales of goods like lumber, scrap, mineral wood, and other items are subject to the TCS reduction. Sales of particular goods without production or manufacturing materials are subject to TCS.
Every payer/deductor who collects TDS/TCS is required by the Income Tax Act to file their TDS or TCS return. Submitting their quarterly TDS/TCS returns by the specified deadlines is mandatory. The deductor/collector will be required to pay the penalty for the return’s late filing if a return is not filed by the deadline.
WHO CAN FILE
WHO CAN FILE A TDS RETURN?
The following deductors must compulsorily file their TDS Returns online:
- Governmental Bodies
- Company/Firm
- Individual/HUF
- Division/Branch of Company
- Body of Individuals
- Association of Person
- Trust
- Artificial Juridical Person
- Every person whose accounts must be audited
- Every other deductor whose returns for any quarter of the fiscal year contain 20 or more deductee records.
BENEFITS
BENEFITS OF FILING TDS/TCS
Prevents Tax Evasion
On-time TDS return filing aids the government in tracking records of the inflow of income, preventing tax evasion.
TDS/TCS is used to promote national welfare
The TDS/TCS Return filing amount is used for national welfare. It guarantees the government a reliable source of income.
Less Work for the Taxpayer
Since TDS/TCS is paid quarterly, there is no need to pay the whole amount of Tax all at once. This lessens the load on both the taxpayer and the tax collection/deduction organizations.
Enhances Efficient Tax Collection
TDS Return enhances efficient tax collection for welfare reasons. The convenience of the automated tax deduction for the Deductee.
PURCHASE OF PROPERTY
TDS ON SALE/PURCHASE OF PROPERTY
The following rates must be applied to TDS on any property sold by an NRI
|
Nature of Capital Gains |
TDS Rate on Sale of Property by NRI |
Description |
|
Long Term Capital Gains |
Property held for more than 2 years |
20% |
|
Short Term Capital Gains |
Property held for less than 2 years |
Income Tax Slab Rates of Seller |
When an Indian resident buys property from an NRI, they must deduct TDS at 20% if the property has been held for more than two years and at 30% if the property is being sold within two years. The deduction must include TDS plus surcharge, health, and education cess.
When a person purchases immovable property from an NRI in India, they are liable to deduct TDS on the entire sale consideration as provided under section 195 of the Indian Income Tax Act, 1961. The TDS on sale of property by NRI is required to be deducted under Section 195 and is ideally required to be deducted on the capital gains. However, this computation of capital gains cannot be done by the seller himself and should be done by the Income Tax Officer.
SELLER AND BUYER RESPONSIBLE
ASPECTS THAT THE SELLER RESPONSIBLE
The seller should keep the following things in mind while deducting TDS on a property sale made by an NRI.
- To reduce the amount of TDS that must be withheld, try to obtain the Certificate from the Income Tax Department for the computation of Capital Gains.
- The Form 13 must be presented with a number of supporting documents, such as the Purchase Price, Date of Purchase, and any expenses for renovations or construction, among others. After reviewing these records, the income tax officer will issue a certificate for a reduced TDS deduction if he is satisfied.
- If the seller is unable to obtain the certificate, the TDS will be subtracted from the sale price, which will result in an excessive TDS deduction.
- The seller must get Form 16A from the buyer in addition to the Property Registration Documents.
- If the seller plans to reinvest his capital gains in India, he can minimize them, which will result in less TDS and tax liability.
- In the event that the seller decides against this certificate, he may also seek for a refund of the extra TDS that was taken at the conclusion of the tax year. In the event that there are two sellers (i.e., co-owners), each one must submit a separate Form 13 in order to lower the TDS Rates.
- Both NRIs and OCI Card holders are covered by the lower TDS Certificate rules, and OCI Card holders can also take advantage of the benefit in the same way.
TAX RATES
TDS TAX RATES
When buying a property from an NRI, the buyer is responsible for a variety of duties.
Particulars |
TDS Rates (in %) |
|
|---|---|---|
|
1. In the case of a person other than a company |
|
|
|
1.1 where the person is resident in India- |
|
|
|
Section 192: Payment of salary |
Normal Slab Rate |
|
|
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee. |
10 |
|
|
Section 193: Interest on securities |
|
|
|
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; |
10 |
|
|
b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; |
10 |
|
|
c) any security of the Central or State Government; [i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018] |
10
|
|
|
d) interest on any other security |
10 |
|
|
Section 194: Income by way of dividend |
10 |
|
|
Section 194A: Income by way of interest other than "Interest on securities" |
10 |
|
|
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort |
30 |
|
|
Section 194BB: Income by way of winnings from horse races Section 194BB: Income by way of winnings from horse races |
30 |
|
|
Section 194C: Payment to contractor/sub-contractor |
|
|
|
a) HUF/Individuals |
1 |
|
|
b) Others |
2 |
|
|
Section 194D: Insurance commission |
5 |
|
|
Section 194DA: Payment in respect of life insurance policy w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out |
5 |
|
|
Section 194EE: Payment in respect of deposit under National Savings scheme |
10 |
|
|
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India |
20 |
|
|
Section 194G: Commission, etc., on sale of lottery tickets |
5 |
|
|
Section 194H: Commission or brokerage |
5 |
|
|
Section 194-I: Rent |
|
|
|
a) Plant & Machinery |
2 |
|
|
b) Land or building or furniture or fitting |
10 |
|
|
Section 194-IA: Payment on transfer of certain immovable property other than agricultural land |
1 |
|
|
Section 194-IB: Payment of rent by individual or HUF not liable to tax audit |
5 |
|
|
Section 194J: Fees for professional or technical services: |
i) 2 ii) 2 iii) 5 |
|
|
Section 194K: Income in respect of units payable to resident person |
10
|
|
|
Section 194LA: Payment of compensation on acquisition of certain immovable property |
10 |
|
|
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. |
10 |
|
|
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] |
10 |
|
|
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section 115TCA) |
25 in case of Individual or HUF |
|
|
Section 194M: Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. Tax shall be deducted under Section 194M with effect from 1/09/2019 when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh. |
5 |
|
|
Section 194N: Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office: |
i) 2 ii) 2/5 |
|
|
Section 194-O: Payment or credit of amount by the e-commerce operator to e-commerce participant |
1 |
|
|
Section 194P: Deduction of tax by specified bank in case of senior citizen having age of 75 or more |
Tax on total income as per rate in force |
|
|
Section 194Q: Payment for purchase of goods of the aggregate value exceeding Rs. 50 lakhs
Note: TDS is deductible on sum exceeding Rs. 50 lakhs
|
|
|
|
Section 194R: Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000 Note: Benefit or perquisite should be arising from business or the exercise of a profession by such resident. |
10 |
|
|
Section 194S: Payment on transfer of Virtual Digital AssetNote: No tax shall be deducted under this provision in the following circumstance: i) If the consideration is payable by any person (other than a specified person) and its aggregate value does not exceed Rs. 10,000 during the financial year.if the consideration is payable by a specified person and its aggregate value does not exceed Rs. 50,000 during the financial year. Specified person means: (a) An individual or a HUF, whose total sales, gross receipts or turnover does not exceed Rs. 1 crore in case of business or Rs. 50 lakhs in case of a profession, during the financial year immediately preceding the financial year in which virtual digital asset is transferred (b) An individual or a HUF who does not have any income under the head profits and gains of business or profession. |
1 |
|
|
Any Other Income |
10 |
|
|
1.2 where the person is not resident in India*- |
|
|
|
Section 192: Payment of Salary |
Normal Slab Rate |
|
|
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee. |
10 |
|
|
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort |
30 |
|
|
Section 194BB: Income by way of winnings from horse races |
30 |
|
|
Section 194E: Payment to non-resident sportsmen/sports association Section 194E: Payment to non-resident sportsmen/sports association |
20 |
|
|
Section 194EE: Payment in respect of deposits under National Savings Scheme
|
10
|
|
|
Section 194F:Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India |
20 |
|
|
Section 194G: Commission, etc., on sale of lottery tickets |
5 |
|
|
Section 194LB: Payment of interest on infrastructure debt fund |
5 |
|
|
Section 194LB: Payment of interest on infrastructure debt fund |
5 |
|
|
Sec. 194LBA(2): Payment of the nature referred to in Section 10(23FC)(a) |
5 |
|
|
Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b) |
10 |
|
|
Section 194LBA(3): Payment of the nature referred to in section 10(23FCA) by business trust to unit holders |
30 |
|
|
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. |
30 |
|
|
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) |
30 |
|
|
Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) |
5 or 4* |
|
|
Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor |
Section 195: Payment of any other sum to a Non-resident
|
|
|
a) Income in respect of investment made by a Non-resident Indian Citizen
|
20
|
|
|
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen |
10 |
|
|
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112
|
10
|
|
|
d) Income by way of long-term capital gains as referred to in Section 112A |
10 |
|
|
e) Income by way of short-term capital gains referred to in Section 111A
|
15
|
|
|
f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A
|
20 |
|
|
g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) |
20 |
|
|
h) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India |
10 |
|
|
j) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy
|
10
|
|
|
k) Any other income |
30 |
|
|
Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund |
30 |
|
|
Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) |
10 |
|
|
Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)
Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%.
|
2. In the case of a company- |
|
|
2.1 where the company is a domestic company-
|
|
|
|
Section 193: Interest on securities |
|
|
|
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; |
10
|
|
|
b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;
|
10 |
|
|
c) any security of the Central or State Government; [i.e. 8% Saving (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018] |
|
|
|
d) interest on any other security
|
10 |
|
|
Section 194: Dividend |
|
|
|
Section 194A: Income by way of interest other than "Interest on securities" |
10 |
|
|
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort |
30 |
|
|
Section 194BB: Income by way of winnings from horse races |
30 |
|
|
Section 194C: Payment to contractor/sub-contractor |
|
|
|
a) HUF/Individuals |
1 |
|
|
b) Others |
2 |
|
|
Section 194D: Insurance commission |
10 |
|
|
Section 194DA: Payment in respect of life insurance policy |
5 |
|
|
Section 194EE: Payment in respect of deposit under National Savings scheme |
10 |
|
|
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India |
20 |
|
|
Section 194G: Commission, etc., on sale of lottery tickets |
5 |
|
|
Section 194H: Commission or brokerage |
5 |
|
|
Section 194-I: Rent |
|
|
|
a) Plant & Machinery
|
2 |
|
|
b) Land or building or furniture or fitting
|
10 |
|
|
Section 194-IA:Payment on transfer of certain immovable property other than agricultural land Section 194-IA:Payment on transfer of certain immovable property other than agricultural land |
1 |
|
|
Section 194-IC:Payment of monetary consideration under Joint Development Agreements
|
|
|
|
Section 194J: Fees for professional or technical services: |
iv) 2 v) 2 vi) 10 |
|
|
Section 194K : Income in respect of units payable to resident person |
10 |
|
|
Section 194LA: Payment of compensation on acquisition of certain immovable property |
10 |
|
|
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. |
10 |
|
|
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] . |
10 |
|
|
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) |
10 |
|
|
Section 194M: Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.
Tax shall be deducted under Section 194M with effect from 1/09/2019 when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.
|
5
|
|
|
Section 194N: Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office: |
iii) 2 iv) 2/5 |
|
|
Section 194-O: Payment or credit of amount by the e-commerce operator to e-commerce participant |
1 |
|
|
Section 194P: Deduction of tax by specified bank in case of senior citizen having age of 75 or more |
Tax on total income as per rate in force |
|
|
Section 194Q: Payment to resident for purchase of goods of the aggregate value exceeding Rs. 50 lakhs |
0.1 |
|
|
Section 194R: Deduction of tax in case any benefit or perquisite is provided and aggregate value of such benefit/perquisite exceeds Rs. 20,000 |
10 |
|
|
Section 194S: Payment on transfer of Virtual Digital Asset |
1 |
|
|
Any Other Income |
10 |
|
|
2.2 where the company is not a domestic company*- |
|
|
|
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort |
30 |
|
|
Section 194BB: Income by way of winnings from horse races |
30 |
|
|
Section 194E: Payment to non-resident sports association |
20 |
|
|
Section 194G: Commission, etc., on sale of lottery tickets |
5 |
|
|
Section 194LB: Payment of interest on infrastructure debt fund |
5 |
|
|
Section 194LBA(2): - Payment of the nature referred to in Section 10(23FC)(a) |
10 |
|
|
Section 194LBA(3): Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders. |
40 |
|
|
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. |
40 |
|
|
Section 194LBC: Income in respect of investment made in a securitization trust (specified in Explanation of section115TCA) |
40 |
|
|
Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) |
5 or 4* |
|
|
Section 194LD:Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor |
5 |
|
|
Section 195: Payment of any other sum |
|
|
|
a) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112 |
10 |
|
|
b) Income by way of long-term capital gains as referred to in Section 112A |
10 |
|
|
c) Income by way of short-term capital gains referred to in Section 111A |
15 |
|
|
d) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33) , 10(36) and 112A |
20 |
|
|
e) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) |
20 |
|
|
f) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India |
10 |
|
|
g) Income by way of royalty [not being royalty of the nature referred to in point f) above] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy— |
|
|
|
A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976 |
50 |
|
|
B. where the agreement is made after the 31st day of March, 1976 |
10 |
|
|
h) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy— |
|
|
|
A. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976 |
50 |
|
|
B. where the agreement is made after the 31st day of March, 1976 |
10 |
|
|
Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) |
10 |
|
|
Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) Note: Tax shall be deducted at the rate provided under DTAA if same is lower than the existing TDS rate of 20%. |
20 |
TCS TAX RATES
TCS TAX RATES
Section |
Nature of Payment |
Threshold Limit |
Rates |
|---|---|---|---|
|
206C (1) |
Sale of Scrap |
NA |
1% |
|
206C (1) |
Sale of Tendu Leaves |
NA |
5% |
|
206C (1) |
Sale of Timber obtained under a forest lease or other mode |
NA |
2.50% |
|
206C (1) |
Sale of Any other forest produce not being Timber or tendu leaves |
NA |
2.50% |
|
206C (1) |
Sale of Minerals, coal lignite, Iron ore by a trader |
NA |
1% |
|
206C (1) |
Sale of Alcoholic Liquor for Human Consumption |
NA |
1% |
|
206C (1C) |
Lease or license of the Parking lot, toll plaza, mining & quarrying |
NA |
2% |
|
206C (1F) |
Sale Value of Motor vehicle whether in cheque or in any other mode of receipt Exceeding Rs. 10 Lakhs per transaction |
Rs 10 Lakhs per transaction |
1% |
|
206C(1G) |
Foreign remittance through Liberalised Remittance Scheme (LRS) of exceeding Rs. 7 Lakh in a financial year if the remitted amount is out of loan obtained from any financial institution u/s 80E to pursue any education |
NA |
0.5% |
|
206C(1G) |
Foreign remittance through Liberalised Remittance Scheme (LRS) of exceeding Rs. 7 Lakh in any other case |
Rs 7 Lakh |
5% |
|
206C(1G) |
Selling of overseas tour package |
NA |
5% |
|
206C(1H) |
Sale of goods (Other than those being exported) of value exceeding Rs. 50 Lakh where total Sale/ gross receipts/turnover from business exceeds Rs 10 Crore during immediately financial year |
NA |
0.1% |
DUE DATE
DUE DATE FOR FILING TDS & TCS RETURNS
Due Date for Filing TDS Returns
Quarter |
Quarter Period |
Quarter Ending |
Due Date |
|---|---|---|---|
|
1st |
April - June |
30th June |
31st July |
|
2nd |
July - September |
30th September |
31st Oct |
|
3rd |
October - December |
31st December |
31st Jan |
|
4th |
January - March |
31st March |
31st May |
Due Date for Filing TCS Returns
Quarter |
Quarter Period |
Quarter Ending |
Due Date |
|---|---|---|---|
|
1st |
April - June |
30th June |
15th July |
|
2nd |
July - September |
30th September |
15th Oct |
|
3rd |
October - December |
31st December |
15th Jan |
|
4th |
January - March |
31st March |
15th May |
PENALTIES
PENALTIES FOR TDS/TCS RETURNS
The following penalties will apply if there are delays in depositing TDS or mistakes in filing TDS returns:
- As per Section 234E of the Income Tax Act, you will be charged a late filing fee of INR 200 per day if your TDS returns are submitted after the deadline. There will be a cost from the day your return is filed until the day after the due date. However, the penalty sum cannot exceed the TDS amount.
- As per Section 271H, if inaccurate information has been provided, such as an incorrect PAN number or tax amount, a penalty of between INR 10,000 and INR 1 lakh can be imposed.
- Section 271H of the Income Tax Act does not apply if the following conditions are met:
- TDS/TCS is paid to the government’s credit
- TDS/TCS return is filed before the expiration of one year from the due date
- Interest and late filing fees (if any) have been paid to the government’s credit.
Due Date for Filing TDS Returns
Quarter |
Quarter Period |
Quarter Ending |
Due Date |
|---|---|---|---|
|
1st |
April - June |
30th June |
31st July |
|
2nd |
July - September |
30th September |
31st Oct |
|
3rd |
October - December |
31st December |
31st Jan |
|
4th |
January - March |
31st March |
31st May |
Due Date for Filing TCS Returns
Quarter |
Quarter Period |
Quarter Ending |
Due Date |
|---|---|---|---|
|
1st |
April - June |
30th June |
15th July |
|
2nd |
July - September |
30th September |
15th Oct |
|
3rd |
October - December |
31st December |
15th Jan |
|
4th |
January - March |
31st March |
15th May |
DEADLINE
DEADLINE TO DEDUCT AND PAY TDS
Nature of Default |
Nature of Default |
Interest subject to TDS/TCS amount |
Period for which interest is to be paid |
|---|---|---|---|
|
201(1A)(i) |
TDS not deducted (fully/partly) |
1% per month |
From the date on which tax is deductible to the date on which tax is actually deducted. |
|
201(1A)(ii) |
TDS not deposited to the government after deduction (fully or partly) |
1.5% per month |
From the date of tax deduction to the date of deposit |
TDS RETURN FORMS
TDS RETURN FORMS
Form Number |
Purpose |
|---|---|
|
Form 24Q |
TDS from salaries |
|
Form 26Q |
TDS on all payments apart from salaries |
|
Form 27Q |
Subtraction of tax from dividend, interest or any other amount payable to non-residents |
|
Form 27EQ |
Collection of tax at source |
CHALLAN STATUSES
TDS/TCS STATEMENT TYPES OF CHALLAN STATUSES
The following list includes the statuses that can be seen in the TDS/TCS statement:
Booked: The information on the challan or transfer voucher in the statement corresponds to the information that banks have provided.
- Match Pending: When the bank has not yet received the challan information.
- Match Failed (Challan): The TAN and amount associated with a challan in the statement do not match the information provided by the banks.
- Match Failed (Transfer Voucher): The amount on a transfer voucher does not match the information provided by the public affairs officer.
DOCUMENTS REQUIRED
DOCUMENTS REQUIRED TO FILE TDS/TCS RETURN
- TAN and PAN of company
- Pan of Authorized Signatory
- Last TDS/TCS filing details, if applicable
- Challan paid for the Quarter that has to be filed
- Details of Deductees
- Workings of Tax Deducted/Collected
- Name of the entity - Proprietorship/ Partnership/ Company/ LLP
- In case of e-filing, DSC or Adhaar OTP will be required.
TAXKEY SIMPLIFY
HOW CAN OUR TAXKEY SIMPLIFY THE FILING OF YOUR TDS/TCS?
The time limit for TDS deposition is the last day of every month.
In accordance with section 206AA, the deductor is required to withhold Tax at a higher rate of 20% if the Permanent Account Number is not disclosed.
Yes, provided the credit is shown on Form 26AS; if not, he can cross-check and make the appropriate claims. He must inform the deductor and resolve any discrepancies if there is any difference between the Tax actually deducted and the Tax reflected in Form 26AS.
The Income Tax Act states that a foreign resident is subject to the same normal rules as residents. Therefore, foreign nationals working in India will need a PAN card to avoid a 20% TDS deduction if a PAN is not provided and instead have TDS deducted at the usual rate.
Yes, the buyer can adjust the TCS later while making a payment towards their self-assessed Tax due in subsequent assessment years.
When you purchase cars or premium two-wheelers costing more than INR 10 lakhs, you must pay a 1% tax to the vendor, which will be deducted from their overall tax obligation.
Even if TDS is not applicable individually in this scenario, it is still relevant if the property is worth 90 lakhs and is being purchased by two buyers. TDS must be deducted by both buyers because the property's total value is greater than Rupees 50 lakhs.
It is not necessary for the purchaser to obtain a Tax Deduction Account Number. (TAN). To record the TDS, only the buyer's and seller's PAN are needed.
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