Intimation to the Department about Payment to Non-Resident Introduction Any person making a payment to a non-resident must furnish information in Form 15CA and, in certain cases, obtain a certificate in Form 15CB from a Chartered Accountant. Form 15CA – Details of Foreign Payments Scenario Form 15CA Part to be Filed Additional Requirement Payment is chargeable to tax & ≤ 5… Read More »

Quarterly Return by Banks to Report Interest Payments Introduction Banks and certain financial institutions must file quarterly returns to report interest payments (other than on securities) made to resident individuals where TDS is not deducted. Who Must File Quarterly Returns? Banks and Co-operative Banks o If interest (other than on securities) paid to a resident… Read More »

Consequences of Failure to Deduct or Pay TDS Introduction If any person fails to deduct TDS or deducts but does not deposit it with the Government, they are deemed an assessee-in-default and are subject to interest, penalties, prosecution, and disallowance of expenses. When Is a Deductor Deemed to Be in Default? Failure to deduct TDS.… Read More »

Tax Deduction and Collection Account Number (TAN) Introduction Every person responsible for deducting or collecting tax at source must obtain a Tax Deduction and Collection Account Number (TAN) within the prescribed time. Application Process Application for TAN must be made inForm 49B. It can be filed electronically or manually with the Income-tax Department. Time Limit… Read More »

Requirement to Furnish PAN for TDS Introduction Any person receiving income subject to tax deduction at source (TDS) must furnish his Permanent Account Number (PAN) to the deductor. Failure to provide PAN results in higher TDS rates. TDS Deduction Rates When PAN Is Not Furnished General Rule (Section 206AA): TDS is deducted at the highest… Read More »

TDS Certificate Introduction A person deducting tax at source (TDS) must issue a TDS certificate to the deductee, specifying the tax amount, rate, and other prescribed details. The certificate is generated from the TRACES portal after processing the TDS statement. Types of TDS Certificates Form 16– Issued by the employer for TDS on salary (Section… Read More »

Filing of TDS Return Introduction Any person responsible for deducting tax at source (TDS) must file a quarterly statement in the prescribed format by the due date. However, for TDS deducted under Sections 194-IA, 194-IB, 194M, and 194S (for specified persons), the statement is filed monthly. Forms for Filing TDS Returns Form 24Q– For salary income (Sections 192 and 194P). Form 26Q–… Read More »

Due Dates for Deposit of TDS Introduction Tax deducted at source (TDS) must be deposited with the Central Government within the prescribed due dates. Due Dates for Government Deductors Without Challan: Deposit tax on the same day it is deducted. With Challan (ITNS 281): Deposit tax by the 7th of the following month. Due Dates for Other Deductors For… Read More »

Duties of a Person Deducting Tax at Source (TDS) Introduction A person responsible for deducting tax at source must deposit the tax with the Central Government, file TDS statements, and issue TDS certificates to the deductee within the prescribed timelines. Deposit of TDS The deductor must deposit the TDS on or before the due date.… Read More »

Credit for Tax Deducted at Source (TDS) Introduction Credit for tax deducted at source (TDS) is available to the person from whose income the tax has been deducted. However, credit is allowed only if the deductor deposits the tax with the Central Government. Eligibility for TDS Credit General Rule TDS credit is granted to the… Read More »