Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Tds knowledge

UMtest (Test) (29 Points)

05 April 2012

Hello,

What is mean by TDS. I want to full details about TDS.

Reply
Follow
Share

8 Replies

valji (Accounts manager-MBA) (2150 Points)
Replied 05 April 2012

TAX DEDUCTED AT SOURCE

GO TO INCOME TAX SITE

YOU CAN GET BFULL DETAILS

Upgrade to CAclubindia Pro. Subscribe Now!

prateek aanchalia (CA) (859 Points)
Replied 05 April 2012

TDS means Tax deducate at sources for more detail refer following link.. https://law.incometaxindia.gov.in/DIT/Income-tax-acts.aspx see page no 24 & 25 on that page sec 191 to 205 refer.. u get full detail..

Sumit Middha (Head (Fin.& A/c) M.COM M.A.(Eco) MBA CS Final) (2453 Points)
Replied 05 April 2012

Originally posted by : prateek aanchalia
	TDS means Tax deducate at sources for more detail refer following link.. https://law.incometaxindia.gov.in/DIT/Income-tax-acts.aspx see page no 24 & 25 on that page sec 191 to 205 refer.. u get full detail..

swar jh (CA final CWA) (39 Points)
Replied 05 April 2012

In simple terms, TDS is the amount of tax getting deducted from the person (Employee/Deductee) by the person paying (Employer/Deductor). National Securities Depository Ltd. (NSDL) after having modernised the settlement system in the Indian Capital Market by pioneering scripless settlement is now in the process of establishing a nationwide Tax Information Network (TIN) on behalf of the Income Tax Department (ITD). This is designed to make the tax administration more effective, furnishing of returns convenient, reduce compliance cost and bring greater transparency.

NSDL will be the primary agency responsible for the design, implementation and maintenance of TIN as per the requirements of ITD.

Deductor

Under the process of TDS, Deductor is a person/company who is liable to deduct the Tax at source, from the payment being made to the party. Deductor is also termed as Employer in cases where the payments are under Salaries.

Deductee

Deductee is the person, from whom the tax is being deducted or accrued for deduction. Depending on the nature of the deduction being made, deductees and respective submission forms are categorized to 3 types:

Salaries: In case of salaries, the deductee is termed as an Employee. All the information of deductions and payments in this category should be submitted in Form 24Q to the government.
Non-Salaries - Resident: In case of non-salaries and the payment is made to a resident in India, the deductee is termed as a Deductee or a Party. All the information of deductions and payments in this category should be submitted in Form 26Q to the government.
Non-Salaries – Nonresident: In case of non-salaries and the payment is made to a non-resident of India, the deductee is termed as a Deductee or a Party. All the information of deductions and payments in this category should be submitted in Form 27Q to the government.

TDS Certificates

A tax deductor is also required to issue TDS certificate to the deductee within specified timed under section 203 of the I T Act. The certification from the deductor, for the deduction and payment of the respective TDS amount to the bank, issued to the deductee is a TDS certificate.

The deductee should produce the details of this certificate, during the regular assessment of income tax, to adjust the amount of TDS against the Tax payable by the Deductee [assessee].

Types of TDS certificates

Salaries - Form 16: In case of Salaries, the certificate should be issued in FORM 16 containing the Tax computation details and the Tax deducted & Paid details. This refers to the details submitted over Form 24Q.

Non-salaries - Form 16A: In case of Non-Salaries, the certificate should be issued in FORM 16A containing the Tax deducted & Paid details. Separate certificates should be prepared for each Section [nature of payment]. This refers to the details submitted over Form 26Q and 27Q.

TDS Certificates Form 16A for Financial Year 2011-12 For the following categories of deductors, it is mandatory to download Form 16A from TIN Web Site and issue such downloaded certificates to deductees

Companies
Banks
Co-operative society engaged in banking business

For other deductors, it is optional to download Form 16A from TIN Web site. Such downloaded TDS certificate will have a unique TDS Certificate Number This procedure is applicable for all deductions made on or after 01-04-2011

TDS in itself a vast subject for more info u can visit various sites

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 06 April 2012

Yes.Good written above....

Upgrade to CAclubindia Pro. Subscribe Now!

Sumit Middha (Head (Fin.& A/c) M.COM M.A.(Eco) MBA CS Final) (2453 Points)
Replied 06 April 2012

Originally posted by : swarnika
	In simple terms, TDS is the amount of tax getting deducted from the person (Employee/Deductee) by the person paying (Employer/Deductor). National Securities Depository Ltd. (NSDL) after having modernised the settlement system in the Indian Capital Market by pioneering scripless settlement is now in the process of establishing a nationwide Tax Information Network (TIN) on behalf of the Income Tax Department (ITD). This is designed to make the tax administration more effective, furnishing of returns convenient, reduce compliance cost and bring greater transparency. NSDL will be the primary agency responsible for the design, implementation and maintenance of TIN as per the requirements of ITD. Deductor Under the process of TDS, Deductor is a person/company who is liable to deduct the Tax at source, from the payment being made to the party. Deductor is also termed as Employer in cases where the payments are under Salaries. Deductee Deductee is the person, from whom the tax is being deducted or accrued for deduction. Depending on the nature of the deduction being made, deductees and respective submission forms are categorized to 3 types: Salaries: In case of salaries, the deductee is termed as an Employee. All the information of deductions and payments in this category should be submitted in Form 24Q to the government. Non-Salaries - Resident: In case of non-salaries and the payment is made to a resident in India, the deductee is termed as a Deductee or a Party. All the information of deductions and payments in this category should be submitted in Form 26Q to the government. Non-Salaries – Nonresident: In case of non-salaries and the payment is made to a non-resident of India, the deductee is termed as a Deductee or a Party. All the information of deductions and payments in this category should be submitted in Form 27Q to the government. TDS Certificates A tax deductor is also required to issue TDS certificate to the deductee within specified timed under section 203 of the I T Act. The certification from the deductor, for the deduction and payment of the respective TDS amount to the bank, issued to the deductee is a TDS certificate. The deductee should produce the details of this certificate, during the regular assessment of income tax, to adjust the amount of TDS against the Tax payable by the Deductee [assessee]. Types of TDS certificates Salaries - Form 16: In case of Salaries, the certificate should be issued in FORM 16 containing the Tax computation details and the Tax deducted & Paid details. This refers to the details submitted over Form 24Q. Non-salaries - Form 16A: In case of Non-Salaries, the certificate should be issued in FORM 16A containing the Tax deducted & Paid details. Separate certificates should be prepared for each Section [nature of payment]. This refers to the details submitted over Form 26Q and 27Q. TDS Certificates Form 16A for Financial Year 2011-12 For the following categories of deductors, it is mandatory to download Form 16A from TIN Web Site and issue such downloaded certificates to deductees Companies Banks Co-operative society engaged in banking business For other deductors, it is optional to download Form 16A from TIN Web site. Such downloaded TDS certificate will have a unique TDS Certificate Number This procedure is applicable for all deductions made on or after 01-04-2011 TDS in itself a vast subject for more info u can visit various sites

Mithun Patel (SEZ Executive) (43 Points)
Replied 07 April 2012

Tds Rates for financial year 2011-12 and assessment year 2012-13 is given in TDS RATE chart Below.After that TDS rate for financial year 2010-11 and assessment year 2011-12 is given
192 Salaries 193 Interest on Securities,194 Deemed dividend u/s.2(22)(e) Dividends other than listed companies,194A Interest other than Int on securities (by Bank),194A Interest other than Int. on securities (By others),194B Lottery / Cross Word Puzzle,194BB Winnings from Horse Race,194C(1) Contracts,194C(2) Sub-contracts/ Advertisements,194D Insurance Commission,194EE Payments out of deposits under NSS,194F Repurchase of units by MF/UTI,194G Commission on sale of lottery tickets,194H Commission or Brokerage,194I Rent (Land & building),Rent (P & M , Equipment, furniture & fittings),194J Professional/Technical charges/Royalty & Non-compete fees,194LA Compensation on acquisition of immovable property,195/196B/196C/196D/ 196E Payment to non-residents

Download TDS rates fy 2011-12 ay 12-13 with due dates & note from here

CA Rakesh Goenka (CA & CS) (872 Points)
Replied 07 April 2012

TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account. It is similar to "pay as you earn" scheme also known as Withholding Tax in many other countries, one of the countries is USA. The concept of TDS envisages the principle of "pay as you earn". It facilitates sharing of responsibility of tax collection between the deductor and the tax administration. It ensures regular inflow of cash resources to the Government. It acts as a powerful instrument to prevent tax evasion as well as expands the tax net.

Who shall deduct tax at source?

Every person responsible for making payment of nature covered by TDS provisions of Income Tax Act shall be responsible to deduct tax.

However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 40 lakh or Rs. 10 lakh respectively (the limits will be Rs.60 Lakh or Rs. 15 Lakh respectively w.e.f. 01.07.2010) in previous year, he is required to deduct tax at source.

These persons are mainly:

- Principal Officer of a company for TDS purpose including the employer in case of private employment or an employee making payment on behalf of the employer.

- DDO (Drawing & Disbursing Officer), In case of Govt. Office any officer designated as such.

- In the case of "interest on securities" other than payments made by or on behalf of the Central govt. or the State Government, it is the local authority, corporation or company, including the Principal Officer thereof.

Such person is called Deductor while the person from whom the tax is deducted is called Deductee.

Tax must be deducted at the time of payment in cash or cheque or credit to the payee's account whichever is earlier. Credit to payable account or suspense account is also considered to be credit to payee's account and TDS must be made at the time of such credit.