#LetsCrackTax CA Amit Mahajan

12 TAX DEDUCTED AT SOURCE

Tax Deducted at Source

=
1. Tax is deducted only if amount is taxable in hands of receiver.
31 July 2019 2 August 2019
2. TDS requirement arise:
i. at the time of payment XYZ Exp A/c (Dr) … Rs 50,000 Payee A/c (Dr)…. Rs 50,000
OR To Payee A/c…Rs 50,000 To Bank…. Rs 50,000
ii. at the time crediting the A/c of payee
Whichever is earlier

3. In following cases TDS deducted only at the time of payments:

÷
a. Salary XYZ Exp A/c (Dr) …Rs 50,000 Payee A/c (Dr)…. Rs 45,000
b. Winnings To Payee A/c….Rs 45,000 To Bank…. Rs 45,000
c. Maturity of life insurance policy To TDS A/c.. Rs 5,000

4. If payee fails to furnish his PAN to the payer,

TDS rate shall be (Sec 206AA):
i. Rate as per respective section (Rates in force)
OR
ii. 20% (5% in case of 194-O and 194Q)

✓ 1. If the payment is made by payer without TDS, then payee shall be responsible to make payment of tax directly. However, if the
tax has been deducted by payer, but not deposited with Government, then payee cannot be called upon to pay that much tax.

TAX DEDUCTED AT SOURCE 104

#LetsCrackTax CA Amit Mahajan

Section Nature Payer Payee Rate Additional Note

E-
192 Salary Any person Employee (R / S l a b 1. Employee to furnish necessary details to Employer related to other
✓ NR) Rate income & Deduction of employee
2. Employer shall not consider any loss except house property loss
3. At the time of payment
192A Accumulated Any person Employee 10% 1. TDS applicable only if it is taxable in the hands of employee
balance of 2. NO TDS if amount is < Rs 50,000
✓ Provident Fund 3. To promote the savings – if amount is withdrawn < 5 years (Except for
ill health, business discontinued, cessation of employment) – TDS is
applicable
4. No tax on withdrawal – if he has opted for transfer of balance to new
employer
5. If PAN is not furnished by Employer – Tax @ MMR
193 TDS on
interest on
0
Any person Any resident 10% 1. NO TDS if interest
person - Paid to LIC, GIC
✓ securities -
-

Payable on any Securities of CG or SG

-

- DMAT secure ties

- -

- National defense Bonds / Loan, National Devt Bonds

Note: It may be noted that TDS has to be deducted in respect of
interest payable on 8%Savings (Taxable) Bonds, 2003, or 7.75% Savings
(Taxable) Bonds, 2018, only if such interest payable exceeds 10,000
during the financial year.
194 TDS on P r i n c i p a l Resident 10% 1. TDS on – amount distributed / paid by the company
✓ Dividends Officer of Shareholder 2. Threshold Limit:-
Domestic NO TDS if BOTH of the following are satisfied:-
Company 1. Dividend is paid by any mode OTHER THAN Cash; AND
2. AGGREGATE of the dividend < Rs. 5,000
3. NO TDS if payment is made to: Elec

µ
.

cash Elea
cash
Goss
1. LIC,
ross
60-0
Esso ✓
TD>
2. GIC, ☒
✓ TD> ✓ tDs×

3. Subsidiaries of GIC

TAX DEDUCTED AT SOURCE 105

#LetsCrackTax CA Amit Mahajan

Section Nature Payer Payee Rate Additional Note

194A TDS on Any person Employee
= (R / 10% 1. TDS NOT required to be deducted if (BOB FIS B)
interest(other NR)
=
✓ B2 = Int paid by Banks / Co-op Bank / Post office upto 40,000 (Rs 50,000,in
than interest) Other than person case of payee, being a resident senior citizen)
Any

¥
on securities
Individual O = In other cases its upto 5,000
/ HUF F = Int paid by firm to partners
whose I = Int on Income tax
S = Int on Bank Saving A/c
Total o
B = Int paid TO any Bank / LIC/ UTI / Any Insurer
↳ an

/sangu%f Dasa Ltd

income
- - - -

/ Gross Note :- Bank opting core banking solutions (CBS)then, the limit of Rs
receipts / 40,000 will not be per Branch but will be per Bank / Co-op society
④ TO

uok5kPk;¥±tsa"B ✓2. NO TDS

l FB s
B
o B

< 1 Cr in Interest paid by Co-op society (other than Co-op Bank) to its members
case of or to any other Co-op society.
business /
50 Lakhs However, the Co-operative Society referred to here will have to
in case of deduct TDS if BOTH of the following are satisfied:-
profession i. Sales, GR or TO > 50 Cr. during the FY immediately PRECEDING
the “FY in which such interest is credited/paid”; AND
ii. The AGGREGATE of such interest > Rs 40,000 (50,000 in case
payee is a Senior Citizen)
192

192A
193

194 ✓3. NO TDS - Interest paid in respect of certain scheme of post office,
Kisan Vikas Patra, India Vikas Patra, National Saving Certificate, P.O
tE monthly income A/c, P.O. Recurring deposits

TAX DEDUCTED AT SOURCE 106

#LetsCrackTax CA Amit Mahajan

Section Nature Payer Payee Rate Additional Note

194B Winning from Any person Any 30% If winning is upto Rs 10,000 = NO TDS

✓
-

lotteries, person
=

cross word NOTE: If winning is in kind then organizer (say KBC) will realize
puzzles, card winning only after ensuring that tax on winning paid to Govt
games, etc
194BB Winning from 1. Bookmaker Any 30% If winning is upto Rs 10,000 = NO TDS

✓ horse race
=
2. Person who
has been granted
person

license for
i. Horse racing
ii. Arranging for
wagering /
betting in any
race course
✓
slab rate
192 →
salary →

I 192 A lot

lot
.

193
.

194 to

ÉBB FISB

¥]iosss1
-

-
-

TAX DEDUCTED AT SOURCE 107

#LetsCrackTax CA Amit Mahajan

Section Nature Payer Payee Rate Additional Note

I
194C TDS onAny person(Other Resident If contactor 1. NO TDS if:
contract
than Individual / payee is: - a) Single payment upto 30,000 OR
HUF/ AOP / BOI Individual b) Aggregate of payment in PY upto Rs 1,00,000
whose TS/ GR/ TO / HUF =
”does not EXCEED 1%Others = 2. NO TDS if contract is for personal purpose of individual / HUF
1 Cr In case of 2% =

Business OR 50 3. TDS is required to be deducted if any person is liable for carrying

lakhs in case of out any WORK. For the purpose of contract, work includes-
Profession” in • Advertisement, Broadcast, Telecast
the immediately • Catering
PRECEDING FY) • Carriage of goods, Passenger other than Railway
Some important issues basis CBDT circular: • Manufacturing / Supplying of any product as per specification
am
of customer out of material purchased / supplied by such
customer (Job work) or its associate, being a person placed
194C 194C similarly in relation to such customer as is the person placed
Customer Ad Agency TV channel in relation to the assessee under the provisions contained in
Section 40A(2)(b)

=
Netflix 4. No TDS if payment made to transporter & he does not own
Payment made by TV channel / broadcasters to more than 10 vehicles at any time during PY & he furnishes a
-

Production house for production of content declarations + PAN

✓
5. In case of Job work, the TDS shall be deducted –
If program is as per specifications If right of content already •
On the invoice value excluding the value of material, if
of telecaster & broadcaster produced by production material value mentioned separately in invoice
and copyright of content are house is acquired by • On the whole of the invoice value , if value of material is not
also transferred to telecaster / telecaster / broadcaster mentioned separately in the invoice.
Broadcaster -
6. Contract also includes sub contract.
7. Gas Transportation charges + sale of natural gas – NO TDS as
WORKS CONTRACT – 194C NO WORKS CONTRACT – NO 194C
it is contract for sale and NOT a works contract

TAX DEDUCTED AT SOURCE 108

 "
' ' '
"
i' s
,

=÷-

g-
or
A lad
a
Ananya
.

Material has to be

,µ¥d ^^

provided red ant

-

Job
worker
vedano by
t

]
" "" "
" "

provides only
→

to be provided Ananya
service
stitching .

Note if material is provided

5*-1
-

the associate cs then

by
,

will be applicable
also 194C

for verdant
.
0 I

in
>

in ^
a

Amit Sangram
if 514/23 → as ,
ooo

717123 25,000
2) -

5) 2/11/23 → 28,000

f) 1070 = 27930
29,000
4) 1/1/24 →

1¥
 #LetsCrackTax CA Amit Mahajan

Section Nature Payer Payee Rate Additional Note

194D Tax on Insurance company Resident agent 5% NO TDS if = commission upto Rs 15,000 per annum
✓ insurance
commission
194DA TDS on Any person Resident person 5% NO TDS if –
maturity 1. a) Amount exempted u/s 10 (10D)
proceeds of a b) Maturity amount less than Rs 1,00,000
life insurance 2. TDS required to be deducted only on income
policy portion i.e. (Maturity Proceeds minus premium
paid).

194E TDS on Any person NR sportsman / 20% + Payment made for:

✓ payment to NR NR entertainer Surcharge a. Participation in any game in India i.e. IPL / PBL
sportsman / (not a citizen of + Cess b. Advertisement
Association / India) / NR Sports c. Contribution of any article in newspaper etc.
Entertainer Association d. performance in India.

194EE Deposits National Savings Any person 10% NO TDS if amount is < Rs 2,500
✓ you are
under National Scheme
going to

# Savings Other than heirs

remember
this -

Scheme of the assessee

194G TDS on Any person Any person 5% NO TDS if commission upto Rs 15,000 p.a.
r commission on
sale of lottery
tickets
SR
if 192
commission ☐ 192 1947
192A '° "
' "
5% → 1530
mm -
'

☐ ↳ Insurance " "" "

•
iqy ,

:÷÷ ]
"
" " "
lstt sale ticket 5% → ' 5- °
IUUE
qua ↳
→
☐%
ay
.

lay , , ,
, qz , .

Iau EE
'

5% ' TT
/Broke
" →

] 10% lay µ Ls
-
.

5 194A csmm
m
6¥30 "
IAUE -
MR
- est -1s -1C
.
. taut
7] 196 BB

1941T
< Dtoo
196 EE - Nss
-
toy .
-

¥_¥ ]
✗ " '

✗ "

iaupp

TAX DEDUCTED AT SOURCE 301411 109

.

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#LetsCrackTax CA Amit Mahajan

Section Nature Payer Payee Rate Additional Note

194H TDS on Any person (Other Any resident 5% 1. No TDS if commission is upto 15,000 p.a.
commission and than Individual / HUF person
brokerage whose TI / GR / TO 2. No TDS if commission / Brokerage is relating
does not exceed 1 Cr to securities like commission to underwriters,
in case of business / Brokerage on public issue, Brokerage on stock
50 Lakhs in case of exchange transaction etc.
profession)
194I TDS on rent Any person (Other Any resident P&M = 1. No TDS if rent upto 2,40,000 p.a. (if property
than Individual / HUF person 2%Land, is owned by more than one then limit of
whose TI / GR / TO Building 2,40,000 applied to each co-owner)
does not exceed 1 Cr and
in case of business / Furniture 2. Non refundable deposit, arrears of rent
50 Lakhs in case of = 10% received, advance rent also eligible for TDS.
profession)
✓
3. Passenger service fee paid by airlines co. to
-21
191M£ airport authority - TDS u/s 194C and NO 194I
.

1)
4. If rent include municipal taxes - No TDS on
municipal taxes
2) 1- / BI Furniture →
to -1 .

5. 194-I = Not applicable for cooling charges

paid by to customers to cold storage
192 19413
last A
lace

A C H J R
6. Lumpsum lease premium paid for acquisition
lab iauE I
⑨
-

nurse
.

,÷"_
lay A
1944

:÷ 0 8
of a long term lease – acquisition of any long
lay BB ,
n
>
M term lease rights of any property. However,
payee
÷
.

Payer it should not be adjusted from periodic rent

B stor payable.
p SOL
f
Ind / HUF
ls ¥
Tax Audit
To 95h TDs ✓

TAX DEDUCTED AT SOURCE 110

 TANisnotreau.IQ
#LetsCrackTax CA Amit Mahajan

Section Nature Payer Payee Rate Additional Note

194IB TDS on rent Individual and HUF Any resident 5% 1. No TDS if:
of immovable (Other than person Rent is < Rs 50,000 per month or part of the month
property covered u/s 194-I)
2. Time for deduction:
Can be R or NR This deduction is to be made at the time of
192
i. Credit of such rent, for the last month of the FY
192A
193 OR
the last month of tenancy, (if the property is
yay

¥:
) vacated during the year), as the case may be, to
l9UBB

the account of the payee OR

¥÷_ £60.000

lauda ii. At the time of payment thereof in cash or by

issue of cheque or draft or by any other mode,
194 F- A
60000 60000
lay EE ABC soooo 60000
1964 -

whichever is earlier.
60200 60200
1¥ 60000 60000
194 I soooo Gooooc-336,000=24000

i " "

3. Note : Deduction not to exceed rent for last month:

"
First
536000J
194IA TDS on
purchase of
Any person Any resident
person
①
1% 1. No TDS if consideration is < 50 lakhs [Actual
consideration & not the SDV]
-

immovable
property 2. If consideration is 50 lakhs or more & only part
(other payment is made = TDS is applicable on every part
than rural payment of consideration.
agricultural
land) 3. Consideration shall include all charges of the nature
of club membership fee, car parking fee, electricity
or water facility fee, maintenance fee, advance fee
or any other charges of similar nature, which are
incidental to transfer of the immovable property.

4. TAN not required

TAX DEDUCTED AT SOURCE 111

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Section Nature Payer Payee Rate Additional Note

194IC TDS on Any person Any resident 10% 1. Consideration under specified agreement u/s. 45(5A)
payment under person (not being consideration in kind)
development
agreement 194 D
- 2. 45(5A) Specified Agreement means a registered
(not in kind) agreement in which a person owning land or building or
☒
194 DA
late E

n la UEE both, agrees to allow another person to develop a real

Builder iaua →

estate project on such land or building or both

'

" '" '

5
"" M -

PK
→ 5% 3. The consideration, in this case, is a share, being land or
194 IB
building or both in such project
-

flat
-

1
I 50L -1
l9UI-¥
4. Part of the consideration may also be in cash

5. If getting covered under 194IC = Sec 194IA NOT

applicable
194J TDS on Any person (Other Any resident Refer No TDS if –

☐ professional
services
than Individual /
HUF whose TI /
GR / TO does not
exceed 1 Cr in case
person chart on a) Fees for professional services is up to Rs 30,000 p.a.
next page b) Fees for technical services upto 30,000 p.a.
c) Royalty is upto 30,000 p.a.
d) Non compete fee is upto 30,000 p.a. lot
Flo /
.

of business / 50 e) In case of Director fees - No limit

-

Lakhs in case of Note: Limit of 30,000 applied separately on professional

profession) fees, Royalty, etc. (except director fees)
1. TDS on payment BY Third Party Administrator on behalf
of insurance companies to the Hospitals – TDS u/s 194J
applicable Reason – Payment made for seeking medical
assistance – covered under ‘professional services’

2. Transfer of right to use a computer software –

ROYALTY – 194J

TAX DEDUCTED AT SOURCE 112

192 → slab rate → HPL .
1941 2% / lot . 2.4L

lot .PK 5%
192A → .
194 IB p.m
It
502
.
-

lot 1961A

2fglIÑ°f
193 →
.

1941=0 -
toy
lot .
.

Ian →

196T → 301<9 lot .

194A - lot -

DF
2-1
-

2%
194
B) 301 . 10K 2%

191313
194k →
5k - lot .

1946 -
it .

30k / 1L laura -2.5L → lot .

50L → 51
2.1 .
196M → .

194N - 1W → 2%

19h D -
15T . 15-1 -

• L -
o -
isl Mil
2%
1hr
.

2sL -

194 DA - arm
5%

20%-15 -1C
194 f- →
laced → punch .
→ val > 50L

- > low o.li

194 F- F-
o
III.
-

b-
.

19412 → zsk

( 94 µ →
15k gyp TEASE
ST ( -
.

194M . _ 194-0 - It .
#LetsCrackTax CA Amit Mahajan

IMPORTANT

Payment made for acquiring software from a RESIDENT transferor, the provisions of Sec 194J would not be
attracted

1. Software is acquired in a subsequent transfer without any modification by the transferor;

2. TDS has been deducted under section 194J on payment for any previous transfer of such software; and

3. Transferee obtains a declaration from the transferor that TDS has been so deducted along with the PAN of the
transferor.

TDS Rate u/s 194J

Particulars Rate of TDS

Amt. being paid is Fees for TECHNICAL Services 2%
(NOT being PROFESSIONAL Services)
Amt. being paid is Royalty IN THE NATURE OF 2%
Consideration for Sale, Distribution or Exhibition of Cinematographic Films(Not
all kinds of Royalty)
Where the PAYEE is engaged ONLY in the 2%
business of Operation of Call Centre

0 All other cases

0
10%

TAX DEDUCTED AT SOURCE 113

TDs
!
Done
#LetsCrackTax CA Amit Mahajan

Section Nature Payer Payee Rate Additional Note

194K TDS on Income Any person Any 10% 1. Amount on which TDS is to be deducted:-
i.r.o. Units resident Income in respect of:-
unitholder i. Units of a Mutual Fund;
"¥ Reliance § Reliance .
ii. Units from “Administrator of Specified Undertaking”;
¥
/ OR
① MF iii. Units from Specified Company
2. NO TDS if EITHER of the following are satisfied:-
i. SUCH Income is in the nature of CAPITAL GAINS; OR
'

Dives yes TDSV

pair
ii. AGGREGATE of the SUCH income < Rs. 5,000.
194LA TDS on compulsory Any person Any 10% NO TDS if consideration is upto Rs 2,50,000
acquisition of resident NO TDS if compulsory acquisition of rural agricultural land
immovable property person
194M TDS on contract
/ commission /
Individual /
HUF (other
Any
resident
o
5% - NO TDS under this section if sum or aggregate of sum paid
/ credited is upto Rs 50,00,000
brokerage / Fees than covered person
for Professional by Sec 194C, - TAN not required
Services 194H, 194J)
194N TDS on cash Banks / Co- Any person 2% of 1. TDS applicable only if payer paying sum or aggregate of
withdrawal operative sum sum in CASH in excess of Rs 1 Cr in PY from one or more
(Introduced to Banks / Post exceeding accounts maintained by payee.Under this section - TDS
discourage cash office Rs 1 Cr only on Amount in excess of 1 Crores
transactions) 2. This section not applicable if payee is Govt, Banks, Co Op
TDs

bl mil -
o
194K
Bank, Post office or any white label ATM operator or any
-

PIM Zi .

2. 5h9
zi
Ier
194 → →
I " • L
- .

4B¢ 1° guy
'
.
1
151 .

Tier 5T → .

other person may be notified by RBI

÷÷:÷m
'
← l 19419 50L ifwhdawym Ro
3. If the recipient has not furnished the ROIs for ALL the
not filed
→ '
l "
PAST 3 AYs for which limit u/s 139(1) has been expired,
who has
194 IA
'
-
say person )
13911
.

Sec
.

-3 per TMS as
" Last
for

immediately preceding the FY in which payment of the sum

.
mil
bl - . ..
o ..
-
, .

is made – TDS rates

, , .

www.x 2,001000
g- i.
→
✗ UOL
I. Ucr
→

÷ 2% - Cash withdrawn is > Rs 20 Lakhs but < 1 Cr

I Cr -

5% - Cash withdrawn is > 1 Cr

TAX DEDUCTED AT SOURCE 114

#LetsCrackTax CA Amit Mahajan

Section Nature Payer Payee Rate Additional Note

194Q Purchase of Buyer, who is Any Resident 0.1% of sum in TDS not required to be deducted under this section
✓ goods responsible for excess of 50L in respect of a transaction on which -
Where value is paying any sum to (a) tax is deductible under any of the provisions of
> 50L any resident for (Failure to this Act; and
✓
purchase of goods. furnish PAN – (b) tax is collectible under the provisions of section
.

Purchase
1)
2) Buyer→ > por Tfo Buyer – Sales / MAX 5%) 206C, other than section 206C(1H).
3)
Value→ 50L
TO / GR > 10Cr in
4) Rate
→ o.li
.

preceeding FY of
purchase of goods
194P Pension (along Notified Specified Specified Rates in force Specified banks – banking company notified by CG
with interest on Banks senior citizenAfter giving Specified Senior Citizen – Resident
✓ bank account) =
Fus effect to
.

Chap VI-A
- > 75 years of age during FY
- Having pension income (he should not be having
deductions and any other income except for interest income
87A rebate from any account maintained in the same bank)
194-O Sale E-COMMERCE E-COMMERCE 1% of gross Section not applicable:
consideration / OPERATOR who PARTICIPANT amount of sale - E-Com Participant = Individual / HUF
consideration facilitates sale of / service / - Gross Amount < Rs 5,00,000
for services goods / provision both - E-Com Participant – furnishes Aadhar / PAN
facilitated of services of
through digital E COMMERCE (Failure to
/ electronic PARTICIPANT furnish PAN –
facility MAX 5%)
195 TDS on sum Any person NR / Foreign - DTAA rate Nature of payment
payable to NR Co OR a) Interest
/ foreign co - Rates in b) Any other sum which is chargeable to tax in India
Force (except salary u/s 192, 194B,194BB, 194E, 194LB,
194LBA)

TAX DEDUCTED AT SOURCE 115

 * A 1
#LetsCrackTax
I
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1
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CA Amit Mahajan
20
117121 30L

Clarifications on Sec 194Q

¥
• Provision is applicable from 1 July 2021 – While computing Rs 50 Lakhs – we should count Rs 50 Lakhs from 1 July 2021 OR 1 April
2021? 1/04/2021

• Advance money paid by buyer - If money is paid in advance prior to 01/07/2021

NO TDS
a. a-
¥
• Purchase return by buyer – what to do with TDS? - Adjust TDS in next transaction with the seller

• In case of purchase return – Buyer did not refund but goods replaced - TDS – no adjustment
-

• o
While while computing TDS should we include the GST component?
• GST is separately shown in the invoice – exclude the GST component
• If GST is not shown separately in the invoice – TDS on the entire amount
• If amount is paid in advance – bill not generated – TDS on the entire amount

✗
• If buyer is a NR – TDS applicable?
• If permanent establishment is in India – TDS is applicable
• if permanent establishment is not in India – TDS is not applicable
Permanent Establishment - fixed place of business

• What if seller’s income is exempt – NO TDS

• What if partial income is exempt – TDS is applicable

• What if buyers company is incorporated in the current year, so how to compute last year’s turnover? - Provision is NOT APPLICABLE

TAX DEDUCTED AT SOURCE 116

#LetsCrackTax CA Amit Mahajan

Clarifications on Sec 194Q

• For a buyer, should we consider only business turnover or business and non business turnover?
Business Turnover – 8 Cr
Other activity – 4 Cr
Total – 12 Cr

Consider only business turnover

Interlinking of Sec 194Q, 206C(1H) & 194-O

Goods Goods Goods through e-commerce

194Q
> 50 Lakhs > 50 Lakhs 206C(1H) > 50 Lakhs 194-O

Buyer Seller Buyer Seller Buyer Seller

Prev Year TO > 10 Cr Prev Year TO < 10 Cr Prev Year TO < 10 Cr Prev Year TO > 10 Cr Prev Year TO > 10 Cr Prev Year TO < 10 Cr

Goods Goods through e-commerce

> 50 Lakhs 194Q > 50 Lakhs 194-O

Els
.

&
> to
or
F. & > to
or

Seiler .

Buyer

Buyer Seller Buyer Seller

Prev Year TO > 10 Cr Prev Year TO > 10 Cr Prev Year TO < 10 Cr Prev Year TO > 10 Cr

TAX DEDUCTED AT SOURCE I 94 - O > I 94 Q > 206C City 117

#LetsCrackTax CA Amit Mahajan

Section 206AB - Special provision for TDS for non-filers of income-tax return

Where TDS is required to be on any sum payable by a person to a specified person, TDS shall be deducted at the higher of the
following rates, namely
(i) 2 times the rate specified in the relevant provision of the Act; or

(ii) 2 times the rate or rates in force; or

(iii) 5%

Specified person

1. Person who has not filed the ROI for both of 2 AYs immediately prior to FY in which tax is required to be deducted, for which
the time limit of filing return of income under section 139(1) has expired; and
2. Aggregate of TDS and TCS in his case is ≥ Rs 50,000 in each of these 2 FYs

Section not applicable

Non Resident does not have a PE in India

If Sec 206AA is applicable to such specified person – Applicable rate would be HIGHER of Sec 206AA and 206AB
139lb
Similar Section is also inserted for TCS – Sec 206CCA on
time

194J •
✗ filed Ro
→ Last 2T¥

y
> +
^

☒ n
-

Agg TDs / TCS 250K

in each
^ t
Mayank offys
.

Saahil
.

nos

2×10%4 r④
→

or

TAX DEDUCTED AT SOURCE ST

118
.
→
#LetsCrackTax CA Amit Mahajan

Circular No. 23/2017: NO TDS on GST Component of Services

Section 196 - NO TDS if payee is CG / SG / RBI / Statutory Corporation / Any Mutual Fund

÷
Section 197 - Where total income or receipt of income is not liable to tax or taxable at low rates, then he can apply to AO
to issue a certificate for No deduction / lower deduction of TDS. In such case payer shall deduct TDS as per rate specified in
certificate. CETI < BEL

Section 197A - Where income (GTI) of assessee is less than Basic Exemption = Then = in case of sec 192A/ 193 / 194A/
194DA /194I / 194K, assessee can give a self declaration in form no 15G / H to Payer for non-deduction of TDS.

Under Section 197A if income (192A/ 193/ 194A / 194DA/ 194I) is more than Basic exemption but NTI (total Income) is less
than Basic exemption then sec 197 A not applicable (except Senior citizen)

Quarter TDS return – due date TCS return – due date

Due date for payment of TDS:
30 June 31 July 15 July
April to February = 7th of next month
March = 30th of April of next FY 30 September 31 Oct 15 Oct

31 December 31 Jan 15 Jan

TDS – July 2019 = before 7th of August 2019
TDS – Oct 2019 = before 7th of Nov 2019 31 March 31 May 15 May
TDS – March 2020 = before 30th of April 2020

TAX DEDUCTED AT SOURCE 119

#LetsCrackTax CA Amit Mahajan

Section 200A – Processing of TDS returns (Intimation given by department)

✓ 1. TDS return shall be processed u/s 200A & following adjustments to be made
a) Arithmetical errors in the return can be rectified
b) Incorrect claim in return
2. Intimation shall be sent to deductor specifying the amount of demand or refund.
3. Intimation shall be issued within 1 year from end of FY in which quarterly return was filed.

Sec 201 : If assessee fails to deduct TDS or after deduction, fails to pay TDS to Govt = then assessee is treated as
deemed to be ‘assessee in default’.
He shall be liable to pay interest u/s 220 & penalty u/s 221.

Exception (where assessee is deemed to be ‘assessee in default’ even though payer fails to deduct TDS)
- Such payee has furnished his ROI u/s 139
- He has taken into account such sum for computing income in such return of income; and
- He has paid the tax due on the income declared by him in such return of income, and
- Person furnishes a certificate to this effect from an accountant in such form as maybe prescribed

Late deduction: Interest @ 1% per month Late payment: Interest @ 1.5% per month or
or part of a month on amount of TDS from part of a month on amount of TDS from the date
Section 201(1A): the date of tax was deductible till the on which tax was deducted till date on which such
Late deduction / date of tax actually deducted. tax is actually paid.
late payment of
TDS
Section 234E : Fees for default in furnishing TDS/TCS return.
Fees is payable @ 200 per day for every day during which the default continues
Fees cannot be more than amount of TDS/TCS
TDs return
3*0
0
Dios
01 -
31/7/23 Fees =

Actually filed 1/1/24

TAX DEDUCTED AT SOURCE
-

120
TDs amount
- ask
#LetsCrackTax CA Amit Mahajan

Tax Collected at Source

Nature of Goods TCS Rate Tcs applicable on

☐ Alcoholic liquor for human consumption 1% t

'

manry → @
Retailer
2) Tendu leaves 5% .
=

3) Timber and any other forest product 2.5%

Scrap 1%
÷ Minerals being coal, ignite or iron ore 1%

6) Motor vehicle (value > Rs 10,00,000) 1% Fcs → from

mer

Special notes:

Éoo
1. TCS in case of motor vehicle is applicable only if consideration is more than Rs 10,00,000

2. TCS not applicable if buyer is Government, embassies, consulates, high commissioner institutions notified under united
Nations Act 1947.

3. TCS also applies in case of lease or license of parking lot, toll plaza, mine & quarry = TCS Rate is 2%
- -

4. TCS in case of goods prescribed on point 1 to 5 – NOT applicable if goods purchased for personal consumption
-

5. Sec 206C(1A) - NO TCS – if buyer is Resident and furnishes a declaration that such goods used in manufacturing of any
product / in power generation BUT buyer purchasing goods TDS can be applicable – YES – Sec 194Q

TAX DEDUCTED AT SOURCE 121

#LetsCrackTax CA Amit Mahajan

TCS lM°orAmendmentm)
Section 206C(1G) – Overseas remittance / an overseas tour package –
For the simplified language - Please watch YT video on CA Amit Mahajan / Telegram Channel Tax notes and Guidance
Rate - 5% on:-

TCS on -
a) Amount received BY an Authorised Dealer for remittance OUT OF INDIA where such amount is received FROM a Buyer under
the Liberalised Remittance Scheme of the RBI OR
b) Amount received BY a Seller i.r.o. an Overseas Tour Programme Package purchased by Buyer

Note:-
• TCS Rate shall be 0.5% if the amount Remitted OUT OF INDIA by the buyer IS a “Loan obtained from a “Financial Institution
referred u/s 80E” for pursuing ANY education.

Loan obtained for education 0.5%

purpose

> 7 Lakhs
Other purpose 5%
Remittance

≤ 7 Lakhs NIL

For attracting TCS u/s 206C(1G), the BUYER has to be any person OTHER THAN the following:
a. A person who is LIABLE to deduct TDS under any section AND who HAS DEDUCTED such TDS; OR
b. CG, SG, embassy, high commission, legation, commission, consulate & the trade representation of a foreign state, a club;
c. Local Authority as defined in Explanation to Section 10(20); OR
d. Any OTHER person that CG may notify in Off. Gazette for this purpose.

TAX DEDUCTED AT SOURCE 122

#LetsCrackTax CA Amit Mahajan

Section 206C(1H) - Purchase of goods

TCS is collected at following rates u/s 206C(1H):-

At 0.1% on Consideration for Sale of ANY Goods (not services)

However, this section is NOT applicable in case the Consideration received is against:-
a) Export of Goods OUT of India; OR
b) Sales of Goods covered u/s 206C(1)/(1F)/(1G).

Note:-
If the Buyer does NOT furnish his PAN/Aadhaar Number to the Seller, the Seller shall collect TCS at HIGHER of the following
2 rates:-
1. Twice the rate specified in THIS Sub-Section; AND
2. 1%

NOTE - To attract TCS provisions, Seller MEANS a person whose “total sales, gross receipts or turnover” from the BUSINESS
carried on by him EXCEED Rs. 10 Cr. during the FY immediately PRECEDING the “FY in which the sale of goods is carried out”

For attracting TCS u/s 206C(1H), the BUYER has to be any person OTHER THAN the following:-
1. A person who is LIABLE to deduct TDS under any section AND who HAS DEDUCTED such TDS; OR
2. CG, SG, embassy, high commission, legation, commission, consulate & the trade representation of a foreign state, a club;
3. Local Authority as defined in Explanation to Section 10(20);
4. A person IMPORTING goods into India; OR
5. Any OTHER person that CG may notify in Off. Gazette for this purpose.

TAX DEDUCTED AT SOURCE 123

#LetsCrackTax CA Amit Mahajan

✓#
Section 206CC - Requirement to furnish Permanent Account number by collectee

Any person paying any sum, on which TCS is collectible - shall furnish his PAN to the Collector. Pooja .

T
If fails to furnish PAN to the collector – he shall collect taxes at the higher of the following rates: 2 ✗ Rate
1. 2 times the rate specified in the Act; OR or
2. 5%
g- -1
.

- Declaration u/s 206C(1A) – invalid unless PAN is furnished – then collect tax as per provision mentioned above
- Certificate for lower collection of TCS shall not be granted unless the application made under that section contains the PAN
of the applicant
- If PAN is invalid – treated as if PAN is not furnished

Section NOT APPLICABLE to - NR who does not have permanent establishment in India

i
Section 206CCA - Special provision for collection of tax at source for non-filers of income-tax return

Where TCS is required to be collected Specified person Not Applicable

on any sum received by a person from a 1. Person who has not filed the ROI for
✓
specified person, the tax shall be collected both of 2 AYs immediately prior to FY in NR
at the higher of the following two rates: which tax is required to be collected, for NOT having
1. 2 times the rate specified in the Act; OR which the time limit of filing return of PE in India
2. 5% income under section 139(1) has expired;
If Sec 206CC is also applicable – Take higher and ✓
rate between Sec 206CC and Sec 206CCA 2. Aggregate of TDS and TCS in his case is
≥ Rs 50,000 in each of these 2 FYs

2 ✗ Rate

5
for '

Ii
TAX DEDUCTED AT SOURCE 124
#LetsCrackTax CA Amit Mahajan

Advance Tax

• Advance tax means tax paid in the financial year immediately preceding the A.Y. (i.e.PY)
• Advance shall be calculated by estimating the current year income then applying tax rates. TDS/TCS & MAT credit shall
be deducted to arrive at Advance tax liability.

• Assessee is required to pay Advance tax if his liability for advance tax is 10,000 or more.
|BlP
-4-5
-

• Exceptions : Resident Senior citizen not having income under the head "PGBP"
r
Resident Sr citizen

Due dates
£2s L

Due dates Amount of advance tax

e@ Upto 15th June of PY Upto 15% of advance tax liability

Upto 15th September of PY Upto 45% of advance tax liability

Upto 15th December of PY Upto 75% of advance tax liability

Upto 15th March of PY Upto 100% of advance tax liability

Note – If assessee opts for Sec 44AD / ADA = Due date of advance tax is 15th
=
March of PY
=

Any amount paid by way of advance tax on or before 31st March shall also be
treated as advance tax paid during each financial year on or before 15th March.

TAX DEDUCTED AT SOURCE 125

Meaning collected
by the

Govt
→ Tax

In advance
←

÷#yii -1
-
-
- -

"
3117124 .

2/4/23
.

12L

F- 4 FY
Earn Income → .

A -4 FY
Pay tax
.

- .
 start of Estimate Advance
liability
tax
-

the FU . → the Total Tax

↳ Tax
component

during
t
the financial year ✓ 310,000

2=10,001000

2=11001--01 Assumed )
Tax -

l#-
1
!
1 I

ce Q2 93 94

15/9 / 15/121 15131

15/61 -
-
-
-

100-1 .

*%
45 " '

- o
j g- 1. a.
• o
/ g- .

F- 75,000
£45000 151000
f) I
C- 32=151--0
e) g- isooo 30,0-0
ooo c- ) F
C-) I 30 ,
301000
£¥ C- 3 £
g¥e
÷ - F 25,000

2--152 MTI 15L

What if at the end of FY total income -

my Tax Liab , -
sz →
including
HEC .

Assumed Tax Idb - II. 5L .

FIL - Advance Tax C- STDS deducted -

collected
-

F5ok→sIEasIIa× ↳ Tcs

tax ( Il )
f) Advance

Tax iiab 50,000

+ Int 1
Tax liab #
Estimated Tax → 2=102 Actual Income - 2cm

[ FU 23 -
M ] TDS deducted → E lol

UTI → 2W
I 1 I 1
Q1 Q2 Q3 QU NTI → 2A .

[ Apr
-

Jane
] [Jae Sept] [oct -
Dec ] [Jan - Mart ]
69,511750
-
-

Tax →
t
I t y 15131
Due Dale :
15/6/23 Due Date 15/9/23 Due Date :/ 51121 -
Due Date :
-

f) Taxatreadyddded
t (1010010-0)
tr tr •
TDs .

f Iggy .

45T 75T (37122/550)

15T
'

Advance tax
.
.

00
t 10,00 ,
°O°
7- ' ☐
F- 1,501000 £415s , ooo FÉbiiy29•
'

( 1,5g ) , ooo

(2--1,521000) ( 1150 /
°O°
)
(3,00*00)
É
-
45,311¥ csiooiooo)

215¥
←

=I- lol
Business Icr TDs

5,581383/-2
→
.
→

if 15/6/23
→ 15T .
→

10L - TDs = FIL

Bank FD →

15/9/23 45-1 16,7-5,148 f) 5,581383

2)
→ . →

It -10kt
(11,1617-65)
GTI 4166,875
.

= + surcharge .

NTI II. locr .

913-5158,383-111161765
=

* 793ft
'
15/12/23 7--7 27,91
3)
,
-

Hit
- .

2- 5h
Tax → o -

+ cess
5h 12500 11,161765
2. si
-
→

Tq✗37,22r550-
1.00100°
5L - 10L
1111617065
58,383
] 15/3/24
-

301001000 -5 ,
L -
1. tour 4 → foot . →
37,221550 11 16,765

[2-9,30/-637]
-
,

311121500 →
#LetsCrackTax
Cbrne 12:25 PM
CA Amit Mahajan

Section 234A – Interest for delay in return filing Section 234C – Deferment of Advance Tax instalments

Tax as per ROI Rate Period Rate 3 months for all

installments except
(After (1% per month (From next (1% per month Deferred last installment[For
adjustment of or part of the day after due or part of the amount last instalment,
TDS / TCS / month) date of ROI month) Interest is
Advance Tax / till actual date applicable always
Relief u/s 90) / of filing for 1 month]
Dedn as per 91 /
MAT credit
Margin of Safety

No interest u/s 234C shall be levied if assessee paid

Section 234B – Interest for non / short payment of advance advance tax upto 12% in the first instalment, upto 36% in
tax 2nd instalment

Rate Period In case assessee is unable to estimate his income for eg.
Advance Tax Winning from lottery / capital gains – Then how to pay
(1% per (From 1st advance Tax?
short paid as per
month or April of AY till
ROI
part of the actual date of If assessee is not able to estimate capital gains and winnings or
month) payment) income under PGBP accrues first time, Dividend u/s 115BBDA
THEN advance tax on such income shall be paid in remaining
instalment by assessee after receipt of such income. Winning
in the month of July – consider that in the estimated income
Note – This interest is not applicable if assessee has paid of Q2 and pay tax.If no instalment is due [income recd. during
90% or more advance tax payable 16/3 to 31/3] then Advance tax shall be paid upto 31/3 of P.Y.

(Refer question on 234A / B/ C on my YouTube channel CA Amit

Mahajan) 6

TAX DEDUCTED AT SOURCE 126

Mr. Amit is earning Floro ,ooo from Providing I
]tntUlS234A- -
Delay in ]
II Interest 41s 234C
applicable is
consultancy services
filing
151
where TDs .

1201 .

He earned interest income of 2=21 From Bank FD .

Tax liability 2=591400 .

TDs
applicable is 151 -

My f- Qtr i. Tax 1- be paid Actually paid shortfall Inti

, my GAT ✗ , y ✗
= ,

p.m
of
paid during
87<3
Total Advance follows 15% 8910 6000 2910
Tax the Fy is a
: months 1

2910×1 i. ✗ 3

① 15/6/23 →
I 600° delay .

[is / 6-1519]

② 15/9/23 → I 7000
✗ 5 months .
2 45% 26730 13000 13730 412

2--13/400 ✗ I -1
( 6K -17k) [13730×11×3]
.

=
F 331°"
③ 15/12/23 -
[1519-15112]

Efts
23 Uy
CFY
-

Hit
④ 15/3/24 → I
46,0-0 Nil "i '
µ zg = 3 Fri .

cry 550
µ
-

Amit filed his ROI → 12 Dec 24

134
46° " ' " °°
Due date for
filing ROI - 31 Jill M .

If lnteres.tw/s234B-
4 10%59400 Busoni ✗ 1 -

Amit paid Income -

tax -12 Dec 2h .

calculate Intuits 234A / BIC -

short payment of Advance Tax

#°
computation of tax liability Short from
TDS
Int =
✗ It P.MX i April
payment
-

PCEBP 10100,000
or of AY
1- ( S
•

of past till
11=05
2,021000
•

Advance TAX taxis

UTI 12,00 ,
- -
a
Adv Tg ✗
Nil paid .

f) VI Adedn
gnyzgya.gg
-

NTI 121001000 IT ✗ 9 month ]

g- 13,4 ✗ .
,
=
g. µ , ,µ,
Tax liability 1172,500

+ HEC
=
Instant
Tax 11791400

f) Taxes already paid

•
TDS ( 1,2s ,
-00 )
59,400

.
Advance tax (4610-0)
Self Asst Tax 131400