Consequences of Failure to Deduct or Pay TDS Introduction If any person fails to deduct TDS or deducts but does not deposit it with the Government, they are deemed an assessee-in-default and are subject to interest, penalties, prosecution, and disallowance of expenses. When Is a Deductor Deemed to Be in Default? Failure to deduct TDS.… Read More »

Tax Deduction and Collection Account Number (TAN) Introduction Every person responsible for deducting or collecting tax at source must obtain a Tax Deduction and Collection Account Number (TAN) within the prescribed time. Application Process Application for TAN must be made inForm 49B. It can be filed electronically or manually with the Income-tax Department. Time Limit… Read More »

Requirement to Furnish PAN for TDS Introduction Any person receiving income subject to tax deduction at source (TDS) must furnish his Permanent Account Number (PAN) to the deductor. Failure to provide PAN results in higher TDS rates. TDS Deduction Rates When PAN Is Not Furnished General Rule (Section 206AA): TDS is deducted at the highest… Read More »

TDS Certificate Introduction A person deducting tax at source (TDS) must issue a TDS certificate to the deductee, specifying the tax amount, rate, and other prescribed details. The certificate is generated from the TRACES portal after processing the TDS statement. Types of TDS Certificates Form 16– Issued by the employer for TDS on salary (Section… Read More »

Filing of TDS Return Introduction Any person responsible for deducting tax at source (TDS) must file a quarterly statement in the prescribed format by the due date. However, for TDS deducted under Sections 194-IA, 194-IB, 194M, and 194S (for specified persons), the statement is filed monthly. Forms for Filing TDS Returns Form 24Q– For salary income (Sections 192 and 194P). Form 26Q–… Read More »

Due Dates for Deposit of TDS Introduction Tax deducted at source (TDS) must be deposited with the Central Government within the prescribed due dates. Due Dates for Government Deductors Without Challan: Deposit tax on the same day it is deducted. With Challan (ITNS 281): Deposit tax by the 7th of the following month. Due Dates for Other Deductors For… Read More »

Duties of a Person Deducting Tax at Source (TDS) Introduction A person responsible for deducting tax at source must deposit the tax with the Central Government, file TDS statements, and issue TDS certificates to the deductee within the prescribed timelines. Deposit of TDS The deductor must deposit the TDS on or before the due date.… Read More »

Credit for Tax Deducted at Source (TDS) Introduction Credit for tax deducted at source (TDS) is available to the person from whose income the tax has been deducted. However, credit is allowed only if the deductor deposits the tax with the Central Government. Eligibility for TDS Credit General Rule TDS credit is granted to the… Read More »

Non-Deduction of Tax Introduction Tax is not required to be deducted on certain payments if either the payer is a specified institution or the recipient submits a self-declaration for nil TDS. Eligible recipients must file Form 15H (for senior citizens) or Form 15G (for others). Eligibility for Filing a Declaration: A declaration can be filed for the following provisions… Read More »

Certificate for Lower Deduction of Tax Introduction An assessee can apply to the Assessing Officer for a certificate permitting nil or lower tax deduction at source (TDS) if their estimated tax liability justifies a lower rate. Eligible Applicants Any person, including residents, non-residents, individuals, firms, and companies, can apply for this certificate. In some cases,… Read More »