TDS Rate Chart Financial Year 2021-22 or Assessment Year 2022-23
The Article contains TDS Rate Chart Financial Year 2021-22 or Assessment Year 2022-23. TDS provisions Income Tax, Income tax Provision for TDS, RATE OF TAX DEDUCTION AT SOURCE (TDS), TIME OF DEPOSIT TDS, TDS Payment, TDS Return forms, DUE DATE OF SUBMISSION OF TDS RETURN, MODE OF FURNISHING RETURNS OF TDS, Certificate of TDS, Time limit for issuing TDS certificate, CONSEQUENCE ON DEFAULT IN TDS PROVISIONS are discussed here.
|Section||Nature of Income||Rate of TDS applicable for the period||Threshold Limit for deduction tax|
|192||Salaries||As per Slab [Please note that no Change in Slab Rates have been introduced for FY 2021-22]||As per Slab [Please note that no Change in Slab Rates have been introduced for FY 2021-22]|
|192A||Payment of accumulated balance of provident fund which is taxable in the hands of an employee||10% in case of Resident and 10.40% in case of Non-Resident.||50000|
|193||Interest on Securities||10%||0|
|194||Dividend||10%||Rs. 5,000 in case of Individual|
|194A||Interest other than interest on Securities||10%||Rs. 40,000 – Bank Deposit/ Post Office Deposit/ Banking Co-Society Deposit
Rs. 50,000 – Senior Citizen
Rs. 5,000 – Securites Other than Above
|194B||Income by way of winnings from lotteries, crossword puzzles,card games and other games of any sort||30% in case of Resident Indians and Domestic Companies||Rs. 10,000|
|31.2% in case of Non Resident and Foriegn Companies|
|194BB||Income by way of winnings from horse races||30% in case of Resident Indians and Domestic Companies||Rs. 10,000|
|31.2% in case of Non Resident and Foriegn Companies|
|194C||Payment to Contractors||1%: If deductee is an Indian individual or HUF||Single payment : Rs. 30,000|
|2%: In any other case of Indian Resident||Aggregate payment: Rs. 100,000|
|194D||Insurance Commission||10%: If deductee is domestic Company||15,000|
|5%: In any other case|
|194E||Payment to non-resident sportsmen/ sports association||20% + Cess + Surcharge (If Applicable)|
|194EE||Payment in respect of deposit under National Savings scheme||Resident Indians & Domestic Companies – 10%||Rs. 2500|
|Non Resident – 10% + Cess + Surcharge (If Applicable)|
|194EE||Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India||Resident Indians & Domestic Companies – 20%|
|Non Resident – 20% + Cess + Surcharge (If Applicable)|
|194G||Commission and other payments on sale of lottery tickets||5%||15,000|
|194H||Commission and Brokerage||5%||15,000|
|194-I||Rent||10%: If rent pertains to hiring of immovable property||2,40,000|
|2%: If rent pertains to hiring of plant and machinery|
|194-IA||Payment on transfer of certain immovable property other than agricultural land||1%||50,00,000|
|194-IB||Payment of Rent by Individuals or HUF not liable for Tax Audit||5%||50,000|
|194J||Royalty and Fees for Professional or Technical Services||2%: If royalty is payable towards sale, distribution or exhibition of cinematographic films||Director’s fees: Nil|
|2%: If recipient is engaged in business of operation of call Centre||Others: Rs. 30,000|
|2%: If sum is payable towards fees for technical services (other than professional services)|
|10%: In all other cases|
|194LA||Payment of compensation on Compulsory acquisition of immovable property||10% in case of Resident Individuals and Domestic Companies||2,50,000|
|194LB||Payment of interest on infrastructure debt fund||5.20% in case of Non-resident Indians and foreign company|
|194LBA(1)||Distribution of, any interest received or receivable from SPV or any income received from renting or leasing or letting out any real estate asset owned directly by Business trust||10% in case of Resident Individuals and Domestic Companies|
|194LBA(2)||Distribution of, any interest received or receivable from SPV by Business trust||5.20% in case of Non-resident Indians and foreign company|
|194LBA(3)||Distribution of, any income received from renting or leasing or letting out any real estate asset owned directly by Business trust||31.20% in case of Non-resident Indians and 41.60% for foreign company|
|194LBB||Investment fund paying an income to a unit holder||10% in case of Resident Individuals and Domestic Companies|
|31.20% in case of Non-resident Indians|
|41.60% in case of foreign company|
|194LBB||Investment fund paying an income to a unit holder||25% in case of Resident Individuals|
|31.20% in case of Non-resident Indians|
|10% in case of Domestic Companies|
|41.60% in case of foreign company|
|194M||Payment to contractor, commission agent, broker or professional by certain Individuals or HUF||5%||5000000|
|194N||Cash withdrawal||2%: In general if cash withdrawn exceeds Rs. 1 crore||If a person defaults in filing of return: 20 lakhs|
|2%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore||If no default is made in filing of return: Rs 1 crore|
|5%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 1 crore|
|194O||E-Commerce Operator For Sale of Goods & Services||1% in case of Resident Indians and Domestic Companies||5,00,000|
|194Q||TDS on Purchase of Goods||0.10%||The Threshold Limit is Rs. 50,00,000 applicable when total sales or gross receipts or turnover from the business carried on exceeds Rs. 10 Crores during the financial year immediately preceding the financial year inwhich the purchase of goods is carried out.|
|206AB||TDS on non-filers of ITR||Higher of 5% or twice the rate specified in the relevant provision of the Act; or twice the rate or rates in force||This section shall not apply where the tax is required to be deducted under sections 192, 192A, 194B,194BB, 194LBC or 194N of the Act.|
TDS Rate if PAN is not provided
If recipient not furnish his/its PAN Tax shall be deducted at the normal rate or at the rate of 20% , whichever is higher.
CERTIFICATE FOR LOWER DEDUCTION OF TDS OR NO DEDUCTION OF TDS
- On application made to Assessing officer, if he satisfied that the total income of recipient justifies the deduction of income tax at any lower rates or no deduction of income tax, the AO shall give him such certificate under section 197.
- The person responsible for paying the income shall deduct income tax at the rates specified in such certificate or deduct no tax as the case may be, mentioned in certificate issued under section 197.
- The person responsible for TDS, shall submit one copy before the Chief commissioner or commissioner of TDS.
EXEMPTION FROM TDS DEDUCTION
- Section 197A
- Amount of any income does not exceed the maximum amount which is not chargeable to tax
- An individual, resident in India has furnished Form 15G in duplicate to the deductor
- An individual, resident in India ( Senior Citizen) has furnished form 15H in duplicate to the deductor
- By Offshore Banking Unit from the interest paid to nonresident or a person not ordinarily resident in India
- From any payment to any person for or on behalf of the New pension system[10(44)]
- From such specified payment to such institution, association or body or class of institutions as may be notified by the Central Government whose income is unconditionally exempt under section 10 and who are not statutorily required to file return under section 139.
- Local Authority, SAARC fund, IRDA, Prime minister’s National relief fund, Recognised provident fund, ESIC fund etc,
TIME OF DEPOSIT TDS
|Taxpayer||Date of Deposit|
|Is office of the Govt. and tax is paid without production of income tax challan.||On the same day on which tax is deducted|
|Is office of the Govt. and tax is paid with production of income tax challan.||On or before 7 days from the end of month in which tax is deducted|
|Tax is deducted by a person other than office of Government||On or before 7 days from the end of month in which tax is deductedIncome paid or credited in the month of March: Tax should be deposited by April 30.|
|Tax is deducted by a person other than office of Govt. and The AO has permitted quarterly deposit of tax deducted u/s 192, 194A, 194D and 194H||Tax Quarter ending:June 30: By July 7
September 30: By October 7
December 31: By January 7
March 31: By April 30.
|Tax is deducted by a person u/s 194-IA (Challan – 26QB)Tax is deducted u/s 194-IB (Challan- 26QC)||Within 30 days from the last date of month in which tax is deducted|
How to make TDS Payment?
- TDS should be deposit in Challan No. 281
- TDS will have to deposit through internet banking.
- Indicate accurate TAN in challan
- Minor Head of Challan – 200 : TDS payable by tax payer
- Minor Head of Challan – 400: TDS Regular assessment raised by Income Tax Department.
- Amount of TDS, Interest, Late filing fee, penalty etc, should be separately shown while filing the challan
- Note down BSR code, Challan serial number, Date of payment, and amount of challan. This will help you in case challan is misplaced.
TDS Return Forms
|Tax deduction from Salary under section 192||In form No. 24Q|
|Tax deduction when deductees are non-resident, foreign company, and persons who are resident but not ordinarily resident||In form No. 27Q|
|Tax deduction under section 194-IA||In form no. 26QB|
|Tax deduction under section 194-IB||In form no. 26QC|
|Tax deduction in any other case||In form no. 26QC|
Due Date of Submission of TDS Return
|Quarter ending||Due date of TDS Return|
How to Furnish Return of TDS
- In case where deductor is an office of Govt. or Principal officer of a company or is person who is required to get his account audited u/s 44AB in immediately preceding financial year or when the numbers of deductee are more than 20, then TDS quarterly return shall be submitted electronically.
- Other than above, any other deductor can submit TDS return either in paper format or electronically.
- Electronic return can be uploaded with Digital signature or verification of form 27A electronically
- Electronic return will be uploaded in FVU file
- FVU file can be generated through e TDS RPU (return prepare utility) which is available in
- In every quarter download latest e TDS RPU
- In e TDS return details of challan paid [ i.e. TDS amount, Interest, Fee, Other/penalty, BSR code, Challan serial No., Date of challan, Minor head] , details of deductee has to fill like section under which payment made, PAN, Name, Date of payment, Date deposit of TDS, amount paid, amount of TDS, Rate of TDS etc,.
Process of TDS return by the Income tax department through Traces
- After uploading of TDS return, IT department will process the return.
- Deductor has to registered in Traces site and create User ID and Password
- After uploading return, TDS return can be process without default. If TDS return is process with default, that means there is some error in return and there may be demand of short deduction, interest, late filing fee or penalty.
- To know details of process with defaults, justification report has to be downloading.
- If there is demand of short deduction or interest or late filing fee, then deductor has to deposit the demand under minor head 400 showing separately TDS, Interest, late fee or others penalty and add this challan to the respective quarterly statement.
- After Tag/add of challan, again TDS correction return has to be uploaded.
- When TDS return is process without default, that means TDS return process is completed. Thereafter TDS certificate has to download.
Certificate of TDS or TDS Certificate
|Form No. of Certificate||Type of Certificate||Time-limit for issue of certificate|
|16||From Salary||Annual, on or before 15 June|
|16B||U/S 194-IA||Within 15 days of furnishing challan 26QB|
|16C||U/S 194-IB||Within 15 days of furnishing challan 26QC|
|16A||Other than Salary||Within 15 days from the due date of furnishing quarterly TDS return|
Time limit for issuing Form 16A, TDS certificate in case of other than salary
|For the Quarter ending||Form No 16A|
Time limit for issuing Form 16, SALARY TDS CERTIFICATE
- In the TDS return of salary of quarter 4, data of annual salary paid and TDS deducted of employee’s have to fill.
- Form 16 is has into two parts:
- Part A of Form 16 contains information of employer and employee, assessment year, summary of TDS, challan details etc,
- Part B of Form 16 contains details of salary paid, other incomes, amount deducted under chapter VI- A etc,
CONSEQUANCE ON DEFAULT IN TDS
|Failure to deduct and pay tax deducted at source under section 192 to 196C [Sec 201(1A)]||Tax with interest shall be payable @ 1% from the date on which actually deductible and to the date on which actually deducted.|
|@ 1.5% from the date on which tax was actually deducted and to the date on which tax is actually paid.|
|Failure in furnish TDS return within stipulated time [U/S 234E]||Rs. 200 per day and shall not exceed the amount of tax deducted|
|Penalty for failure to furnish quarterly TDS return [271H]||Rs. 10000/- to Rs. 100000/-|
DISSALLOWANCE OF EXPENSES
U/S 40(a)(i):- 100% expenditure shall be not allowed to deduct from income chargeable under the “profits and gains from business or profession”, if any assessee fail to deduct tax at source or fail to deposit TDS deducted from interest, royalty, fee for technical services payable outside India, or in India to a non-resident, not being a company or a foreign company.
U/S 40(a)(ia):- 30% expenditure shall be not allowed to deduct from income chargeable under the “profits and gains from business or profession”, if any assessee fail to deduct tax at source or fail to deposit TDS deducted to a resident