TDS Rates
Applicable for AY 2010-11 (FY 2009-10)
1. 194-I: Rental Payments
a. Earlier rates:
Plant and Machinery = 10%
Land or building or furniture or fittings to Individual/HUF = 15%
Land or building or furniture or fittings to Others = 20%
b. Revised Rates:
Plant and Machinery = 2%
Land or building or furniture or fittings to anyone = 10%
2. 194-C: Contracts
a. Earlier rates:
Contracts = 2%
Sub-Contracts = 1%
Advertisement Contracts = 1%
b. Revised Rates:
Contracts to Individuals/HUF = 1%
Contracts to others = 2%
Surcharge and Cess
1. No surcharge or Cess is applicable for TDS. Only the specified TDS rates should be considered for deduction
2. Applicable for AY 2010-11 (FY 2009-10).
Payment to Transporters:
1. For any Transporters, if they Provide the PAN number, the TDS on contract payments is NIL.
2. But, if they do not provide the PAN during the payment, 1% TDS has to be made for Individuals/HUF and at 2% for others.
3. Payments to transporters without deducting TDS (as they have quoted PAN) should be reported by Deductor with PAN details
to the Income Tax Department in the prescribed format.
4. Applicable for AY 2010-11 (FY 2009-10).
Compulsory PAN (Section 206AA)
1. It is mandatory to quote PAN in all correspondence, bills and vouchers exchanged between Deductor and deductee.
2. TDS shall be made at a flat rate of 20% (or actual rate, whichever is higher) for any payments, where assessee has not
quoted the PAN during the payment.
a. This is applicable even in case where assessee gives Form 15G/15H u/s 197A.
b. This is also applicable for Non resident Payments.
3. Assessing officer shall not rise the letter for lower/no deduction, If assessee doesn’t quote a PAN.
4. Applicable for AY 2011-12 (FY 2010-11). Means the payments made on or after 01st April 2010.
TDS reconciliation (Section 200A)
1. A new section 200A is introduced.
2. TDS return filed by the deductor will be processed by the following way:
a. TDS deductible will be computed on the basis of data in TDS statement, after adjusting any arithmetic error or an
incorrect claim.
b. The interest, if any, shall be computed on the basis of the sums deductible on the basis of data in TDS statement.
c. Any amount payable by / refund to Deductor shall be determined.
d. Intimation shall be sent to Deductor on Amount payable / refundable.
e. The amount refundable, if any shall be granted to Deductor.
TDS returns
1. Currently returns has to be filed Quarterly in Form 24Q/26Q/27Q/27EQ
2. Currently government is not allowed to decide the Periodicity of TDS returns, as the power is limited only for structure
of forms and the manner.
3. In order to provide administrative flexibility in deciding the periodicity of such TDS related statements, the existing
provisions are modified, so as to allow the Government to prescribe periodicity of such TDS statements besides prescribing
their form and manner.
4. Applicable from 01st October 2009.
Computerized processing of TDS returns
1. Currently every TDS return involves manual-cum-computerized processing inside the department.
2. To make the process efficient, department will computerize whole process, where statements regard to TDS will be
processed.
a. This will be on the same lines, how IT returns processing has been computerized in Income Tax Department.
b. This processing will allow manual interference for
A. Any arithmetical error in the statement.
B. An incorrect claim, if such incorrect claim is apparent from any information in the statement, for example, in respect
of rate of deduction of tax at source where such rate is not in accordance with the provisions of the Act.
c. A Centralized Processing Center may be established in this regard.
d. Applicable for AY 2011-12 (FY 2010-11).
Posts Tagged ‘eTDS filing’
Budget 2009-10: TDS changes
August 7th, 2009Basics about eTDS / eTCS
July 17th, 2009Annual e-TDS/TCS return is the TDS return under section 206 of the Income Tax Act (prepared in Form Nos. 24, 26 or 27) or TCS return under section 206C of the Income Tax Act (prepared in Form No. 27E), which is prepared in electronic media as per prescribed data structure. Such returns furnished in a CD/floppy should be accompanied by a signed verification in Form No. 27A in case of Annual TDS returns or Form No. 27B in case of Annual TCS return.
TDS/TCS returns filed in electronic form as per section 200(3)/206C, as amended by Finance Act, 2005, are quarterly TDS/TCS statements. As per the Income Tax Act, these quarterly statements are required to be furnished from FY 2005-06 onwards. The forms used for quarterly e-TDS statements are Form Nos. 24Q, 26Q and 27Q and for quarterly e-TCS statement is Form No. 27EQ. These statements filed in CD/floppy should be accompanied by a signed verification in Form No. 27A in case of both e-TDS/TCS statements.
As per Income Tax Act, 1961, all corporate and government deductors/collectors are compulsorily required to file their TDS/TCS returns on electronic media (i.e. e-TDS/TCS returns). However, deductors/collectors other than corporate/government can file either in physical or in electronic form.
An e-TDS return should be filed under Section 206 of the Income Tax Act in accordance with the scheme dated August 26, 2003 for electronic filing of TDS return notified by the Central Board of Direct Taxes (CBDT) for this purpose. CBDT Circular No. 8 dated September 19, 2003 may also be referred.
An e-TCS return should be filed under Section 206C of the Income Tax Act in accordance with the scheme dated March 30, 2005 for electronic filing of TCS return notified by the CBDT for this purpose.
As per section 200(3)/206C, as amended by Finance Act 2005, deductors/collectors are required to file quarterly TDS/TCS statements from FY 2005-06 onwards.
CBDT has appointed National Securities Depository Limited, (NSDL), Mumbai, as e-TDS/TCS Intermediary. NSDL has established TIN Facilitation Centres (TIN-FCs) across the country to facilitate deductors/collectors file their e-TDS/TCS returns.
Due dates for filing quarterly TDS Returns
July 5th, 2009| Quarter | Due Date | Due Date for 27 Q |
| April to June | July 15 | 14 July |
| July to September | October 15 | 14 October |
| October to December | January 15 | 14 January |
| January to March | June 15 | 14 June |
General points to remember for filing eTDS / eTCS returns
June 8th, 20091. Each e-TDS return file (Form 24, 26 or 27) should be in a separate CD/floppy. Also, each e-TDS return file should be in one CD/floppy. It should not span across multiple floppies. In case the size of an e-TDS return file exceeds the capacity of one floppy, it should be furnished on a CD.
2. Each e-TDS return file should be accompanied by a duly filled and signed (by an authorized signatory) Form 27A in physical form.
3. Label should be affixed on each CD/floppy mentioning name of the deductor, his TAN, Form no. (24, 26 or 27) and period to which the return pertains.
4. There should not be any overwriting / striking on Form 27A. If there is any, then the same should be ratified by an authorized signatory.
5. No bank challan, copy of TDS certificate should be furnished along with e-TDS return file.
6. In case of Form 26 and 27, deductor need not furnish physical copies of certificates of no deduction or lower deduction of TDS received from deductees.
7. In case of Form 24 deductor should furnish physical copies of certificates of ‘no deduction or deduction of TDS at lower rate’, if any, received from deductees.
8. e-TDS return file should contain TAN of the deductor without which the return will not be accepted.
9. In case the e-TDS return file is in a compressed format, it should be compressed using WinZip 8.1 or ZipItFast 3.0 compression utility only to ensure quick and smooth acceptance of the file.
1. Each e-TDS return file (Form 24, 26 or 27) should be in a separate CD/floppy. Also, each e-TDS return file should be in one CD/floppy. It should not span across multiple floppies. In case the size of an e-TDS return file exceeds the capacity of one floppy, it should be furnished on a CD.
2. Each e-TDS return file should be accompanied by a duly filled and signed (by an authorized signatory) Form 27A in physical form.
3. Label should be affixed on each CD/floppy mentioning name of the deductor, his TAN, Form no. (24, 26 or 27) and period to which the return pertains.
4. There should not be any overwriting / striking on Form 27A. If there is any, then the same should be ratified by an authorized signatory.
5. No bank challan, copy of TDS certificate should be furnished along with e-TDS return file.
6. In case of Form 26 and 27, deductor need not furnish physical copies of certificates of no deduction or lower deduction of TDS received from deductees.
7. In case of Form 24 deductor should furnish physical copies of certificates of ‘no deduction or deduction of TDS at lower rate’, if any, received from deductees.
8. e-TDS return file should contain TAN of the deductor without which the return will not be accepted.
9. In case the e-TDS return file is in a compressed format, it should be compressed using WinZip 8.1 or ZipItFast 3.0 compression utility only to ensure quick and smooth acceptance of the file.
Notification on TDS and TCS
May 25th, 2009The Ministry of Finance vide Notification No. S.O.858 (E) dated 25th March 2009 informed taxpayers that the new Form 17 (the challan for payment of TDS and TCS) is applicable only for payment of tax deducted or collected at source on or after 1st April 2009. Therefore, in respect of any TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) made before the 1st April, 2009, the payment will continue to be made to the credit of the Central Government by using the challan in Form No. 281 (i.e. the old challan form) even after 31st March 2009.
