TDS RATE CHART FY 2018-19 AY 2019-20 TDS DEPOSIT-RETURN DUE DATES-INTEREST-PENALTY

Tax Deducted at Source (TDS) is a system introduced by Income Tax Department, where person responsible for making specified payments such...

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. As the name suggests, the concept of TDS is to deduct tax at its source. 

A significant part of Income tax collection comes through TDS ,so Tax machinery is monitoring the TDS collection minutely.

In view of above ,Deduction of Tax at correct rate is very important for deductor and minor mistake in deduction leads to penalty in shape of Interest on late deposit and disallowance of Expenses. We have Compiled Tax deduction rates chart (TDS rate chart) for Financial year 2018-19 Assessment year 2019-20 which may be useful for all the readers.

Kindly give suggestion/queries/errors/amendments in comment section or raniraj1950 at gmail.com , suitable  prizes will be given to  persons who will point out error(s) or sent good suggestions about this post.Copy paste has been disabled .

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1.      TDS RATE CHART FY 2018-19 AY 2019-20

TDS RATE CHART FY 2018-19 AY 2019-20
Section	Nature of Payment	Cut off (Rs.)	Indi/HUF	Others
192	Salaries	-	Avg rates	NA
192A	Premature withdrawal from EPF	50000	10	NA
193	Interest on securities	10000	10
194	Dividends	2500	10
194A	Interest Banks/Other	10000/5000	10
	For Senior citizen(01.04.18)	50000
194B	Winning from Lotteries	10000	30
194BB	Winnings from Horse Race	10000	30
194C	Contractor-Single/Yearly	30K/1LAKh	1	2
194C	Transporter(44AE) Declaration with PAN	As above	-	-
194D	Insurance Comm(15G-15H allowed)	15000	5%
194DA	Life insurance policy	100000	1%
194EE	NSS	2500	10	NA
194G	Commission /Lottery	15000	5
194H	Commission / Brokerage	15000	5
194I	Rent Land  and  Building  F&F	180000	10
194IB	Rent (by Indvl/HUF)(01.06.17)	50000/Month	5%	NA
194I	Rent-Plant/Machinery/equipment	180000	2
194IA	Immovable property	50 Lakh	1
194J	Professional/technical Fees	30000	10
194J	Payment to Call Center(01.06.17)	30000	2
194LA	Immovable Property(compenation)	2.5 LAKH	10
194LA	Immovable Property-TDS exempted under RFCTLARR Act'(01.04.17)

TDS RATE CHART FY 2018-19 AY 2019-20
Sec	Nature of Payment	Cut off (Rs.)	Indi/HUF	Others
192	Salaries	-	Avg rates	NA
192A	Premature withdrawal from EPF	50000	10	NA
193	Interest on securities	10000	10
194	Dividends	2500	10
194A	Interest Banks/Other	10000/5000	10
	For Senior citizen(01.04.18)	50000
194B	Winning from Lotteries	10000	30
194BB	Winnings from Horse Race	10000	30
194C	Contractor-Single/Yearly	30K/1LAKh	1	2
	Transporter(44AE) Declaration with PAN	As above	-	-
194D	Insurance Comm (15G-15H allowed)	15000	5%
194DA	Life insurance policy	100000	1%
194EE	NSS	2500	10	NA
194G	Commission /Lottery	15000	5
194H	Commission / Brokerage	15000	5
194I	Rent Land  and  Building  F&F	180000	10
194IB	Rent (by Indvl/HUF)(01.06.17)	50000/Month	5%	NA
194I	Rent-Plant/Machinery/equipment	180000	2
194IA	Immovable property	50 Lakh	1
194J	Professional/technical Fees	30000	10
194J	Payment to Call Center(01.06.17)	30000	2
194LA	Immovable Property(compenation)	2.5 LAKH	10
194LA	Immovable Property-TDS exempted under RFCTLARR Act'(01.04.17)

TDS RATE CHART FY 2018-19 AY 2019-20
Nature of Payment Made To		Indivi/ HUF	Other
Section - Description	Cut off (Rs.)	Rate (%)
192 - Salaries	-	Avg rates	NA
192A-Premature withdrawal from EPF	50000	10	NA
193 - Interest on securities	10000	10
194 - Dividends	2500	10
194A - Interest Banks	10000	10
194A - Interest other	5000	10
194A-Interest Senior citizen(01.04.18)	50000	10
194B - Winning from Lotteries	10000	30
194BB - Winnings from Horse Race	10000	30
194C- Contractor - Single Transaction	30000	1	2
194C- Contractor-During the F.Y.	1 LAKH	1	2
194C- Transporter (44AE) declaration with PAN	-	-	-
194D - Insurance Commission(15G-15H allowed)	15000	5
194DA  Life insurance Policy	100000	1	NA
194E   -Non-Resident Sportsmen or Sports Association	-	20
194EE  -  NSS	2500	10	NA
194F - Repurchase Units by MFs	-	20
194G - Commission - Lottery	15000	5
194H - Commission / Brokerage	15000	5
194I -  Rent Land  and  Building  - F&F	180000	10
194I  Rent Plant/Machinery/equipment		2
194I- Rent by Individual/HUF(01.06.2017)	50000/PM	5	NA
194IA -Transfer of certain immovable property other than agriculture land	50 Lakh	1
194J - Professional Fees	30000	10
194LA - Immovable Property(compensation)	2.5 Lakh	10
194LA - Immovable Property(TDS exempted under RFCTLARR Act'(01.04.2017)

TDS RATE CHART FY 2018-19 AY 2019-20
Nature of Payment Made To		Indivi/ HUF	Other
Section – Description	Cut off (Rs.)	Rate (%)
194LB - Income by way of interest from infrastructure debt fund (non- resident)	-	5
194LB - Income by way of interest from infrastructure debt fund (non- resident)	-	5
Sec  194  LC  -  Income  by  way  of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012)	-	5
194LD - Interest on certain bonds and govt. Securities(from 01-06-2013)	-	5
196B - Income from units	-	10
196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)	-	10
196D - Income of FIIs from securities	-	20

Section 192
Nature of Payment	Salary
Deductor	Any person (employer)
Deductee	Any person (employee) individual
TDS rate	As per Slab rate applicable to individual
Threshold Limit	If Tax payable is nil on Salary Income
Time of deduction	At the time of Payment
Other points	Negative Income of House property may be Considered  for TDS calculation
192A
Nature of Payment	Premature withdrawal from EPF
Deductor	EPFO
Deductee	Resident
TDS rate	10%
Threshold Limit	50000 wef  01.06.2016
Time of deduction	At the time of Payment
Other points	TDS is applicable only if withdrawn before 5 year of contribution
Section 193
Nature of Payment	Interest on securities
Deductor	any person
Deductee	Resident
TDS rate	10%
Threshold Limit	Govt securities -10000 Debenture-5000
Time of deduction	credit or payment whichever is earlier
Other points
Section 194
Nature of Payment	Deemed dividend
Deductor	Indian company /company making payment in India
Deductee	Resident
TDS rate	10%
Threshold Limit	2500 to Individuals paid a/c payee cheque
Time of deduction	Distribution or payment whichever is earlier
Other points	No tds on exempted dividend u/s 10(34)
Section 194A
Nature of Payment	Interest other than securities
Deductor	(1)Any person other than Individual /HUF (2) Individual Huf having sales turnover /receipts exceeding the limit provided under section 44AB in immediately preceding year
Deductee	Resident
TDS rate	10%
Threshold Limit	10000(50000 for senior citizen) from banks 5000 from others
Time of deduction	credit or payment whichever is earlier
Other points	Adjustment in deduction increase/decrease can be made same as under section 192(salary)
Section 194B
Nature of Payment	winning from lottery/crossword puzzle etc
Deductor	any person
Deductee	any person
TDS rate	30%
Threshold Limit	10000
Time of deduction	At the time of Payment
Other points	Tax is deductible even for prize in Kind
Section 194BB
Nature of Payment	Winning of Horse race
Deductor	any person
Deductee	any person
TDS rate	30%
Threshold Limit	10000 form 01.06.2016
Time of deduction	At the time of Payment
Other points
Section 194C
Nature of Payment	TDS from payment to contractor sub contractor
Deductor	As per details
Deductee	Resident
TDS rate	if payee is individual/huf:1% other :2%
Threshold Limit	Single :30000 Total FY 100000 wef 01.06.2016
Time of deduction	credit or payment whichever is earlier
Other points	Material value excluded if shown in bill separately
194D
Nature of Payment	Insurance Commission
Deductor	Insurance company
Deductee	Resident
TDS rate	5% wef 01.06.2016
Threshold Limit	15000 from 01.06.2016
Time of deduction	credit or payment which ever is earlier
Other points	Form 15G-15H allowed wef 01.06.2017
Section 194DA
Nature of Payment	Payment of Life insurance not exempted u/s 10(10D)
Deductor	any person
Deductee	Resident
TDS rate	1% wef 01.06.2016
Threshold Limit	100000
Time of deduction	At the time of Payment
Other points	No deduction on payment on death of deductee
Section 194EE
Nature of Payment	payment of National saving scheme(deduction claimed 80CCA)
Deductor	any person
Deductee	Individual or HUF
TDS rate	10% wef 01.06.2016
Threshold Limit	Rs 2500
Time of deduction	At the time of Payment
Other points	No deduction on payment to heirs
194F
Nature of Payment	Units of Mutual Funds/UTI(deduction claimed 80CCB)
Deductor	any person
Deductee	Individual or HUF
TDS rate	20%
Threshold Limit	2500
Time of deduction	At the time of Payment
Other points	no deduction on payment to heirs
Section 194H
Nature of Payment	Commission / Brokerage
Deductor	any person
Deductee	Resident
TDS rate	5 % wef 01.06.2016
Threshold Limit	15000 wef 01.06.2016
Time of deduction	credit or payment which ever is earlier
Section 194G
Nature of Payment	Commission on Lottery
Deductor	any person
Deductee	Resident
TDS rate	5% wef 01.06.2016
Threshold Limit	15000 wef 01.06.2016
Time of deduction	credit or payment whichever is earlier
Other points
Section 194I
Nature of Payment	Payment of Rent
Deductor	Any person other than HUF/Individual
	HUF-Individual :sales /gross receipt exceeds one crore/50 lakhs
Deductee	Resident
TDS rate	Plant and Machinery/equipment :2% Land /building/furniture -10%
Threshold Limit	180000
Time of deduction	credit or payment whichever is earlier
Other points	TDS is deductible even if deductor is not owner
Section 194IB(wef 01.06.2017)
Nature of Payment	Payment of Rent
Deductor	Individual or HUF(not covered under audit 44AB)
	HUF-Individual :sales /gross receipt less than one crore/50 lakhs
Deductee	Resident
TDS rate	Rent 5 %
Threshold Limit	50000 per month
Time of deduction	Only Once in year -Last month of agreement/Previous year
TDS rate without PAN	As per 206AA but maximum up to last month Rent
Other points	TDS to be deposited under PAN no TAN required
Section 194 IA(effective from 01.06.2013)
Nature of Payment	Payment of immovable property
Deductor	Any person other than HUF/Individual
	HUF-Individual :sales /gross receipt exceeds one crore/50 lakhs
Deductor	any person
Deductee	Resident
TDS rate	1%
Threshold Limit	sale consideration up to 50 lakh
Time of deduction	At the time of Payment
Other points	Agriculture land not covered/TAN is not required to be obtained
Section 194J
Nature of Payment	Fees for professional services /Technical services/ royalty  /remuneration or fees or commission payable to director (not covered under 192)
Deductor	Any person other than HUF/Individual
	HUF-Individual :sales /gross receipt exceeds one crore/50 lakhs
Deductee	Resident
TDS rate	10% (2% on Call centers wef 01.06.2017)
Threshold Limit	30000(no Limit for Payment to director)
Time of deduction	credit or payment whichever is earlier
Other points	No tds on profession services for personal purpose
Payment of compensation on acquisition of certain immovable property(194LA)
Nature of Payment	Payment of compulsory compensation on acquisition of certain immovable property(other than agriculture land)
Deductor	Any person
Deductee	Resident
TDS rate	10%
Threshold Limit	sale consideration up to Rs 2.50 lakh
Time of deduction	At the time of Payment(cash/cheque/draft or any other mode)
Other points	Any payemnt made under RFCTLARR Act is exempted from TDS

Changes in TDS rates in Finance Budget-2018 

A. Tax deduction at source and manner of payment in respect of certain exempt entities

The third proviso to clause (23C) of section 10 of the Act provides for exemption in respect of income of the entities referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of said clause in a case where such income is applied or accumulated during the previous year for certain purposes in accordance with the relevant provisions. Section 11 of the Act also contains provisions relating to income from property held for charitable or religious purposes.

At present, there are no restrictions on payments made in cash by charitable or religious trusts or institutions. There are also no checks on whether such trusts or institutions follow the provisions of deduction of tax at source under Chapter XVII-B of the Act. This has led to lack of an audit trail for verification of application of income.

In order to encourage a less cash economy and to reduce the generation and circulation of black money, it is inserted a new Explanation to the section 11 to provide that for the purposes of determining the application of income under the provisions of sub-section (1) of the said section, the provisions of sub-clause (ia) of clause (a) of section 40, and of sub-sections (3) and (3A) of section 40A, shall, mutatis mutandis, apply as they apply in computing the income chargeable under the head “Profits and gains of business or profession”.

It is also inserted a similar proviso in clause (23C) of section 10 so as to provide similar restriction as above on the entities exempt under sub-clauses (iv), (v), (vi) or (via) of said clause in respect of application of income.

These amendments is applicable in relation to the assessment year 2019-20 and subsequent years

B)Increase in cutoff of TDS deduction Limit u/s 194A for Senior citizen  in respect of interest income from Banks & other institutions 

At present, a deduction upto Rs 10,000/- is allowed under section 80TTA to an assessee in respect of interest income from savings account. In Finance Act 2018 a new section 80TTB has been inserted so as to allow a deduction upto Rs 50,000/- in respect of interest income from deposits held by senior citizens. However, no deduction under section 80TTA shall be allowed in these cases.

Further as the interest up to Rs 50000 is eleigble for deduction so amended in section 194A has been made in Finance act ,2018 so as to raise the threshold for deduction of tax at source on interest income for senior citizens from Rs 10,000/- to Rs 50,000/-.

For Other interest Limit remains Rs 5000 for senior citizen .

C) Tax deduction at source on 7.75% GOI Savings (Taxable) Bonds, 2018

Government of India introduced 8% Savings (Taxable) Bonds, 2003 in 2003. Under the existing law, the interest received by the investor is taxable. Further the payer is liable to deduct tax at source under section 193 of the Act at the time of payment or credit of such interest in excess of rupees ten thousand to a resident.

Government has now decided to discontinue the existing 8% Savings (Taxable) Bonds, 2003 with a new 7.75% GOI Savings (Taxable) Bonds, 2018. The interest received under the new bonds will continue to be taxed as in the case of the earlier once. 

The provisions of section 193 has been amended in Finance act -2018 to allow for deduction of tax at source at the time of making payment of  interest on such bonds to residents. However, no TDS will be deducted if the amount of interest is less than or equal to ten thousand rupees during the financial year.

D) TDS on Income from Long term capital gain u/s 112A on equity to Non Resident

10% Long term capital gain has been made applicable from 01.04.2018 for resident as well Non resident. However if payment is made to non-resident then TDS@10 % is also deductible.

Notes to TDS RATE CHART FY 2018-19 AY 2019-20:

1. No TDS on service Tax: As per circular 01/2014 dated 13.01.2014 TDS is not applicable on service tax part if service tax is shown separately. 
2. No TDS on GST: As per Circular 23/2017 ,TDS is not applicable on service tax part if service tax is shown separately. 
3. TDS at higher rate i.e., 20% has to be deducted if the deductee does not provide PAN to the deductor.(read detail u/s 206AA) 
4. TDS on Good Transport wef 01.06.2015: TDS shall be applicable on payment to transporter wef 01.06.2015 .However tds exemption will be available only to those transporters who own ten or less goods carriages at any time during the previous year. Such a transporter would also need to furnish a declaration to that effect to the payer along with the PAN.
5. Surcharge on TDS on salary  is applicable if taxable salary is more than 50 lakh @ 10% and if salary is more than one crore @ 15 %
6. Surcharge on tax other than salary is not on payment made to resident. 
7. Surcharge on TDS  applicable on payment made to non-resident (See chart below) details )
8. TDS is deductible on full amount if threshold limit is crossed during the year including the amount paid earlier during the year along with interest, if applicable.
9. No Cess on payment made to resident: Health and education cess @ 4%  is not applicable in case of resident Individual /HUF/ Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary. Health and education cess @ 4% instead of education cess 3 % earlier is deductible at source in case of non-residents and foreign company. 
10. Section 206AA in the Act makes furnishing of PAN by the employee compulsory in case of receipt of any sum or income or amount, on which tax is deductible. If employee (deductee) fails to furnish his/her PAN to the deductor , the deductor has been made responsible to make TDS at higher of the following rates: 

• i) at the rate specified in the relevant provision of this Act; or 
• ii) at the rate or rates in force; or 
• iii) at the rate of twenty per cent. The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS.
• However, where the income of the employee computed for TDS u/s 192 is below taxable limit, no tax will be deducted. Health and education cess @ 4%  is not to be deducted, in case the tax is deducted at 20% u/s 206AA of the Act.
• In Case of TCS without pan rate shall be 5 % or double of the prescribed rate ,whichever is higher.

10. TDS by Individual and HUF (Non Audit) case not deductible :An Individual or a Hindu Undivided Family whose total sales, gross receipts or turnover from business or profession carried on by him does not exceeds the monetary limits (Rs.100,00,000 in case of business & Rs.50,00,000 in case of profession) under Clause (a) or (b) of Sec.44AB during the immediately preceding financial year shall not be liable to deduct tax u/s.194A,194C, 194H, 194I & 194J.So no tax is deductible by HUF/Individual in first year of operations of business even sales/receipt is more than 100/50 Lakh.

5.Surcharge /Cess applicable on TDS/TCS

1.Surcharge on payment made to resident other than salary is not deductible

2.In case of nonresident shall be increased by a surcharge in the case of—

(i) every non-resident being an individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

(a) at the rate of ten per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds fifty lakh rupees but does not exceed one crore rupees;

(b) at the rate of fifteen per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore

rupees;

(ii) every non-resident being a co-operative society or firm or local authority at the rate of twelve per cent. Where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees;

(iii) every company other than a domestic company at the rate of two per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees but does not exceed ten crore rupees;

(iv)every company other than a domestic company at the rate of five per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds ten crore rupees.

Surcharge /Cess applicable on TDS/TCS
Particulars		Payment	Surcharge	Cess
Resident	Individual	Salary (up to 50 lakh)	No	Yes(4%)
	Individual	Salary (50 lakh - 1 crore)	Yes (10%)	Yes(4%)
	Individual	Salary (> I crore)	Yes (15%)	Yes (4%)
	Non- corporate	Any	No	No
	Corporate	Any	No	No
Non- Resident	Individual or HUF or AOP or BOI or every artificial juridical person	Any payment  up to 50 lakh	No	Yes (4%)
		Any Payt (50 lakh-1crore)	Yes(10%)	Yes (4%)
		Any Payments> 1 Crore	Yes(15%)	Yes (4%)
	cooperative society-Firm	Any payment > 1 Crore	Yes (12%)	Yes (4%)
	Non Domestic Company	Any payment                              (> 1 Crore to 10 crore)	Yes (2%)	Yes (4%)
		Any payment > 10 Crore	Yes  (5%)	Yes (4%)

6. TCS (Tax Collection at Source Rates FY 2018-19 AY 2019-20

TCS rate chart is given below for your ready reference.

TCS RATES FOR FY 2018-19 AY 2019-20
Nature of Payment	TCS Rate %
Scrap	1.00
Tendu Leaves	5.00
Timber  obtained  under  a forest lease or other mode	2.50
Any other forest produce not being a timber or tendu leave	2.50
Alcoholic Liquor for human consumption	1.00
Parking   Lot,   toll   plaza, mining and quarrying	2.00
Minerals, being coal or lignite or iron ore (applicable   from   July   1,2012)	1.00
Sale of motor vehicle of the value exceeding Rs. 10 Lacs;(wef 01.06.2016)	1.00
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)
Bullion if consideration (excluding  any coin  / article weighting 10 grams or   less)  exceeds Rs. 2  Lakhs or jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received in cash)	Not applicable as cash transaction more than 2 Lakh not allowed wef 01.04.2017
Sale in cash of any goods (other than bullion and jewellery) or providing of any services (other than payments on which TDS is made) exceeding Rs. 2 Lacs
TCS Rate without PAN
Double of TCS rate as above or 5% ,which ever is higher

TCS RATES FY 2018-19 AY 2019-20 (Detailed)

Category-1

Every person, being a seller, shall at the time of debiting the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer, whichever is earlier, collect from the buyer of any goods of the nature specified in column (1) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (2) of the said Table, of such amount as income-tax:

Nature of Goods	RATE (in %)
Alcoholic liquor for human consumption	1
Tendu leaves	5
Timber obtained under a forest lease	2.5
Timber obtained by any mode other than a forest lease	2.5
Any other forest produce (not being timber/tendu leaves)	2.5
Scrap	1
Minerals, being coal or lignite or iron ore	1

Category-2

Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as "licensee or lessee" ) for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee, whichever is earlier, collect from the licensee or lessee of any such licence, contract or lease of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax:

Nature of contract or licence or lease, etc.	Rate (in %)
Parking lot	2
Toll plaza	2
Mining and Quarrying	2

Category-3

Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery or any other goods (other than bullion or jewellery) or providing any service, shall at the time of receipt of such amount in cash, collect from the buyer, a sum equal to 1 % of sale consideration as income-tax, if such consideration,—

(i) for bullion, exceeds Rs. 2,00,000; or

(ii) for jewellery, exceeds Rs. 5,00,000; or

(iii) for any goods, other than those referred to above, or any service, exceeds Rs. 2,00,000.

The above category has been abolished wef 01.04.2017 as cash receipt of Rs 2 lakh or more attracts penalty of 100 % so no need to collect TCS on above category.

Category-4

Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding Rs. 10,00,000, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 1% of the sale consideration as income-tax.

In order to reduce compliance burden in certain cases, it is proposed to amend section 206C, to exempt the following class of buyers such as the Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; local authority as defined in explanation to clause (20) of Section 10; a public sector company which is engaged in the business of carrying passengers, from the applicability of the provision of subsection (1F) of section 206C of the Act. This amendment will take effect from 1st April, 2017.

7. Due date to Deposit TDS and TCS & Mode FY 2018-19

To Know the full concept of Due date to deposit TDS ,we must have to read it in two Parts  

1. When Tax is to be deducted/collected?
2. When tax deducted at source (TDS/TCS) is to be deposited (TDS due date of deposit)?

When tax is to be deducted?

1. At the time of credit or payment, whichever is earlier
• 193- Interest on securities
• 194A- Interest Other than “Interest on securities”
• 194C- Payment to contractors / sub contractors
• 194D – Insurance commission
• 194H – Commission or Brokerage
• 194G- Commission on sale of lottery tickets
• 194I- Rent
• 194J- Professional or technical fees
2. Before making payment or distribution
• 194- Dividend
3. At the time of payment
• 192- Salaries
• 194B- Winning from lotteries / crossword puzzles
• 194BB Winnings from horse races
• 194EE – Payment from National Saving Scheme
• 194F Payment for repurchase of units by UTI / mutual funds
• 194 -IA : payment of transfer of immovable property >50 Lakh
• 194LA: Payment of compensation on acquisition of certain immovable property

When Tax is to be collected 

1. At the time of Debit of Account or Receipt ,whichever is earlier
• Scrap 
• Tendu Leaves 
• Timber obtained under a forest lease or other mode 
• Any other forest produce not being a timber or tendu leave 
• Alcoholic Liquor for human consumption 
• Parking Lot, toll plaza, mining and quarrying Minerals, being coal or lignite or iron ore (applicable from July 1,2012) 
2. At the time of receipt/collection  
• Sale of motor vehicle > 10 lakh

When date of deduction/Collection is decided then according to point of deduction/collection then due date to deposit is to be decided as under.

Due Date to Deposit TDS /TCS
Tax to be deducted  by Govt  Office
1	Tax deposited without challan	Same day
2	Tax deposited with challan	7th of next month
Tax deducted  by Non-govt deductors
1	Tax deductible in March	30th  April  of  next F.Y
2	other months & tax on perquisites opted to be deposited by employer	7th of next month
TDS on transfer of Immovable property 194IA
1	Tax deductible in a particular Month (up to 31.05.2016)	7th of next month
2	Tax deductible in a particular Month  ( wef 01.06.2016)	30th of next month
Tax Collected at Source (TCS)
1	Tax collectable  in a particular Month	7th of next month

Challan to deposit TDS and TCS & mode of deposit

1. For all sections under TDS and TCS one challan is to be deposited ie ITNS-281 and to deposit TDS/TCS -TAN(tax deduction & collection account number is to be obtained and used.
2. Deductor can adjust excess tds deposited in one section /assessment year with another section /assessment year so no need to deposit section wise challan.
3. However for TDS collected under section 194IA (TDS on immovable property over 50 Lakh) tax is to be deposited on challan cum return 26QB.Further to deposit this challan TAN number is not required though deductor will FILL his PAN 
4. TAX must be deposited through online mode only or through designated bank branches.

Refund of Excess TDS deposited:

As pointed out above in point number 2, you may adjust excess TDS in other section /assessment year/quarter. However if you want refund then you may apply on form 26B online for excess TDS.

“Time and mode of payment to Government account of tax deducted at source or tax paid under sub­ section (1A) of section 192. Rule: 30.

(1) All sums deducted in accordance with the provisions of Chapter XVII‐B by an office of the Government shall be paid to the credit of the Central Government ‐

• (a) on the same day where the tax is paid without production of an income‐tax challan; and
• (b) on or before seven days from the end of the month in which the deduction is made or income‐tax is due under sub‐section (1A) of section 192, where tax is paid accompanied by an income‐tax challan.

Tax to be deducted/collected  by Govt  Office
1	Tax deposited without challan	Same day
2	Tax deposited with challan	7th of next month
3	Tax on perquisites opt to be deposited by the employer	7th of next month

(2) All sums deducted in accordance with the provisions of Chapter XVII‐B by deductors other than an office of the Government shall be paid to the credit of the Central Government ‐

• (a) on or before 30th day of April where the income or amount is credited or paid in the month of March; and
• (b) in any other case, on or before seven days from the end of the month in which‐ the deduction is made; or income‐tax is due under sub‐section (1A) of section 192.

Tax deducted/collected by other
1	tax deductible in March	30th April of next year
2	other months & tax on perquisites opted to be deposited by employer	7th of next month

(2A) Notwithstanding anything contained in sub‐rule (2) ,any sum deducted under section 194-IA shall be paid to the credit of the Central Government within a period of seven days 30 days (wef 01.06.2016) from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB

 (3) Notwithstanding anything contained in sub‐rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table:‐

SrNo	Quarter ended On	Date of payment
1	30th June	7th July
2	30the September	7th October
3	31st December	7th January
4	31st March	30th April

8.Person required to file E TDS Return & Duties of Deductor

For quick and efficient collection of taxes, the Income-tax Act has incorporated a system of deduction of tax at the point of generation of income. This system is called “Tax Deducted at Source” commonly known as TDS. Under this system, tax is deducted at the point of origination of income. Tax is deducted by the payer and the same is directly remitted to the Government by the payer on behalf of the payee.

The provisions of tax deducted at source presently apply to several payments like salary, interest, commission, brokerage, professional fees, royalty, etc.​

Meaning of TAN

Tax Deduction Account Number is a 10-digit alphanumeric number issued by the Income-tax Department (herein after referred to as ‘TAN’). TAN is required to be obtained by all persons who are responsible to deduct tax at source (‘TDS’) except in case of a person who is responsible to deduct tax at source under Section 194-IA.

Given below is an illustrative TAN:

DELM12345L

First 3 alphabets of TAN represent the jurisdiction code, 4th alphabet is the initial of the name of the TAN holder. The next 5 digits of the TAN are system generated numbers between 00001 to 99999 and last character, i.e., the tenth character is an alphabetic check digit.

Persons liable to apply for TAN

Every person who is liable to deduct tax at source is required to obtain TAN. However, a person who is required to deduct tax under Section 194-IA​ and 194IB can use PAN in place of TAN as he is not required to obtain TAN.

Relevance of TAN

It is mandatory to quote TAN in following documents:

(a) TDS statements i.e. return

(b) Challans for payment of TDS

(c) TDS certificates

(d) Other documents as may be prescribed

Penalty

If a person fails to apply for TAN or failed to quote or quotes incorrect TAN in the above specified documents, a penalty of Rs. 10,000 shall be levied.

Procedure to obtain TAN

An application for allotment of TAN shall be made in duplicate in Form No. 49B at any TIN Facilitation Centers (TIN-FC). Addresses of TIN-FCs are available at NSDL-TIN website. Alternatively, one can apply for TAN online at the NSDL-TIN website.

Charges for obtaining a TAN

A fee of Rs. 55 + service tax (as applicable) should be paid as processing fee while submitting application for TAN.

​​​Person liable to furnish TDS statement

Every person responsible for deduction of tax shall furnish quarterly statements in respect thereof.

DUTIES OF TAX DEDUCTOR/COLLECTOR

1. To apply for Tax Deduction Account Number (TAN) in form 49B, in duplicate at the designated TIN facilitation centers of NSDL(please see www.incometaxindia.gov.in), within one month from the end of the month in which tax was deducted. However for tax deduction u/s 194IA (tds on transfer of immovable property) the deductor may use PAN instead of TAN
2. If a deductor has many offices then deductor may take one TAN for all branches or take separate TAN for each TAN. If separate TAN is taken then deductor can check TDS compliance report of all TAN at TDSCPC website 
3. To quote TAN (10 digit reformatted TAN) in all TDS/TCS challans, certificates, statements and other correspondence.
4. To deduct/collect tax at the prescribed rates at the time of every credit or payment, whichever is earlier, in respect of all liable transactions.
5. To remit the tax deducted/collected within the prescribed due dates by using challan no. ITNS 281 by quoting the TAN and relevant section of the Income-tax Act.
6. To issue TDS/TCS certificate, complete in all respects, within the prescribed time in Form No.16(TDS on salaries), 16A(other TDS) 27D( TCS).
7. To file TDS/TCS quarterly statements within the due date and revise the same ,wherever necessary.
8. To mention PAN of all deductees in the TDS/TCS quarterly statements.

TRACES online portal for deductors and deductees :

TRACES is a web-based application of the Income Tax Department that provides an interface to all stakeholders associated with TDS administration. It enables viewing of challan status, downloading of Consolidated File, Justification Report and Form 16 / 16A as well as viewing of annual tax credit statements (Form 26AS). The deductor has to register at TRACES website to avail facility available at the website 

Facility available at Traces for deductors 

1. Download Consolidated  File / 
2.  Download Form 16 / 16A / 16B / 27D.
3. Online correction of TDS returns 
4. Refund of Excess TDS

5.      Justification report: After filing of the return, Department shall process the return and issue intimation of return processed without default or with defaults. The defaults are mainly on account of deduction of tax at less rate , late filing of return ,interest due to late deposit of Tax ,mismatching overbooking of challan , incorrect pan details etc. In intimation only summary of default is sent to check the details deductor is supposed to download Justification report from TDSCPC website. 

9.  Due date TDS-TCS return 24Q, 26Q ,27Q,27EQ and Form 16 , Form 16A for Financial year 2018-19 for Govt as well as non Govt deductor (notification 30/2012 dt 29/04/2016)

Quarterly return Form  

Deductor is required to file TDS/TCS return quarterly, however nil return is not mandatory. These returns may be filed at any TIN-FC by paying a small fee. However you may upload original return directly at e filing site free.

1. 24Q   : For TDS deducted from Salary Income 
2. 26Q   : For  TDS deducted from all other section except salary & 194IA from resident
3. 27Q   :  For TDS deducted from Non-resident except salary
4. 27EQ : For Tax collected at source
5. 26QB : For section 194IA separate return is not required ,challan cum return is to be filled on form 26QB (Tax to be deposited within 30 days(wef 01.06.2016)(earlier it was 7 days) from the end of the month in which tax is to be deducted )

Due date TDS Return 24Q, 26Q ,27Q TCS Return 27EQ        Form 16  Form 16A for Financial year 2018-19 for Govt as well as non Govt deductor
Sl. No.	QTR ENDING	RETURN		TDS-TCS Certificate
		TDS	TCS	FORM 16A	FORM 16	FORM 27D
1	30th June	31st July	15th July	15th Aug	15 June,2019 15.07.2019	30th July
2	30th Sep	31st Oct	15th Oct	15th Nov		30th Oct
3	31st Dec	31st Jan	15th Jan	15th Feb		30th Jan
4	31st Mar	31st May  (30.06.19 Form..24Q)	15th May	15th June		30th May

Nil TDS return is not mandatory 

As per income tax rules/act Nil tds return is not mandatory, however to facilitate the deductors and to update data Govt has provided a facility on Traces website for declaring NIL tds return.

Correction statement of  E TDS return 

You may file correction return any number of times, No time limit has been defined yet.  This return can be filed with TIN-FC .To file the revised TDS return you have to download consolidated FVU file from TDSCPS website The correction return filing facility has not been provided at Income tax India e filing site but we expect that soon it will be made available. However you may correct challan details/tag replace challan/allocation of interest and fees online/move deductee rows from unmatched challan without digital signature at www.tdscpc.gov.in and pan details with digital signature. If short payment of TDS is not settled by Deductor then he cannot download form 16A/16 of that quarter/year.

TDS Certificate 

1. Form 16 : For tds deducted from salary
2. Form 16A : For other Tax deductions except salary & 194IA
3. Form 16B : TDS from section 194IA (to be issued within  45 days wef 01.06.2016)(earlier it was 22 days) from the end of the month in which tax is to be deducted )
4. All above form must be downloaded from TDSCPC (TRACES) website .However in case of Form 16 only PART-A is to be downloaded from TRACES website. Earlier this was mandatory for only companies ,Banks and co-operative societies engaged   in Banking services with effect from 01.04.2011 through circular number 3/2011.
5. Form 16A downloaded from TDSCPC can be signed manually or can be authenticated through digital signature only.

Read more from links given below

1. Procedure How  to register at TRACES (www.tdscpc.gov.in) and 
2. How to download Form 16A form TRACES (www.tdscpc.gov.in)
3. HOW TO DOWNLOAD FORM 16 FROM TDSCPC WEBSITE
4. How to download Form 16B from TDSCPC website 

10. Interest on Late deposit of TDS/TCS & Penalty & Prosecution & other consequences on Non deposit of TDS/TCS 

As per income-tax act/rules, interest on late deposit of TDS is payable under the following two circumstances

1. Tax is not deducted , when it was deductible
2. Tax once deducted, is not paid on or before due date

INTEREST ON LATE DEDUCTION/DEPOSIT OF TDS-TCS
Section	Nature of default	Interest	Period
Interest under section  201(1A)	Non-deduction of tax at source, either in whole or part	1.00% per month	From the date on which tax was deductible to the date on which tax is actually deducted
	After deduction, nonpayment of tax, either in whole or part. Non- payment of tax u/s 192(1A)	1.50% Per Month	From the date on which tax was deducted to the date on which tax is actually paid
Simple Interest shall be calculated and part of month will be treated full Month

Consequences if default is made in payment of TDS

A deductor would face the following consequences if he fails to deduct TDS or after deducting the same fails to deposit it to the credit of Central Government’s account:

·         a) Disallowance of expenditure: As per section 40(a)(i) of the Income-tax Act, any sum (other than salary) payable outside India or to a non-resident, which is chargeable to tax in India in the hands of the recipient, shall not be allowed to be deducted if it is paid without deduction of tax at source or if tax is deducted but is not deposited with the Central Government till the due date of filing of return.

However, if tax is deducted or deposited in the subsequent year, as the case may be, the expenditure shall be allowed as deduction in that year.

Similarly, as per section 40(a)(ia), any sum payable to a resident, which is subject to deduction of tax at source, would attract 30% disallowance if it is paid without deduction of tax at source or if tax is deducted but is not deposited with the Central Government till the due date of filing of return.

However, where in respect of any such sum, tax is deducted or deposited in subsequent year, as the case may be, the expenditure so disallowed shall be allowed as deduction in that year.

The same rule is also applicable on Income from other sources.

·         b) Levy of interest: As per section 201 of the Income-tax Act, if a deductor fails to deduct tax at source or after the deducting the same fails to deposit it to the account of Central Government then he shall be deemed to be an assessee-in-default and liable to pay simple interest as follows:

(i) at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and

(ii) at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid.

·         c) Levy of Penalty: Penalty of an amount equal to tax not deducted could be imposed under section 271C. Penalty shall be charged under section 221 if deductor fails to deduct and pay tax to the credit of Central Governm​ent. The penalty shall be levied to the extent the Assessing Officer directs, however, the total amount of penalty shall not exceed the amount of tax in arrears.

d) Prosecution: If a person fails to pay to the credit of the Central Government the tax deducted at source by him he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.

e) Dis allowance of Expenses : If TDS is not deposited with in due date of filing of Income tax return then 30 % of expenses on which TDS is deductible will be disallowed as expenses in current year under section 40A(ia)

11 : Late Fees -Penalty on Late filing of TDS return 

1. Failure to apply for TAN in time or Failure to quote allotted TAN or Wrong quoting of TAN :  Penalty of Rs.10,000 is leviable u/s.272BB

2. Late Filing of TDS-TCS statement:  Deductor will be liable to pay by way of fee of Rs 200 per day till the failure to file TDS statement continues. However, the total fee cannot exceed the amount of TDS deductible from which statement was required to be filed.(section 234E) .Further as per section 234E ,Late fees is required to be paid before the filing of TDS/TCS return. Read How to avoid Late fees u/s 234E (read more post related to section 234E)

3. Failure to File TDS return on Time and filling of incorrect statement: New Section for Penalty for non submission of ETDS /ETDS return (section 271H)(applicable from 01.07.2012)

Failure to deliver statement within time prescribed u/s 200 (3) or to the proviso to sub-section (3) of section 206C may liable to penalty which shall not be less than Rs. 10,000/- but which may extend to Rs. 1,00,000/-. No penalty if payment of tax deducted or collected along with fee or interest and delivering the statement aforesaid before the expiry of 1 year from the time prescribed for delivering the such statement. However No penalty shall be imposed u/s 271H if the person proves that there was reasonable cause for the failure.(section 273B)

4. Penalty on Late issue of TDS certificate form 16/Form 16A/form 27D/Form 16B :

If TDS certificate is not issued within due date as prescribed then penalty @ 200 per day may be imposed till the default continues for each default. However, the maximum penalty cannot exceed the amount of TDS deducted for which TDS certificate was required to be issued.

5. Assessee In default (amendment in section 201)

The Deductor will not to be treated as assessee in Default provided the resident payee has furnished his return u/s 139 and has taken into account such amount for computing income in such Return of Income and has paid the Tax Due on the income declared by him in such return of income and furnishes a certificate to this effect, duly certified by a CA, in the prescribed form. This form is yet to be notified.

However, the interest for non deduction of tax would be payable from the date on which such tax was collectible till the date of furnishing of return of income by the resident payee.

12 .Various Passwords required to Use Traces Website

Functionality	Password	Example
Password Formats for Tax Deductors
Registration	It should contain a minimum of 8 alphanumeric characters with at least one capital letter.	Password123
Consolidated File	TAN_Request Number of request submitted	DELA11111D_23456
Form 16/ 16A	TAN in capital letters	DELA11111D
Justification Report	JR_TAN_FormType_Quarter_FY	JR_DELA11111D_24Q_Q3_2010-11
Intimation through email	TAN_Date of filing original statement (in DDMMYYYY format)	DELA_13102013
Password Formats for Tax Payers
Registration	It should contain a minimum of 8 alpha numeric characters with at least one letter in upper case	Password123
Form 26 AS	Date of Birth (in DDMMYYYY format)	If your date of birth is 01-Feb-1980, password will be 01021980
Form 16B	Date of Birth (in DDMMYYYY format)	If your date of birth is 01-Feb-1980, password will be 01021980

TDS RATE CHART FY 18-19 AY 19-20  VERSION: 1 UPDATED: 01/04/2018 

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Complete details Of TDS rate changes for financial year 2018-19 Tcs rate changes, Due date to deposit TDS , Due date to issue Form 16, Due date to issue  Form 16A , Due date for filing E-TDS return Form 24Q/26Q,27EQ , Penalty and interest provision for late deposit of TDS ,consequences for default in filing of E tds Return , TDS rate applicable in case of Non submission of PAN ,TDS rate applicable on service tax or not , on job work or not , which rate is applicable to individual , HUF, who should deduct TDS , who should not deduct tds ,whether tds should be deducted on service tax on rent or professional services all such topics has been covered here under.Passwords to open various TRACES/e filing related files/utilities

TDS RATE CHART FY 18-19 AY 19-20  VERSION: 1 UPDATED: 01/04/2018