Guide to Tax Deduction at Source & Tax Collection at Source

by Dr. Girish Ahuja & Dr. Ravi Gupta

Preface to the Twenty-second Edition	v
List of Circulars	ix
Table of Cases	xiii

Division I

CR-1 Amendment brought in TDS & TCS provisions by the Finance Act, 2025	3
CR-2 Rates of TDS & TCS at a glance	7
CR-3 Time & Mode of Payment of TDS & TCS at a glance	25
CR-4 Form No. and time-limit of Issue of TDS & TCS Certificates at a glance	28
CR-5 Statement of TDS & TCS at a glance	30
CR-6 Withholding Tax rates as per IT Act vis a vis Tax Treaties at a glance	33
CR-7 Tax rates as per IT Act vis a vis Tax Treaties	43

Division II

Chapter 1 System of Collection of Tax [Sections 190 and 191]	55
Chapter 2 TDS from Salary [Section 192]	65
Chapter 3 How to Estimate Income under the Head “Salaries� for Purposes of TDS [Sections 15 to 17]	109
Chapter 4 TDS from Payment of Accumulated Balance due to an Employee from Recognised Provident Fund [Section 192A]	194
Chapter 5 TDS from Interest on Securities [Section 193]	202
Chapter 6 TDS from Dividends [Section 194]	232
Chapter 7 TDS from Interest other than Interest on Securities [Section 194A]	239
Chapter 8 TDS from Winnings from Lottery or Crossword Puzzle, etc. [Section 194B]	268
Chapter 9 TDS from Winnings from online games [Sections 194BA]	278
Chapter 10 TDS from Winnings from Horse Races [Section 194BB]	288
Chapter 11 TDS from Payments to Contractor (Including Sub-contractor) [Section 194C]	294
Chapter 12 TDS from Insurance Commission [Section 194D]	339
Chapter 13 TDS from Payment in Respect of Life Insurance Policy [Section 194DA]	347
Chapter 14 TDS from Payments to Non-resident Sportsmen or Entertainer or Sports Associations [Section 194E]	355
Chapter 15 TDS from Payments in Respect of Deposit under National Savings Scheme, etc. [Section 194EE]	362
Chapter 16 TDS from Commission, etc., on Sale of Lottery Tickets [Section 194G]	369
Chapter 17 TDS from Commission and Brokerage [Section 194H]	377
Chapter 18 TDS from Rent [Section 194-I]	395
Chapter 19 TDS on Payment on Transfer of Certain Immovable Property [Section 194-IA]	422
Chapter 20 TDS from payment of rent by certain Individuals or HUF [Section 194-IB]	430
Chapter 21 TDS from Payment under Specified Agreement Referred to in Section 45(5A) [Section 194-IC]	437
Chapter 22 TDS from Fees for Professional or Technical Services or Royalty or Non Compete Fee [Section 194J]	443
Chapter 23 TDS from Income in respect of units [Section 194K]	467
Chapter 24 TDS from Payment of Compensation on Acquisition of Certain Immovable Property [Section 194LA]	475
25 TDS from Income by Way of Interest from Infrastructure Debt Fund [Section 194LB]	485
Chapter 26 Distributed Income of the Nature Referred to in Section 10(23FC) and 10(23FCA) Payable by Business Trust to Unit Holder [Section 194LBA]	490
Chapter 27 TDS from Income in Respect of Units of Investment Fund [Section 194LBB]	496
Chapter 28 TDS from Income in Respect of Investment in Securitisation Trust [Section 194LBC]	503
Chapter 29 TDS from Income by Way of Interest from Indian Company or the Business Trust [Section 194LC]	509
Chapter 30 TDS on Income by Way of Interest on Certain Bonds and Government Securities [Section 194LD]	516
Chapter 31 TDS from Payment of certain sums by certain individuals or Hindu undivided family [Section 194M]	524
Chapter 32 TDS on Payment of certain amounts in cash [Section 194N]	529
Chapter 33 TDS from Payment of Certain Sums by E-commerce Operator to E-commerce Participant [Section 194-O]	538
Chapter 34 TDS in case of specified senior citizen [Section 194P]	555
Chapter 35 TDS on Payment of Certain Sum for Purchase of Goods [Section 194-Q]	559
Chapter 36 TDS on Benefit of Perquisite in Respect of Business or Profession [Section 194-R]	575
Chapter 37 TDS on Payment on Transfer of Virtual Digital Asset [Section 194-S]	590
Chapter 38 Payments to partners of Firms [Section 194T]	602
Chapter 39 TDS from Payments (other than Salary) to Non-residents and Foreign Company [Sections 195, 196A, 196B, 196C and 196D]	609
Chapter 40 Other Provisions Relating to TDS [Sections 195A to 206AB]	672
Chapter 41 Tax Collection at Source [Sections 206C, 206CC and 206CCA]	720
Chapter 42 Statement/Return of Tax Deducted/Collected at Source [Sections 200(3), 206A, 206C(3), 206C(3B), 206C(5) and 206C(5A) to 206C(5D), 206CB]	755
Chapter 43 Consequences of Defaults [Sections 201, 206C(6) to (8), 234E, 271C, 271CA, 271H, 272A(2), 272BB, 276B and 276BB]	773
Chapter 44 Equalisation Levy	805
Chapter 45 Advance Payment of Tax [Sections 207-211, 218 and 219]	825
Chapter 46 Refunds [Sections 237 to 242 and 245]	845
Appendix 1 Relevant Rules	865
Appendix 2 Recent Judicial Decisions	902
Appendix 3 Relevant Circulars and Notifications	975
Appendix 4 Relevant Forms	1237

About the Author

Dr. Girish Ahuja & Dr. Ravi Gupta

Dr. Girish Ahuja did his graduation and post-graduation from Shri Ram College of Commerce, Delhi and was a position holder. He was awarded a Ph.D. degree by Faculty of Management Studies (FMS), Delhi University. He is a Fellow of the Institute of Chartered Accountant of India (ICAI) and was a rank holder of both Intermediate and Final examinations of the Institute. He had been nominated by the Government of India as a member of the Task Force for redrafting the Income-tax Act and New Income-tax Law. He is also on the Board of Directors of many reputed companies and has a vast and rich experience in the field of finance and taxation. He has been nominated by the Government of Directors of UNITECH LTD with the approval of the Supreme Court to Board and was also been nominated by the Govt. of India as Independent Director of the Central Board of State Bank of India. Dr. Ahuja is a author of various books on Direct Taxation and he has addressed more than 5000 seminars organized by the ICAI, ICSI, ICWAI, Chambers of Commerce.

Dr. Ravi Gupta did his graduation and post-graduation from Shri Ram College of Commerce. Thereafter, he did LL.B. from Delhi University and MBA (Finance) from Faculty of Management Studies, Delhi. He has been awarded a Ph.D. degree in International Finance by the Delhi University. He had been a faculty member at Shri Ram College of Commerce (Delhi University). He is an advocate and leading consultant at Delhi NCR and also has vast practical experience in handling tax matters of trade and industry. He has been appointed by the Government of India as a member of the Committee consututed for Simplification of Income Tax Act. He is also a Central Council member of ICAI (Government of India Nominee) and on the Board of various reputed companies. He is a co-author of various books on Income-tax. He has addressed more than 3000 seminars on Direct Taxes organized by ICAI, Chambers of Commerce, Universities, etc.

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