×
- Start Business
- For Indian Owners
- Other Entity Types
- For Foreigners (FDI)
- Licenses
- Mandatory Registration
- Need Based Registrations & Licenses
- Other
- Tax
- IPR
- Trademark Services
- Copyright & Design
- Patent Services
- Company ROC Filing
- Basic Compliances
- Company Changes
- Annual Filing
- LLP Filing
- General LLP Compliance
- Changes in LLP
- LLP Annual compliance / Closure
- Blog
- Payment
- Support
- Contact Us
List
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.
Request Call Back
Chat With Us
4.8
Over 1000+ Customer Review
Timely
Delivery
No Hidden
Charges
Tax Deducted at Source (TDS)
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
Key Points of TDS Deduction & Payment
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 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
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
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
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
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)
Trusted by Leading Companies
Review of Setindiabiz
I am new at incorporation field but SETINDIABIZ help me out & I would like to mention especially for Ms Sana Parveen guided me all through the...See at Google
,
October 17, 2020
I was doubtful in the beginning to contact them for my work but they proved to be very professional and fast. I contacted SetIndiaBiz for...See at Google
,
October 10, 2020
Wonderful experience and a very professional bunch of people. To name some I have been recently dealing with Shaily Dhoudiyal, Suman Khowal...See at Google
,
September 31, 2020
Wonderful experience. Setindiabiz is very professional and efficient. Its executives are very friendly and helpful. Preeti who was handling...See at Google
,
October 15, 2020
Professionalism at its best. Every employee in this company is so energetic and punctual. you can rely on this company for sure...See at Google
,
October 07, 2020
Super fast service, They helped me in formation of my new company "Storaway Warehousing And Logistics Private Limited"...See at Google
,
October 07, 2020
The staff is really praiseworthy. I would like to mention specially for Ms Shaily Dhoundiyal guided me all through the process. she...See at Google
,
October 11, 2020
A good and professional company. I came to know about this company from Google. When I go through company profile and big company. My serviceSee at Google
,
September 25, 2020
Enthical company with finest of Staff , Specially Shailey Dhoundiyal. She helped a lot through out the process of registration ans incorporationSee at Google
,
September 19, 2020
Extremely Satisfied with the service. I came through this company in Google search. Initially I was hesitant about how would be the service... See at Google
,
September 25, 2020
Setbiz India made us very easy to deal with all documentation. Staff Shaily guided all through the process. Over all a Good team. Keep it up... See at Google
,
October 07, 2020
Sana parveen has been really efficient an quick in the process for KYC filing. Tremendous job.keep up the good work. All the best... See at Google
,
October 07, 2020
Setindiabiz truly committed to their statements .Their work is also very quick and on time and they even treat their customers in.... See at Google
,
October 11, 2020
All the work of my company has been done by Satindiabiz employees for the last 3 years. I am satisfied with their work. I thank to Shaily.... See at Google
,
October 13, 2020
My first experience today and it was really a wonderful experience. Quick updates and follow ups considering the criticality of the.... See at Google
,
October 03, 2020
I'm very happy with the services provided ms Nishtha walked me through some of the processing very patiently and kept regular updates. Thank you... See at Google
,
October 12, 2020
Shaily is prompt and cooperative, i had a smooth experience in filing my annual returns and also during LLP establishment. I thank her and wish good luck :-)... See at Google
,
October 04, 2020
All the work of my company has been done by Satindiabiz employees for the last 3 years. I am satisfied with their work. I thank to Shaily medm for the submission of my DIN KYC file... See at Google
,
October 04, 2020
They provide the best service for business registeration.Thank you so much Shaily for providing such a great and efficient assistance for my... See at Google
,
October 13, 2020
I had a very pleasant experience with SetIndiaBiz. Thanks to shaily and shubhlam who guided me step by step through the process... See at Google
,
October 8, 2020
Shaily and Khusboo have been great professionals, showing an amazin intent of delivering customer satisfaction.. I highly recommend SETINDIABIZ!.... See at Google
,
September 19, 2020
This company have a great service and my cs Sana Praveen mam is so good and very responsive person . Thank you setindiabiz and thank u Sona mam... See at Google
,
September 17, 2020
They give fast response to the customers and respect them and helps the customer in all the way in budget friendly manner... See at Google
,
September 18, 2020
They give fast response to the customers and respect them and helps the customer in all the way in budget friendly manner... See at Google
,
September 18, 2020
Good people but worst services. If you are startup please avoid them. There is lot of miscommunication and no proper information. They wont... See at Google
,
August 19, 2020
Excellent service, Very cooperative, Especially Harish sharma's way of talking and understanding your query is extremely nice. Thank you...See at Google
,
March 07, 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
,
March 05, 2020
SETINDIABIG good services with in a short period of time, employees excellently coordinate with a clients Tq SARANYA and team for supporting...See at Google
,
March 4, 2020
Registration took just one day to complete. Speed of execution is key to start new business and Setindia understands the needs of...See at Google
,
Feb 19, 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...See at Google
,
Feb 11, 2020
The executive person were incredible helpful and understanding of my views of situation and did everything they could to get me the Incorporation...See at Google
,
Feb 21, 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...See at Google
,
Feb 23, 2020
Awesome great service! We are unexpected. my company get easy all legal documents through SetIndiabiz. They are provided best...See at Google
,
Feb 23, 2020
I have done my company registration at SETINDIABIZ along with TM and taken consultancy services for FDI . Services and guidance was...See at Google
, Feb 24, 2020
I am very impressed with work delivery system of Setindiabiz & team. They're very much competent to guide any start Up in statutory...See at Google
,
Feb 25, 2020
Good company, good people gives compliance related services in very professional way and delight customer by their services. i very much...See at Google
,
Feb 25, 2020
Highly supporting system for new business.. thankyou SETINDIABIZ for providing every type of business related support to new in field...See at Google
,
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...See at Google
,
Feb 26, 2020
Big thanks to Kuldeep, Shaily and folks at SetIndiaBiz for registering my company within 7 days. Everything was handled professionally... See at Google
,
Jan 13, 2020
I appreciate your service and will surely recommend to my friends who are looking for registering their company . It was a excellent job... See at Google
,
Jan 10, 2020
Thanks For Helping In Registration of Company And Registration of GST. They Come Quickly Than Estimated Time. ................... See at Google
,
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... See at Google
,
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. ... See at Google
,
Jan 01, 2020
Very Good Service, Quick Qquality Work, Time completed, Low Cost Work, We be Happy. TSR ENGINEERING PVT LTD /Director........... See at Google
,
Dec 24, 2019
Interacted with Mr. Manav Gandhi for filing my gst returns. He was very courteous, polite and quick-to-action. Thank you for your...See at Google
,
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
,
Aug. 25, 2019
Excellent services offered for Start Up Firms and also for existing companies. Hope SetIndiaBiz opens up more offices in Tier II cities and...See at Google
,
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...See at Google
,
Sept. 18, 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
,
Sept. 20, 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
, Sept. 22, 2019
Best legal service provider and flexibility in time commitment.All executives from sales to operations team: neha & Swati are really good in...See at Google
,
Dec 18, 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...See at Google
,
Dec 07, 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... See at Google
,
Nov 15, 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...See at Google
,
Dec 06, 2019
Great service with understanding of budget and requirement of customer. A trustful firm for people who has basic knowledge of legal rules. ... See at Google
,
Dec 05, 2019
I highly appreciate the managers and co-workers as they are highly committed to their work. All the reports, forms and correspondence are... See at Google
,
Dec 11, 2019
I had very good experience of setting up my company. The team at SetIndiabiz are professional & understands need and executes at pace needed. ... See at Google
, Nov 26, 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... See at Google
, Nov 10, 2019
We got our documentation done by SetindiaBiz and we are really happy to have found the right consultancy. Really helpful, patient and ... See at Google
, Nov 26, 2019
Perfection and quality makes SETINDIABIZ differ from other companies. Promptness is an additional quality of them. Hats-off guys. Good job...See at Google
,
Oct 19, 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... See at Google
,
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
,
Nov 17, 2019
Have a great pleasure, and experience with team 'SETINDIABIZ' knowledgeable and supporting staff. As per our requirement, They committed and...See at Google
,
Dec 15, 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...See at Google
,
Nov 12, 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. ......See at Google
,
19 Oct, 2019
Reliable with service satisfaction, employees are very helping & cooperative. Am grateful & thank you to the entire team of SetIndiabiz was......See at Google
,
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.......See at Google
,
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. ...See at Google
,
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...See at Google
,
19 Nov, 2019
Good company for dealing with startups especially for documentation and registration. On the time action and positive results. ........See at Google
,
19 Sep, 2019
Great people, culture, All of the team, including the managers are approachable, helpful, caring and hard working.....keep up the good work....!! ...See at Google
,
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...See at Google
,
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...See at Google
,
19 Nov, 2019
Excellent service. Mainly, its the timely update needed which is supplied on regular intervals. Ms. Khushboo & Ms. Swati were very cooperative...See at Google
,
19 Nov, 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...See at Google
,
30 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 ...See at Google
,
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. ...See at Google
,
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 ...See at Google
,
20 Sep, 2019
