Quick Answer: When TDS Is Not Required To Be Deducted?

When TDS is required to be deducted?

TDS is applicable to the various incomes received by an individual such as salaries, interest on fixed deposits etc.

It is deducted when income is paid/accrued rather than at a later date.

For FY 2020-21, the government has reduced the TDS rates on non-salaried payments..

What will happen if TDS is not deducted?

For delay/non-deduction of TDS, an interest of 1% per month or a part thereofon the amount of such tax from the date on which it was deductible, to the date on which it is deducted is required to be paid; … And for delay in filing of TDS returns a late filing fee of Rs.

In which cases TDS is not applicable?

TDS is not applicable in the following cases:When the amount is paid to government or any government body and Reserve Bank of India.Amount is paid to notified mutual funds under Section 10(23D).When deductee has certificate of no-deduction under Section 192 of the Income Tax Act.More items…•

Is TDS paid monthly?

It means, if the deductor has deducted tax from payments in the month of November, then he has to pay the TDS on or before the 7th of December….8) What are the due dates for TDS?MonthThe due date for payment of TDSMarch30th of April11 more rows

What is the TDS for rent?

TDS on Rent in this case is required to be deducted under Section 194I @ 10% of the total amount paid or payable during the year. Earlier, TDS on Rent was required to be deducted if the Rent paid was more than Rs. 1.8 Lakhs but w.e.f Financial Year 2019-20, this limit has been increased to Rs. 2.4 Lakhs per annum.

What is the TDS rate for proprietorship firm?

7. What is the rate of TDS?Sl. NoNature of PaymentTDS Rate if PAN available1Payment / Credit to resident individual or HUF1%2Payment/Credit to any resident person other than individual / HUF2%3Payment/ credit to TransportersNILSep 29, 2020

Can I deduct TDS without tan?

23 September 2011 You can deduct TDS without TAN, but you have to apply for the same before depositing the same because TAN is mandatory for depositing TDS.

What is TDS rate?

TDS Rates Applicable for a Domestic CompanyTDS Rate (%)TDS Rates from 01.04.2020 to 13.05.2020TDS Rates from 14.05.2020 to 31.03.20215 (w.e.f 01.06.2016) (10 % from 01.04.2015 to 31.05.2016)53.752 102 101.5 7.51 5 (w.e.f from 01.06.2017) (If payment of Rent exceeds Rs. 50,000/- per month. ) 101 5 100.75 3.75 7.51011 more rows•Sep 29, 2020

How is TDS calculated?

Here’s how an individual can calculate TDS on income: Add basic income, allowances and perquisites to calculate gross monthly income. Compute the available exemptions under Section 10 of the Income Tax Act (ITA) … Multiply the number obtained from the above calculation by 12, as TDS is calculated on yearly income.

How is TDS penalty calculated?

You have to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS. For example: … Then the calculation comes out to Rs 200 x 105 days = Rs 21,000, but since this is greater than Rs 5000, you will have to pay only Rs 5000 as the late filing fee.

Is TDS certificate mandatory?

Under Section 203 of the Income Tax Act, 1961 it is mandatory for all Deductors to deduct TDS. After deducting the TDS, the Deductor has to issue relevant certificates. This certificate is called as TDS Certificate. However, there is no obligation to issue TDS certificate in certain cases.

On which income TDS is applicable?

TDS Rate ChartAnnual IncomeTax RatesUp to Rs.2,50,000NilRs.2,50,001-Rs.5,00,0005%Rs.5,00,001-Rs.10,00,000Rs.12,500 + 20% of income above Rs 5 lakhsAbove Rs.10,00,000Rs.1,12,500 + 30% of income above Rs 10 lakhs

Who can file TDS return?

TDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments : Payment of Salary.

How many types of TDS is there?

2 typesIn general, there are 2 types of TDS certificates that are issued by deductors. Form 16: Issued by employers to employees listing down the details of the tax deductions made throughout the year. Form 16A: For all other TDS deductions other than salary.

How can I check my TDS without tan?

How to file return and claim my TDS without TAN number of… Go to incometaxindiaefiling.gov.in. Login into your Account (PAN based). Once Login, go to My Account >> View Form 26AS (Tax Credit).