TDS.ppt.ppt - 194A Int. other than Int. on securities by qingyunliuliu

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									TAX DEDUCTION AT
       SOURCE

       ROLE

        AND

RESPONSIBILITIES




    Shripad Godbole & Associates
Tax deduction at Source


   Rationale behind Provisions Tax
    deduction at source

   Responsibility

   Deduction and Payment

   Person Responsible for
    deducting Tax at source

   Section 203A-TAN




              Shripad Godbole & Associates
    New Method- Deferred Now



     Circular No.2 dated 21.5.2009

    The quantity and quality of
     data flowing through this
     module is far from satisfactory.


    The data is largely unverifiable.
     The matching of the deduction
     reported by the deductor and
     claimed by the deductee
     /assessee continuous to be
     poor for the following reasons:-


              Shripad Godbole & Associates
(i) Non-compliance, especially
   by Government deductors,
   with TDS return filing
   requirement.

(ii) Low quoting of PAN
   number in TDS returns that
   are filed on account of non-
   furnishing of PAN by
   deductees to their deductors
   and negligence by deductors.

(iii) Defects noted by CBDT
   about compliance by Govt.
   Depts. both Central & State.



          Shripad Godbole & Associates
(iv)The Central Government
  Ministries, departments and
  their sub-ordinate and
  attached offices are large scale
  defaulters in complying with
  the TDS information reporting
  requirements

(v) Even the certificates issued
  by these organisations are
  often illegible and of poor
  quality

(vi) These are unreliable.

(vii) This has been a constant
  source of public grievance


            Shripad Godbole & Associates
Issues- State Government
   Unlike the Central
    Government, the State
    Government is required to
    make a consolidated payment
    of the TDS amount in respect
    of all its deductors and
    deductions directly into the
    Reserve Bank of India.

   This is done by the
    Accountant General of the
    State. As a result, there is no
    correlation between the
    deduction, payment and
    reporting.


              Shripad Godbole & Associates
   Further, compliance by State
    Governments with the TDS
    information reporting
    requirement is no better than
    in the case of the Central
    Government
   The new system has been
    harmonized for all deductors
    (including Central and State
    Governments).




            Shripad Godbole & Associates
Therefore, like non-
 governmental tax deductors,
every deductor in the Central
and State Government have
also been made responsible
for making direct payment of
TDS in the bank.
They are no longer allowed to
make payments of the TDS and
TCS by making book
adjustments or consolidated
payments.

As a result, the TDS payment
and information reporting
system will be uniform across
deductors.


         Shripad Godbole & Associates
   Rule 30 and Rule 37 CA of the
    Income-tax Rules, 1962 have
    been substituted to provide,
    inter alia, for the following: -
   ( a) All sums of tax deducted
    at source under Chapter XVII-
    B and of tax collected at source
    under Chapter XVII-BB shall,
    in general, be paid to the
    credit of the Central
    Government within one week
    from the end of the month in
    which the deduction, or
    collection, is made.
   The same time limit for
    payment will also apply for
    income-tax due under sub-
    section (1A) of section 192.


              Shripad Godbole & Associates
   (b) It is mandatory for all
    deductors (including Central
    Government and State
    Governments) to pay the
    amount by electronically
    remitting it into the RBI, SBI or
    any authorized bank.

   (c) It is mandatory for all
    deductors (including Central
    Government and State
    Governments) to make the
    payment by electronically
    furnishing an income-tax
    challan in Form No. 17.




             Shripad Godbole & Associates
   In the process of electronically
    furnishing the income-tax
    challan in Form No. 17, the
    deductor will be
    simultaneously required to
    furnish to the Taxpayer
    Information Network (TIN)
    system maintained by National
    Securities Depository Limited
    (NSDL) either through screen
    based upload or file upload.
   Three basic information relating
    to the deduction i.e., PAN,
    name of the deductee and
    amount of TDS/TCS


             Shripad Godbole & Associates
   Upon successful remittance
    of the TDS/TCS to Central
    Government account and the
    uploading of the basic
    information as mentioned
    above to the TIN system,
    every deduction record will
    be assigned a unique
    transaction number (UTN).

   NSDL will create a facility to
    e-mail the UTN file to the
    deductor if the e-mail
    address of the deductor is
    available with them.


             Shripad Godbole & Associates
    They will also create a
    facility for the deductor to
    download the UTN file

   The UTN will be required to
    be quoted by the deductor on
    the TDS/TCS certificate
    issued by him to the
    deductee.

   NSDL will also create a
    facility to allow independent
    viewing of the UTNs by the
    deductee.


             Shripad Godbole & Associates
   Every person (including
    Central Government and
    State Government) who has
    obtained a Tax Deduction or
    Collection Account Number
    (TAN) shall electronically
    furnish a quarterly
    statement of compliance
    with TDS provisions in Form
    No. 24C.

   It is mandatory for all TAN
    holders to furnish this form
    irrespective of whether any
    payment liable to TDS has
    been made or not.



           Shripad Godbole & Associates
   This form shall be furnished
    on or before the 15th July, the
    15th October, the 15th January
    in respect of the first three
    quarters of the financial year,
    respectively, and on or before
    the 15th June following the
    last quarter of the financial
    year.
   This e-form No. 24C has to be
    furnished at
    http://incometaxindiaefiling.
    gov.in.




            Shripad Godbole & Associates
   In order to enable the deductor to
    furnish the UTN to the deductee,
    the existing Form 16 and Form
    16A have been appropriately
    modified

   The quarterly returns of TDS and
    TCS hitherto required to be filed
    in Form No. 24Q, Form No. 26Q,
    Form No. 27Q and Form No.
    27EQ shall now be required to be
    filed for all quarters on or before
    the 15th June following the
    Financial Year. Effectively, the
    quarterly returns have now been
    replaced by an annual return .




              Shripad Godbole & Associates
Relevant Sections

Section                  Particulars

192                      Salaries

194A                     Interest

194C                     Contractors

194H                     Commission

194I                     Rent

194J                     Professionals

194LA                    Compensation
                         for acquisition

          Shripad Godbole & Associates
    REQUIREMENT OF PAN
    Section 206AA
-    Every person whose receipts are
     subject to TDS should have PAN
-    If PAN is not submitted to the
     deductor, then the deductor will
     deduct tax at source at the higher
     of the following rates
a.   Rate prescribed in the act
b.   Rate mentioned in the finance act
c.   At the rate of 20%
-    This PAN will have to mentioned
     in form 15G or 15H
-    Applicable to NRI also


               Shripad Godbole & Associates
194A-Int. other than Int. on
securities
   If the interest in the financial
    year exceeds Rs.5,000/-.
   10% IT. At the time of credit
    or payment whichever is
    earlier.
   Within 1 week from the last
    day of the month in which
    deduction is made
   Form No. 16A to be issued
    within 30 days from the date
    of payment or consolidated
    TDS certificate to issued if so
    asked by payee.


              Shripad Godbole & Associates
Example- Section 194A

    Section 194A
    Nature of payment
    Interest on delayed payment
     charges, delay in payment of
     land acquisition compensation
    Interest payment:-
    Limit Rs. 5,000/-
    Interest paid in instalments

 Example:-
  Interest amount Rs. 10000

  TDS @ 10% Rs. 1000




             Shripad Godbole & Associates
Example 194A- contd.
    Section 194A
    Limit of Rs. 5000 not to be
     considered while deducting
     TDS
    Interest paid quarterly
    Total interest Rs. 12000
    Per quarter Rs. 3000
    TDS each quarter Rs. 300
    No Education cess or
     Secondary & Higher
     Education Cess applicable on
     interest due after 1.10.2009




             Shripad Godbole & Associates
TDS on Contractors w.e.f
1.10.2009
 1.   Rates: If recipient is an
      Individual or HUF, 1%. In all
      other cases, 2%
 2.   If recipient is a transport
      contractor and he furnishes
      his PAN to the payer, TDS
      rate is NIL
 3.   Tax is not required to be
      deducted if any single sum
      credited or paid does not
      exceed Rs. 20000/- or
      aggregate of such sums does
      not exceed Rs. 50000/- in a
      year
            Shripad Godbole & Associates
TDS on Contractors w.e.f
1.10.2009
   Contract with material given for
    Catering/advertisement/
    Broadcasting programmes/
    carriage of goods or
    Passengers/manufacturing or
    supplying of material as per
    specification of a customer by
    using material purchased from
    such customer
   a) Material value mentioned in
    the invoice
    b) Material value not mentioned
    in the invoice


              Shripad Godbole & Associates
TDS on Contractors w.e.f
1.10.2009

   In case of a), on the invoice value
    excluding the value of the
    material @ 2%
   In case of b), on the whole of
    invoice value @ 2%
   Form No. 16A to be issued
    within 30 days from the date of
    payment or consolidated TDS
    certificate to issued if so asked by
    payee




               Shripad Godbole & Associates
Example 194C
   194C- Payment to contractors
   a. Amount of a contract exceeds
    Rs. 20000/-
    b. If multiple contracts with a
    contractor, all less than Rs.
    20000 but total exceeds Rs.
    50000 p.a.
   1) Single contract of Rs. 45000
    TDS would be Rs. 900 @ 2%
   2) Multiple contracts
    a) First one Rs. 15000
    b) Second Rs. 18000
    c) Third Rs. 19000
        Total Rs. 52000

            Shripad Godbole & Associates
Examples Section 194C- contd


   TDS from the first payment RS.
    1500, second Rs. 1800 and third
    Rs. 1900/-
   No clarity about subsequent
    allotment of contracts:- first
    payments would be without
    TDS, but make up deficiency
    later on
   Eg. First and second Payment
    without TDS , TDS of RS. 5200/-
    will have to made from the last
    one.



             Shripad Godbole & Associates
Example Section 194C contd


   Contract with material given for
    Catering/advertisement/
    Broadcasting programmes/
    carriage of goods or
    Passengers/manufacturing or
    supplying of material as per
    specification of a customer by
    using material purchased from
    such customer
   a) Material value mentioned in
    the invoice
    b) material value not mentioned
    in the invoice



              Shripad Godbole & Associates
Example Section 194C contd


 In case of a), on the invoice value
  excluding the value of the
  material
 In case of b), on the whole of
  invoice value
 Example

 Total invoice value Rs. 125000

  It mentions material purchased
  from the customer Rs. 75000/-
  Tax would be deducted on Rs.
  50000( i.e. Rs, 125000- 75000)


             Shripad Godbole & Associates
Example Section 194C contd


   If the invoice mentions the value
    as Rs. 125000 but does not
    mention the value of the material
    separately, then TDS would be
    made on Rs. 125000/-




              Shripad Godbole & Associates
194H- Commission or
Brokerage
   At the time of credit or payment
    whichever is earlier when
    aggregate sums credited / paid
    during the financial year
    exceeds Rs.2500/-.
   At the rate of 10%
   Within 1 week from the last day
    of the month in which
    deduction is made
   Form No. 16A to be issued
    within 30 days from the date of
    payment or consolidated TDS
    certificate to issued if so asked
    by payee

             Shripad Godbole & Associates
194 I Rent


   Rent means any payment by
    whatever name called under any
    lease, sub-lease, tenancy or any
    other agreement for the use of
    any land, building, machinery,
    Plant, equipment, furniture or
    fittings

   At the time of credit or payment
    whichever is earlier when the
    aggregate sums credited/paid
    during the financial year exceeds
    Rs. 1,20,000/-.


              Shripad Godbole & Associates
Rent
Rates from 1.10.2009
- Use of Plant, machinery ,
  equipment- 2%
- Use of land, building furniture
  or fittings- 10%
 Payment Within 1 week from
  the last day of the month in
  which deduction is made
 Form No. 16A to be issued
  within 30 days from the date of
  payment or consolidated TDS
  certificate to issued if so asked
  by payee


            Shripad Godbole & Associates
Examples- Section 194I


   Minimum amount Rs. 120000 per
    annum
   Rate 10% for land or building
   Rate 2% for others
   Total rent paid for building Rs.
    240000 per annum
    TDS would be Rs. 24000
    This has to be deducted and paid
    monthly
    Thus monthly TDS would be Rs.
    2000( Rs, 24000/12)


             Shripad Godbole & Associates
Examples- Section 194I


2) - Rent for Building Rs. 90000/
  - Rent for furniture Rs. 40000/-
  - TDS would be Rs. 9000/- on
  Building and Rs. 800/- on
  furniture
3) Joint owners- if proved with
  documentary evidence
Total rent Rs. 220000/-
Two joint owners- individual rent
  Rs. 110000
TDS nil


            Shripad Godbole & Associates
Examples- Section 194I


4) Joint owners- if proved with
  documentary evidence
Total rent Rs. 250000/-
Two joint owners- individual rent
  Rs. 125000
TDS Rs. 12500 per annum




            Shripad Godbole & Associates
194 J Fees for Professional or
Tech. services

   At the time of credit or payment
    whichever is earlier when the
    aggregate sums credited/paid
    exceeds Rs. 20,000/-.
   At the rate of 10% as I T
   Form No. 16A to be issued
    within 30 days from the date of
    payment or consolidated TDS
    certificate to issued if so asked by
    payee




               Shripad Godbole & Associates
Examples- Section 194J


   Professionals – Minimum
    amount Rs. 20000/- per year
   Rate 10%
   Person specific
   Amount of fees Rs. 25000
    TDS would be Rs. 2500/-
   If on a monthly retainership
    basis ; - per month Rs. 5000/-.
    TDS would be Rs. 500/- per
    month and to be paid monthly



              Shripad Godbole & Associates
Examples- Section 194J


   There are multiple payments to a
    professional but it is not clear at
    the time of first or initial
    payments whether there would
    be further payments
   Payments:
    1) April Rs. 8000
    2) June Rs. 5000
    3) Oct Rs. 6000
    4) Mar Rs. 8000



              Shripad Godbole & Associates
Examples- Section 194J


   It is advised to make TDS from
    the first payment itself
   Thus TDS would be
   Payments:                   TDS
    1) April Rs. 8000           Rs. 800
    2) June Rs. 5000            Rs. 500
    3) Oct Rs. 6000             Rs. 600
    4) Mar Rs. 8000             Rs. 800
   If it is not done so, the entire TDS
    has to be paid from the last
    payment i.e. March eg. Rs.
    2700/-


               Shripad Godbole & Associates
Section 194LA- Compensation
for acquisition

   Compensation for compulsory
    acquisition under any law
   Any property other than
    agricultural land
   At the time of payment by any
    mode
   Aggregate amount should
    exceed Rs. 1,00,000/-
   Rate 10%
   Agricultural land as defined in
    Section 2(14) of Income Tax act



              Shripad Godbole & Associates
Section 192-TDS on Salaries
 1.   On Estimated Income from
      Salary for the Financial year
 2.   In equal monthly instalments
 3.   If an employee gives details
      of other income in Form 12B,
      the same will have to be
      considered. TDS amount can
      be enhanced or reduced
 4.   TDS amount to be paid on
      the same day if salary is by
      the Govt. or within seven
      days from the end of the
      month if others
 5.   Salary Certificate is to be
      given within 30 days from
      the end of the Financial year

            Shripad Godbole & Associates
Example Salary 1

   For Assessment Year 2010-2011
   Calculation of Income Tax in the
    case of a male employee where
    medical treatment expenditure
    was borne by the employer.

   Particulars :1.Gross Salary Rs.
    3,00,000/-

   2.Medical Reimbursement by
    employer on the treatment of self
    and dependent family member
    Rs. 30,000/-




              Shripad Godbole & Associates
   3.Contribution of GPF Rs.
    20,000/-
   4.LIC Premium          Rs.
    20,000/-5.Repayment of
    HBA Rs. 25,000/-
   6.Tuition fees for two
    children Rs. 60,000/-
   7.Investment in Unit-
    Linked Insurance Plan
    Rs. 20,000/-



           Shripad Godbole & Associates
   Computation of Tax
   Gross Salary       Rs. 3,00,000/-
   Add : Perquisite in respect of
    reimbursement of Medical Expenses in
    excess of Rs. 15,000/- in view of Sec.
    17(2)(v)          Rs. 15,000/-
   Taxable Income Rs. 3,15,000/-Less :
    Deduction u/s 80C :
   GPF 20,000/-
   LIC 20,000/-
   Repayment of HBA 25,000.
   Tuition Fees 60,000/-
   Investment in Unit-Linked Insurance
    Plan 20,000/-
        Total1,45,000/-
   Restricted to                       Rs.1,00,000/-
   Total Income                        Rs. 2,15,000


                Shripad Godbole & Associates
   Total IncomeRs. 2,15,000/-
   Tax PayableRs. 5,500/-
   Add :Education Cess @2%Rs.
    110/-
   Secondary and Higher
    Education Cess @1%Rs.
    55/-
   Total Income Tax payable
                 Rs. 5,665/-
   Rounded off to Rs.    5,660/-




           Shripad Godbole & Associates
Salary Example 2
   Particulars :
   Salary Rs. 3,00,000/-
   Dearness Allowance Rs.
    1,00,000/-
   House Rent Allow.Rs. 1,80,000/-
   Special Allowance Rs. 12,000/-
   Provident Fund Rs. 60,000/-
   Life Ins. Premium Rs. 10,000/-
   NSC VIII issue Rs. 30,000/-
   Rent Paid by the employee for
    house hired by her Rs. 1,20,000/-
   Repayment of House Building
    Loan (Principal)Rs. 60,000/
   Tuition Fees for three children
    (Rs.10,000/- per child)Rs.
    30,000/-


             Shripad Godbole & Associates
Salary Example 2
   Computation of total income and
    tax payable thereonGross
    salary(Basic + DA + HRA + SDA)
    Rs. 5,92,000/-
   Less : House rent allowance
    exempt U/s 10(13A)Least of
   :a. Actual amount of HRA
    received : 1,80,000
   b. Expenditure on rent in excess of
    10% of salary (including D.A.)
    assuming D.A. is including for
    retirement benefits ( 1,20,000 –
    40,000 ) : 80,000
   c 50% of Salary (including DA)
   =2,00,000 Rs.
   Least of the following (-)80,000/-


              Shripad Godbole & Associates
   Gross Total Income :
                    Rs. 5,12,000/-
   Less : Deduction u/s 80C :
   Provident Fund60,000/-
   LIP10,000/-
   NSC VIII Issue30,000/-
   Repayment of HBA60,000/-
   Tuition Fees (Restricted two
    children)20,000/-
   Total1,80,000/-
   Restricted to         Rs.
    1,00,000/-
   Total Income : Rs. 4,12,000/-


             Shripad Godbole & Associates
Salary Example 2


   Total Income Rs.    5,12,000/-
   Tax PayableRs. 33,400/-
   Add :Education Cess @2%Rs.
    668/-Sec& Higher Eduess @1% Rs.
    334/-
    Income Tax payable       Rs
    34,068/-.           Rounded off
    to    Rs. 34,070/-




             Shripad Godbole & Associates
Salary Example 2


   Supposing this person has an
    agricultural income of Rs.
    200000/-
   Tax will be calculated as under
   Tax on
   Taxable Income Rs. 412000
   Add: Agricultural Income Rs.
    200000/-
   Total Income Rs. 612000/- Tax
    due 87600



              Shripad Godbole & Associates
Salary Example 2
   Tax due on Agiculltural Income
    Rs. 200000/-
   Basic Limit Rs. 160000/-
   Total Rs. 360000/-
   Tax due on Rs.360000/- Rs.
    26000
   Tax due of Rs. 612000 Rs.
    87600/- minus tax due of RS.
    360000 Rs. 26000/- :- Rs.
    61,600/- This would be tax
    due.This would be enhanced by
    2% Edu cess and 1% Sec and
    High. Edu. Cess Rs. 1848/- Total
    tax due Rs. 63448/-

              Shripad Godbole & Associates
Estimation of Salary Income


   Salary
   Details of other income and TDS
    given in form 12B to be
    considered
   Allowances- Proofs for
    allowances spent
   Proofs for Investments




             Shripad Godbole & Associates
Income from House Property


   One Self Occupied House –
    Income Assessed NIL
   Two Houses- Both Self
    Occupied- One House Income
    Assessed NIL. Another House-
    Sum for which a house might be
    reasonable expected to be let out
    from year to year.
   Interest on Housing Loan for
    construction/purchase of House
    Property



              Shripad Godbole & Associates
Income from House Property


   Deduction for such interest
    eligible only if the house is
    complete
   Interest for the period up to the
    previous year in which Property
    is acquired / construction is
    completed – five equal
    installments from the year of
    completion,
   EMI and deduction not related
   Interest on HBA allowable on
    accrual basis



              Shripad Godbole & Associates
Deductions from Gross Total
Income

   Deductions from Gross Total
    Income
    - 80C
     a) Life Insurance Premium
      b) PF/PPF
      c) Housing Loan Instalment of
    a completed house
      d) Tuition Fees/ Mutual Funds
      e) Specific Term deposit in Bank
    or Bonds of NABARD
      f) Specified mutual funds




              Shripad Godbole & Associates
Deductions from Gross Total
Income
If House is transferred within 5
   years from the end of the
   financial year in which
   possession is obtained
If the insurance policy is
   terminated within 2 years of
   insurance
If ULIP is terminated within five
   years of commencement of plan
   due to non payment of
   contribution
Then deduction will not be
   allowed in the year of such
   termination and aggregate of
   deduction so far allowed shall
   be deemed to be income of the
   previous in which such
   termination takes place.
           Shripad Godbole & Associates
Deductions from Gross Total
Income

   80CCC- Pension Fund

    The total deduction of
    80C,80CCC and 80CCD not to
    exceed Rs. 1,00,000/-

   80D- Medical Insurance
    Maximum amount Rs.15,000/-

    Additional deduction upto
    Rs. 20,000/- if it is taken for
    the dependent parents who are
    senior citizens.


    -         Shripad Godbole & Associates
Deductions from Gross Total
Income
80DD
  Deduction in respect of
  maintenance including medical
  treatment of a dependent person
  with disability
  -Actually incurred expenditure
  and for medical treatment (
  Including nursing), training and
  rehabilitation of such dependent
      or
   - has made a deposit in a
  scheme framed by LIC or any
  other insurer
  Should attach a certificate issued
  by a appropriate medical
  authority

            Shripad Godbole & Associates
Deductions from Gross Total
Income
80 DDB Medical Treatment of a
  dependent
  - Actually paid an amount for
  the medical treatment of
  specified disease or ailment
  - Maximum amount Rs. 40000
  - Should attach a certificate in
  form 10I
-   80 E Interest on Education Loan
     Only in respect of Interest
     Self or spouse or children w.e.f.
    2008-09
     Period of allowability : Initial
    year and seven successive
    assessment years or till loan is
    repaid whichever is earlier,

              Shripad Godbole & Associates
Deductions from Gross Total
Income

- 80G Donations to Specific Funds
   only like Prime Minister’s
   National Relief Fund Only Govt
   funds No Private Funds, This is
   for Salary TDS purposes.
   Deduction in respect of other
   donations can be claimed by
   while filing the return.
- 80GG Rent paid where no HRA is
   paid, House is not owned by
   Spouse Child or HUF
   - 80U- Person with disability



           Shripad Godbole & Associates
Deductions from Gross Total
Income

80GG Rent paid
- Rent paid in excess of 10% of
  Salary
- Rent is paid for his own
  residence and Assessee files
  declaration in Form 11B
- Residential Accommodation is
  not owned by Himself, spouse or
  minor child
- HRA is not paid by the employer

- 25% of Total Income or Rs. 2000
  p.m. whichever is less

           Shripad Godbole & Associates
Deductions from Gross Total
Income

   Deduction u/s 80 U
-   The Assessee himself suffers
    from disability
-   Should be certified by a
    prescribed Medical Authority
-   Required to attach such
    certificate to the return of Income
-   Deduction Rs. 50,000
-   In case of severe disability RS.
    75,000/-



              Shripad Godbole & Associates
Estimation of Salary Income


  Rates for F.Y. 2009-10
 Normal Rates

 Income Upto Rs. 1,60,000 NIL
 Income between Rs. 1,60,000 to Rs.
   3,00,000 10%
  Income between 3,00,000 to Rs.
   5,00,000         20%
  Income Exceeding Rs. 5,00,000
   30%
  Basic limit is Rs. 1,90,000 for
   female assessees.



            Shripad Godbole & Associates
Other Important points
   Certificate for deduction at
    lower or nil rate Section 197
   Certificate for tax deducted at
    source- Important w.e.f.
    1.4.2010 no need to issue TDS
    certificate
   Duty of person responsible for
    deducting tax at source Section
    200
    - Payment of taxes within
    prescribed time
    - Filing of quarterly statements
    This non-filing may result into
    non-credit of TDS to the payee



            Shripad Godbole & Associates
Other Important points

   Certificate for Lower Deduction
    of Tax at source Application to
    Income Tax officer in form
    No.13
   This certificate is valid
    prospectively only
   Certificates of TDS to be issued
    within a month from the date of
    payment of TDS
   Consolidated certificate can be
    issued only if the payee informs
    in writing



             Shripad Godbole & Associates
Interest, Penalty
  Section 201(1A)
- For Delay in payment of TDS
- From the due date till the date of
   payment
- Interest rate 1% per month
 Penalty u/s 271C

- Fails to deduct tax at source
- Sum equal to amount of tax
 Penalty u/s 272A(2)(c)

- For non filing of return u/s 206
- Rs. 100 per day till the default
   continues




            Shripad Godbole & Associates
Interest, Penalty

 U/s 272A(2)(k)
- Non filing of quarterly returns
  by the
  Employer
-Rs. 100 per day till the default
  continues
Penalty u/s 272BB
- For non-compliance with
  provisions of Section 203A
- Rs. 10,000/-




           Shripad Godbole & Associates
Prosecution


   u/s 276B
   Failure to pay the tax so
    deducted
   Fine
   Rigorous imprisonment for term
    not less than three months but
    which may extend to seven years




             Shripad Godbole & Associates
E-Filing of TDS returns
   Rule 31A
   Person responsible for
    deducting tax
   Quarterly statement
     - Form 24Q- TDS for salaries
     - Form 26Q – TDS other than
    Salaries
   Dates: 15th July,15th October, 15th
    January and 15th June for Last
    quarter
   Person responsible for
    deducting tax shall quote TAN
    and PAN ,PAN of all deductees
    and details of Tax paid


              Shripad Godbole & Associates
E filing procedure


1.   Enter deduction details in the
     E – TDS return form
     - Date of deduction
     - Name of the party
     - Section under which tax is
     deducted
     - Gross amount of the bill
     - Rate at which tax deducted
     - Amount of TDS




             Shripad Godbole & Associates
E filing procedure

  2nd Step
  Enter challan details

   1. Date of payment
   2. Amount paid
   3. Section under which tax
   deducted
   4. BSR code
   5. Challan serial number
   6. Bank details from which
   payment made




           Shripad Godbole & Associates
E filing procedure


   Step 3
   Linking of challans and
    payments
   This step ensures that persons to
    whom payment is made, such
    payments and TDS made on
    those amounts are linked




              Shripad Godbole & Associates
E filing procedure

    Step 4
    Generate ― E-TDS return‖ as
     mentioned in the software
     which is used
    Download Challan CSI file
     from NSDL site. This file comes
     with in .csi format. Please do
     not open this file. Please save it
     as it is and not as ― Save as—‖
     way
    Run the E-TDS return as
     generated and csi file as
     downloaded by using your E-
     TDS software

              Shripad Godbole & Associates
E filing procedure


   If there are errors, then the same
    will be shown
   Those errors will have to be
    rectified. Unless these errors are
    rectified, fvu file for uploading
    on the NSDL site can not be
    created.
   If these files are run successfully,
    then fvu file and 27A would be
    generated by the software




               Shripad Godbole & Associates
E filing procedure


   If you are filing the E- TDS
    return by electronic form (
    copying on the CD) , then copy
    relevant form in PDF form, CSI
    file and FVU file on the CD.
    Duly printed, signed ( after
    affixing the rubber stamp) form
    27A alongwith the CD is to be
    sent to the authorised service
    provider.




              Shripad Godbole & Associates
E filing procedure


   There could be queries from the
    income tax department, if there
    is mismatch of data
   This mismatch could be on
    account of wrong section,
    amounts mismatch, period/
    assessment year, serial number
    of the challan given by the bank,
   There could be notices from
    Income Tax department for
    payment of interest




              Shripad Godbole & Associates
THANK YOU




Shripad Godbole & Associates

								
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