Tally Prime

Tax Deducted at Source (TDS) in Tally Prime

By amitgupta

Posted on September 9, 2023

11 min read

· TDS – Tax deducted at source is one of the modes of collecting income-tax from the assessees. Such collecting of tax is affected at the source when a specified Payment or income arises or accrues.

TDS is applicable according to the provisions of the Income tax Act of 1961. The “Central Board for Direct Taxes (CBDT) is responsible for managing it. TDS is applicable on specified payment such as Salary, Commission, Brokerage, Royalty Payments, Interest earned on several financial Investments, Earning from lotteries, rent Income etc.

TAN (Tax Deduction and Collection Account Number) is needed to be obtained by those persons who are responsible for deducting and collecting TDS, It is 10 digit formats like

“DELA012457G”. In TAN Number formats first 3 Characters are City’s name of TDS Deductor and 4 characters is First letters of Name of Deductor.

Note: In TDS, Person who deduct/ Cut TDS of assessees is called ‘Deductor’ and Persons whom

TDS deducted by any Deductor is called ‘Deductee’.

· TDS is applicable on Specified payments and Rates which is given in following tables with its sections defined by Indian government:

TDS rates Charts Applicable from 14/05/2020 To 31/03/2021

Under Section

Payment code

Nature of Payments

Threshold limit

Rates for Residents

Rates for Non-

Residents

192

92A & 92B

Salaries

Normal

Slab rate

Normal Slab

rate

Normal

Slab rate

193

Interest on securities

10000

7.5%

10%

194

Dividends

5000

7.5%

10%

194B

94B

Winning from lotteries &

Crossword puzzles

10000

30%

194BB

4BB

Winning from Horse race

10000

30%

194C

94C

Contractor-Single transaction

30000

0.75%

(Individual/HUF)

1.5% (Others)

194C

94C

Contractor – Consolidated Payment During the F.Y.

100000

0.75%

(Individual/HUF)

1.5% (Others)

194D

94D

Insurance commission

15000

10% (Company)

3.75% (Others)

194H

94H

Commission/Brokerage

15000

3.5%

194J

94J

Professional Fees

30000

7.5%

TDS rates Charts Applicable from 14/05/2020 To 31/03/2021

Under Section

Payment code

Nature of Payments

Threshold limit

Rates for Residents

Rates for

Non- Residents

194J

94J

Technical Fee

30000

1.5%

194IB

4IB

Rent by Individual/HUF

50000/

month

3.5%

194I

94I

Rent

240000

1.5 % (Plant/Machinery

/Equipment)

194I

94I

Rent

240000

7.5 % (Land and Building/Furniture

& Fixture)

195

94J

Fees for technical

services

10%

· TDS Returns – A TDS Return is a summary of all the transactions related to TDS made during a quarter. TDS Return is a quarterly statement submitted by the Deductor to the Income Tax Department. The statement shows a summary of all the entries for TDS collected by the Deductor and the TDS paid by the Deductor to the Income Tax Authority.

The TDS Return statement includes details like the PAN number of the Deductor & the deductees, all the detailed particulars of the TDS paid to the government and the TDS Challan information.

· Types of TDS Returns which is filed by Deductor

Types of TDS Returns forms

Description about Returns Forms

Form 24Q

Statement for tax deducted at source from

salaries

Form 26Q

Statement for tax deducted at source on all

payments other than salaries.

Form 27Q

Statement for tax deducted at source on all

payments other than salaries for NRI.

· Form 26AS – Form 26AS is a statement that provides details of any amount deducted as TDS or TCS from various sources of income of a taxpayer. This tax deducted is then deposited with the government by the Deductor. It also reflects details of advance tax/self-assessment tax & high- value transactions entered into by the taxpayer.

· Form 15H/15G – Form 15G (Less than 60 Years) and Form 15H (more than equal to 60 Years) are self declaration forms that an individual submits to the bank requesting not to deduct TDS on interest income as their income is below the basic exemption limit. For this, providing PAN is compulsory. Some banks allow you to submit these forms online through the bank’s website.

· Dues Dates for TDS Payments & Return

Collection

Months

Quarter

Quarter Period

Due Dates for

Payment TDS

Due dates for

filing returns

April

1st Quarter

1st April to 30th June

Up to 7th April

Up to 31St July

May

Up to 7th May

June

Up to 7th June

July

2nd Quarter

1st July to 30th September

Up to 7th July

Up to 31St October

August

Up to 7th August

September

Up to 7th September

October

3rd Quarter

1st October to 31st December

Up to 7th October

Up to 31St January

November

Up to 7th November

December

Up to 7th December

January

4th Quarter

1st January to 31st March

Up to 7th January

Up to 31St May

February

Up to 7th February

March

Up to 7th March

Note: In case of PAN is not available of Deductee, Deductor deducts TDS @20% of Deductee.

· TDS Certificate – TDS certificates is a proof document of all about TDS deduction of assessees. This Certificate issued by a person deducting TDS to the Assessee from whose income TDS was deducted while making payment.

Types of TDS Certificate

Certificate type

Description of certificate For

Issue Frequency

Dues Dates

Form 16

TDS On The Payment Of Salary

Yearly

31st May

Form 16 A

TDS On Non-Salary Payments

Quarterly

15 Days From The Due

Date Of Return Filing

Form 16 B

TDS On Sale Of Property

Every

Transaction

15 Days (From Return

Filing Due Date)

Form 16 C

TDS On Rent

Every

Transaction

15 Days (From The Due

Date Of Returns Filing)

· New Income Tax Slab rates for Financial Year 2021-22

Income tax Slab Rates Charts for Individual & HUF below 60 Years

From (₹)

To (₹)

Tax Rates

2,50,000

2,50,001

5,00,000

5,00,001

7,50,000

10%

7,50,001

10,00,000

15%

10,00,001

12,50,000

20%

12,50,001

15,00,000

25%

15,00,000

Above

30%

Note 1: In case of Senior citizens (above 60 years up to 80 years) up to 3 lacs & Super senior citizen (Above 80 years) up to 5 lacs are exemption limit in income tax for tax calculation.

Note 2: Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases (Increased from 3% since FY 18-19). CESS is calculated on total amounts of Income tax plus surcharge.

· Surcharge: Surcharge is levied on the amount of income-tax at specified rates if total income of assessees exceeds specified limits. Charts for Individual/HUF/AOP/BOI/ Artificial Judicial Person.

Income tax Limit & Surcharge Rates charts For FY 2021-22

Income from (₹)

Income up to (₹)

Surcharge Rates

50,000,00

1,00,000,00

10%

1,00,000,01

2,00,000,00

15%

2,00,000,01

5,00,000,00