setindiabiz

Tax Deducted at Source (TDS)TDS is deducted on the following types of payments

tusted by

Tax Deducted at Source (TDS)

TDS is an abbreviated form of Tax Deducted at Source which is required to be deducted while making payment to parties at a given rate. There are some identified expenses/payments against which income tax department has prescribed a specific rate of deduction and the threshold limit on which it is required to be deducted.

Every business, whether a startup or an existing company, is certain to incur some expenses or to make payments to its parties irrespective of its size and scale. Thus TDS provisions apply to all types and size of businesses. It applies in the same or similar way to a proprietor, firm, LLP or a company registered under the companies, Act. 2013. The payment of expense by a person is an Income in the hands of the recipient. Thus the payor is under a liability to deduct the tax at applicable rates while making payment to the party. For small payments, the provision of TDS does not apply until it crosses a threshold limit as prescribed. It must be noted that the TDS is applicable only on the specified payment and after it reaches the threshold limit. The most common types of expenses on which TDS is applicable is provided hereunder.

Request Quotation/Call Back
From Startup Specialist

Upto

5

Transaction

  • 199/-
    Per month
SUBSCRIBE
Upto

10

Transaction

  • 399/-
    Per month
SUBSCRIBE
Upto

25

Transaction

  • 999/-
    Per month
SUBSCRIBE
Upto

50

Transaction

  • 1,899/-
    Per month
SUBSCRIBE

Key Points of TDS Deduction & Payment

Payment of TDS Deducted

Payment of TDS Deducted

The tax deducted at source (TDS) while making payment to parties for qualified expenses must be deposited before 7th of next month. For example, the TDS deducted in November 2017 is payable on or before 7th December 2017. The challan number for making TDS deposit is 281. while making TDS Payment care must be exercised while selecting the appropriate section/nature of the payment.

The Consequence of Non-Compliance

The Consequence of Non-Compliance

The non-compliance of TDS provisions is a grave offence and is punishable under section 271 (C) of the Income Tax Act 1961, wherein the minimum penalty is 10,000 which can go up to Rs. 1,00,000/-. Further section 276B applies to all such cases where a willful default is established, in all those cases the punishment is 3 Years rigorous imprisonment which can go up to seven years.

Interest on Non Payment of TDS

Interest on Non Payment of TDS

The TDS deducted by a person need to be deposited within 7th day of the next month. Any failure or delay in depositing the TDS is punishable under section 271 C or/and Section 276 B. The defaulter is further liable to pay interest on delayed payment at the rate of 1.5% per month or part thereof. There is no provision in law where the interest can be waived; hence the assessee should be very careful.

Filing of TDS Return

Filing of TDS Return

After making the payment of TDS to the income tax, the taxpayer is required to file a quarterly return where the TDS deposited is mapped against the PAN of the person from which TDS was deducted. The TDS Return is filed within 30th of the month succeeding the quarter. For example, the first quarter ends on 30th June, hence the TDS Return must be submitted before 30th July.

Interest on Non-Deduction of TDS

Interest on Non-Deduction of TDS

When a person while making payment for which he ought to have deducted TDS fails in deducting TDS or deducts an amount less than the required amount. In all such cases, the deductor is liable to pay an interest @ 1% per month or part of the month, till the date on which TDS is deducted. Hence, a businessperson must be prudent while making payment to parties and ensure that TDS is deducted.

Other Consequences of Default on TDS

Other Consequences of Default on TDS

The expenses on which TDS was required to be deducted shall be disallowed as an expense under section 40(a) while computing the total taxable income. To understand it quickly let's take an example of business where the income is 10 lac and the expense is also 10 lac, then effectively there shall be zero income tax, However, if the TDS is not deducted then the tax shall be three lacs (30% of 10 lac)

TDS Rate Chart for The FY-2019-2020 (AY: 2020-21)

Section Nature of Payment Basic Cut-off (Rs.) Per Annum Individual and HUF Other Than Individual/HUF PAN is not Submitted
192 Payment of Salaries by Employers Slab rate Slab rate Not applicable 30%
192A Premature payment by PF Organization from EPF A/c (i.e. before 5 Years). 50,000 10% Not applicable 20%
193 Payment of Interest on Securities by company 10,000 10% 10% 20%
194 Payment of Dividend other than dividend as referred to Section 115O by company (i.e. Dividend on which Dividend Distribution Tax is not paid) 2,500 10% 10% 20%
194A Payment of Interest by bank 40,000 (Non Sr.Citizen) 50,000 (Sr. Citizen) 10% 10% 20%
194A Payment of Interest by others 5,000 10% 10% 20%
194B Payment of prize from Wining from Lotteries by any person. 10,000 30% 30% 30%
194B Payment of prize from Wining from Horse Race by any person. 10,000.00 30% 30% 30%
194C Payment to Contractors by any person. 30,000 (Single bill) or 1 Lakh aggregate bills during the year. 1% 2% 20%
194C Payment to Transporter Covered u/s. 44E and submit declaration in prescribed format. (i.e. owning less than 10 goods carriages) - 0 0 20%
194C Payment to Transporter not covered u/s. 44E (i.e. owning more than 10 goods carriages) 30,000 (Single bill ) or 75,000.00 aggregate bills during the year. 1% 2% 20%
194D Payment of Insurance Commission to agents by Insurance Company. 15,000 5% 10% 20%
194DA Payment in respect of maturity of Life Insurance Policy by Life Insurance Company. 1 Lakh 1% 1% 20%
194DE Payment to NRI sportsman or association by any person or organization - 20% 20% 20%
194EE Payment out of deposit under National Saving Scheme (NSS) 2,500 10% 10% 20%
194F Payment with respect to repurchase of units by Mutual Fund Companies. - 20% 20% 20%
194G Payment of Lottery Commission 15,000 5% 5% 20%
194H Payment of commission or Brokerage 15,000 5% 5% 20%
194I Payment of rent on land, building, furniture and fittings. 240,000 10% 10% 20%
194I Payment of rent on plant, machinery or equipments. 240,000 2% 2% 20%
194IB Payment made on account of transfer of immovable property other than agriculture land. 50 Lakh 1% 1% 20%
194IA Rent payable by individual not covered u/s. 194I for land, building, furniture and fittings 50,000 PM 5% 5% 20%
194J Payment of Professional Fees other than call centers 30,000 10% 10% 20%
194J Payment of Professional Fees to call centers. 30,000 2% 2% 20%
194LA Compensation on transfer of certain immoveable property than Agriculture Land 250,000 10% 10% 20%
Section Nature of Payment TCS Rate (%)
206C Scrap 1
206C Tendu Leaves 5
206C Timber obtained under a forest lease or other mode 2.5
206C Any other forest produce not being a timber or tendu leave 2.5
206C Alcoholic Liquor for human consumption 1
206C Parking Lot, Toll Plaza, Mining and Quarrying 2
206C Minerals, being coal or lignite or iron ore (applicable from July 1, 2012) 1
206C

Sale of motor vehicle of the value exceeding Rs. 10 Lacs (wef 01.06.2016)

Motor vehicle clause not applicable on Central Government, a State Government, an embassy, a High Commission, Legation, Commission, Consulate and the Trade Representation of a foreign State; Local Authority; a Public Sector Company which is engaged in the business of carrying passengers (wef 01.04.2017)

1

Note TDS deducted in a month is required to be paid before 7th day of next month. While making TDS mention correct section in the challan number 281. For TDS payment use separate challan while making payment for specific type (section). Interest on Late Payment is- 1.5% per month or part thereof, The penalty on Late filing of TDS Return is Rs. 200 per day, however it is limited to the TDS amount.

Due Date of Payment of TDS & FIling of TDS Return

SL. NO. PARTICULAR DUE DATE TYPE OF EVENT
1 Payment of TDS deducted under various sections of the income tax act Before 7th day of Next Month Monthly
2 1st Quarter TDS Return ( 1st April to 30th June) 31st July Quarterly
3 2nd Quarter TDS Return ( 1st July to 30th September) 31st October Quarterly
4 3rd Quarter TDS Return ( 1th October to 31st December) 31st January Quarterly
5 4th Quarter TDS Return ( 1st January to 31st March) 31st May Quarterly

Note TDS deducted in a month is required to be paid before 7th day of next month. While making TDS mention correct section in the challan number 281. For TDS payment use separate challan while making payment for specific type (section). Interest on Late Payment is- 1.5% per month or part thereof, The penalty on Late filing of TDS Return is Rs. 200 per day, however it is limited to the TDS amount.

Video on Tax Deducted at Source (TDS)

TDS
Tax Deducted at Source

Trusted by Leading Companies

Lotte Korea
LEI
PEC
Zopper
Windlass
Trux
Testbook
Premiershield
Porter
Pepperfry
New Prince Management
MAC Hotels Limited
Indian Post Payment Bank
IBL
GPX India
Innovaccer
Docquity
Carwale

Google Review of Setindiabiz, We are Lovin It

Shashi Kumar , March 07, 2020

Excellent service, Very cooperative, Especially Harish sharma's way of talking and understanding your query is extremely nice. Thank you setindiabiz team...See at Google

Arnab Chatterjee , March 05, 2020

Excellent service, prompt response. Very professional approach to the entire process. Special thanks to Neha who made it very easy for me....See at Google

Mallappa Desai , March 4, 2020

SETINDIABIG good services with in a short period of time, employees excellently coordinate with a clients Tq SARANYA and team for supporting me, nice job keep it up guys...See at Google

Pinky Singh , Feb 19, 2020

Registration took just one day to complete. Speed of execution is key to start new business and Setindia understands the needs of customers. Keep up the good work Rahul and Kuldeep...See at Google

Ram Singh , Feb 11, 2020

They are truly committed to their statements .Their work is also very quick and on time and they even treat their customers in a very polite manner everytime...See at Google

Nabendu Chakraborty , Feb 21, 2020

The executive person were incredible helpful and understanding of my views of situation and did everything they could to get me the Incorporation Certificate of our Company...See at Google

Nagendra Mallannagari , Feb 23, 2020

I am very satisfied with the work. which Sana Parveen had done. really appreciate for the fast process and. access. thanks to setindiabiz and Sana Parveen...See at Google

Aryant Nagaraju , Feb 23, 2020

Awesome great service! We are unexpected. my company get easy all legal documents through SetIndiabiz. They are provided best service. Thank you SETINDIABIZ...See at Google

Marvel Punisher , Feb 24, 2020

I have done my company registration at SETINDIABIZ along with TM and taken consultancy services for FDI . Services and guidance was given as per law and our work had done so smoothly that we never expected...See at Google

Rocky Roy , Feb 25, 2020

I am very impressed with work delivery system of Setindiabiz & team. They're very much competent to guide any start Up in statutory compliance in CA,CS & legal and to grow their business...See at Google

Indu Sinha , Feb 25, 2020

Good company, good people gives compliance related services in very professional way and delight customer by their services. i very much recommend for legal compliance...See at Google

Ashu Pareta , Feb 26, 2020

Highly supporting system for new business.. thankyou SETINDIABIZ for providing every type of business related support to new in field like me...See at Google

Avinash Pareta , Feb 26, 2020

Thank to all team members of SETINDIABIZ ..Your customer support is really like Backbone... Special thanks to "Mr. Praveen Singh" who is proactive and always approachable whenever required. Thanks to all...See at Google

Nitin Nayal , Jan 13, 2020

Big thanks to Kuldeep, Shaily and folks at SetIndiaBiz for registering my company within 7 days. Everything was handled professionally, and I was always made aware via mail and phone of progress, even for smaller things... See at Google

Satish Prajapati , Jan 10, 2020

I appreciate your service and will surely recommend to my friends who are looking for registering their company . It was a excellent job done by you. All the best you are doing a great job... See at Google

NishanthKumarTheGreat , Jan 01, 2020

Thanks For Helping In Registration of Company And Registration of GST. They Come Quickly Than Estimated Time. See at Google

Sunil Prajapati , Jan 01, 2020

My notions were feeble to pay for online services before "SETINDIABIZ" experiences. However they utterly pay-off my each penny by their swift and authentic services. See at Google

Dominic Salt , Jan 01, 2020

Thank you SETINDIABIZ for all your help in registering my private limited company in Bangalore, very smooth and they made it very easy for me. Thanks to Anitha from the BANGALORE... See at Google

TSR REDDY , Dec 24, 2019

Very Good Service, Quick Qquality Work, Time completed, Low Cost Work, We be Happy. TSR ENGINEERING PVT LTD /Director. See at Google

Pooja Ghose , Aug. 25, 2019

Interacted with Mr. Manav Gandhi for filing my gst returns. He was very courteous, polite and quick-to-action. Thank you for your service!...See at Google

Travelbid 2018 , Aug. 25, 2019

perfection, sincerity, on timing means SETINDIABIZ. contacted several companies for my work online and offline but couldn't get anyone to...See at Google

Manoj Mukundan , Sept. 18, 2019

Excellent services offered for Start Up Firms and also for existing companies. Hope SetIndiaBiz opens up more offices in Tier II cities and render their services.See at Google

Sreeroop KT , Sept. 18, 2019

Excellent support from Manav Gandhi at SETINDIABIZ. He ensured to stay back in office till late night and complete our work at the earliest and provided a good support...See at Google

Faiz Ahmad , Sept. 20, 2019

Good work done by Mr manav gandhi ,he is more concerned about my work to be completed on time,loved his working.See at Google

Kiran S , Sept. 22, 2019

I always had a great experience with SetIndiaBiz. It is since 2 years that I am getting all my trademarks done through them...See at Google

Vishal Deshmukh , Dec 18, 2019

Best legal service provider and flexibility in time commitment.All executives from sales to operations team: neha & Swati are really good in customer service.See at Google

Jaishree Kashyap , Dec 19, 2019

Great Experience. Thanks SETINDIABIZ and Mr. Manav for the proactive Customer care Services.See at Google

Sarkar M.Z , Dec 07, 2019

I would like to mention that Set India Biz is one of the best professional company I have worked with. All team members are customer focused and helped us to incorporate...See at Google

Pravesh Verma , Nov 15, 2019

I believe with the relationship with SETINDIABIZ is worth value for money. Our account was managed by Proshanto and he has very proactive to support us in all phases of... See at Google

Syed Naseruddin , Dec 06, 2019

Overall it is good Experience. Representatives are very active. They will walk you through each and every process. They will help you with the documentation. I ...See at Google

Punya Gautam , Dec 05, 2019

Great service with understanding of budget and requirement of customer. A trustful firm for people who has basic knowledge of legal rules. Friendly team and super... See at Google

Rahul Gangurde , Dec 11, 2019

I highly appreciate the managers and co-workers as they are highly committed to their work. All the reports, forms and correspondence are completed on time with no errors. See at Google

Srinivasa Rao Valiveti , Nov 26, 2019

I had very good experience of setting up my company. The team at SetIndiabiz are professional & understands need and executes at pace needed. I really appreciate & recommend. See at Google

Amlan Dutta , Nov 10, 2019

Setindiabiz is a Great Company for registration of PVT. LTD. , LLP or any other company. Their process is fast but due to Durga puja holiday my company is incorporated little bit late. See at Google

Kingsmen Security , Nov 26, 2019

We got our documentation done by SetindiaBiz and we are really happy to have found the right consultancy. Really helpful, patient and friendly staff. highly recommended. See at Google

Sunil Ob , Oct 19, 2019

Perfection and quality makes SETINDIABIZ differ from other companies. Promptness is an additional quality of them. Hats-off guys. Good Job done. thanks and will recommend you people...See at Google

Manga Lucas , Nov 17, 2019

I'm happy with the phone and the deal i got from the company. Speaking with the service team helped me get exactly what i was looking for. Especially Mr. Shubendu &... See at Google

Ashok Satapathy , Nov 17, 2019

Dedicated. supportive and understanding team.. What else we need to get the jobs done? Thanks to Set India Biz for helping me...See at Google

Abdul. Constructions , Dec 15, 2019

Have a great pleasure, and experience with team 'SETINDIABIZ' knowledgeable and supporting staff. As per our requirement, They committed and completed the said...See at Google

Rahul Raj , Nov 12, 2019

It's amazing. It was easy to understand and work was completed smoothly. Liked there work and recommend everyone to give them a chance. The best thing for setindiabiz is...See at Google

Rahul Goyal , 19 Oct, 2019

Very Nice and great company, all the executives are so polite and professional, they know their work very well and they are master in them. This company manages me and my companies...See at Google

Mohamed Salman Shariff , 19 Nov, 2019

Reliable with service satisfaction, employees are very helping & cooperative. Am grateful & thank you to the entire team of SetIndiabiz was...See at Google

Abhishek Balchuguri , 19 Nov, 2019

I have had a very good experience with them in incorporating my LLP. Sana Parveen from Delhi office has been very helpful and very much approachable, she ...See at Google

Aakanksha Shirbhate , 19 Nov, 2019
    <

The complete team is amazing, a very co-operative and helpful. They will answer all your questions calmly even if you ask same thing million of times. Special thanks to Rahul and....See at Google

Manjunath S , 19 Nov, 2019

I should write here .. I'm really impressed about Ms. PUJA.. You're an asset to your company Setindiabiz... I'm writing most about the person than the company because she...See at Google

ANIL YADAV , 19 Sep, 2019

GOOD COMPANY FOR DEALING WITH STARTUPS ESPECIALLY FOR DOCUMENTATION AND REGISTRATION. ON TIME ACTION AND POSITIVE RESULTS. ...See at Google

Mdz , 19 Nov, 2019

Great people, culture, All of the team, including the managers are approachable, helpful, caring and hard working.....keep up the good work....!! and yes Thanks...See at Google

Pravesh Verma , 19 Nov, 2019

I would like to mention that Set India Biz is one of the best professional company I have worked with. All team members are customer focused and helped us to incorporate the...See at Google

Divya Kholakiya , 19 Nov, 2019

Rhanks To Sana For Being An Best Supportive Cordinator All The Time. On Start Had face a Lot of Issues because of mumbai Office but then Got in Contact with Sana and She...See at Google

Radhakrishnan Velayudhan , 19 Nov, 2019

Excellent service. Mainly, its the timely update needed which is supplied on regular intervals. Ms. Khushboo & Ms. Swati were very cooperative in this regard. Shouldn't...See at Google

Mukund Tripathi , 30 Sep, 2019

The support given to me by corporate lawyer Mr. Kishore is really commendable. He was very cooperative in her approach towards our requirement and found out ways to move...See at Google

Sri Nithya Saswathananda , 20 Sep, 2019

I had a good experience with SetIndiaBiz for TM registration. Mr. Shubham who was dealing my case was very professional and clear about what is to be done and when. ...See at Google

SANDEEP KUMAR , 20 Sep, 2019

REALLY FAST AND PROMPT SERVICE.VERY GOOD EXPERIENCE OF SETTING UP ALL THE REQUIREMENTS WITHOUT ANY HINDERANCE. .THANKS TO THE TEAM ESPECIALLY MR. PUNDREEK PANDEY AND ...See at Google

Amit Kumar , 20 Sep, 2019

I hardly trust people in business society. However, the people in this company are exception. You can trust them blindly. They are unbelievably good at their job. ...See at Google

See More Google Review of Our Braches

Shalimar Bagh, DelhiShalimar Bagh, Delhi Hauz Khas, DelhiHauz Khas, Delhi MumbaiMumbai BangaloreBangalore HyderabadHyderabad