What is TDS ?
Tax Deducted at Source (TDS) is a system introduced by Income Tax Department, where person responsible for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment.
Can the payee request the payer not to deduct tax at source and to pay the amount without deduction of tax at source?
Form No. 15G is for the individual or a person (other than company or firm) and Form No. 15H is for the senior citizens.
What are the duties of Payer?
Following are the basic duties of the person who is liable to deduct tax at source.
- He shall obtain Tax Deduction Account Number and quote the same in all the documents pertaining to TDS.
- He shall deduct the tax at source at the applicable rate.
- He shall pay the tax deducted by him at source to the credit of the Government (by the due date specified in this regard*).
- He shall file the periodic TDS statements, i.e., TDS return (by the due date specified in this regard*).
- He shall issue the TDS certificate to the payee in respect of tax deducted by him
Is there any need to deduct TDS on sale of property?
As per section 194-IA deduction of tax at source in case of payment of sale consideration of immovable property (other than rural agricultural land) to a resident. Section 194-IA is not applicable if the seller is a non-resident. Tax is to be deducted @ 1%. No tax is to be deducted if the consideration is below Rs. 50,00,000. If the sale consideration exceeds Rs. 50,00,000, then tax is to be deducted on the entire amount and not only on the amount exceeding Rs. 50,00,000. If the seller is a non-resident then tax is be deducted under section 195 and not under section 194-IA. Thus, in case of purchase of property from non-resident TDS provisions of section 195 will apply and not of section 194-IA
What is form 16/16A?
It is the certificate of deduction of tax at source by any person, Form 16 is issued on deduction of tax by the employer on behalf of the employee under section 192 of IT Act, 1961. Form 16A is issued if the deduction of tax is under any other provision. These certificates provide details of TDS / TCS for various transactions between deductor and deductee. It is mandatory to issue these certificates to Tax Payers u/s 203 of IT Act, 1961.
What is the due dates for issuing these forns?
Form 16- Annual By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted Form 16A Quarterly Within fifteen days from the due date for furnishing the statement of tax deducted at source under rule 31A
What are the due dates of filing TDS Return?
|Quarter||Quarter Period||Last Date of Filing|
|1st Quarter||1st April to 30th June||31st July, 2017|
|2nd Quarter||1st July to 30th September||31st Oct, 2017|
|3rd Quarter||1st October to 31st December||31st Jan, 2018|
|4th Quarter||1st January to 31st March||31st May, 2018|