What is TDS: Meaning, How to View & Download TDS Certificate

What Is TDS?

Who Can Deduct TDS?

When Should TDS be Deducted?

What Is the TDS Rate for Different Types of Payments?

 

The TDS rate varies according to various sections.

Have a look at the following table to understand the different TDS rates.

Section and Nature of Payment

Payer

Applicable Rate

Section 192, Salary

Salaried individual

Applicable Income Tax slab

Section 192A, Premature withdrawal of EPF

Individual

10% of the total sum

Section 193, Interest amount on securities

Individual

10%

Section 194, Dividends

Domestic companies

10%

Section 194A, Interest on assets & securities

Individuals except for taxpayers and HUF liable for audit

10%

Section 194B, Applicable on money earned through any competition or lottery

Individual

30%

Section 194BB, Prize amount on winning horse race

Any individual

30%

Section 194C, Contractors

Individuals except for taxpayers and HUF liable for audit

1% for individuals and HUF, 2% for other taxpayers

Section 194D, Insurance commission

Insurance aggregator

5% for individuals and HUF and 10% for other agents

Section 194DA, Life insurance policy

Individual

1%

Section 194E, Payments to a non-residential sportsperson

Individual

20%

Section 194EE, Deposit under NSS

Individual

10%

Section 194G, Commission from the sale of lottery ticket

Individual

5%

Section 194H, TDS on commission or brokerage earned

Individuals except for taxpayers and HUF liable for audit

5%

Section 194I, TDS on rent

Individuals except for taxpayers and HUF liable for audit

2%

Section 194IA, TDS on funds earned for transfer of immovable assets (except agricultural land)

Individual

1%

Section 194IB, Rent by individuals & HUF

Individuals except for taxpayers and HUF liable for audit

5%

Section 194IC, Payment on agreement

Individual

10%

Section 194J, Professional or technical services

Individuals except for taxpayers and HUF liable for audit

10%

Section 194LA, Compensation for acquisition of an immovable asset

Individual

10%

Section 194LB, Income from infrastructure debt fund interest

Infrastructure debt funds

5%

Section 194LBA, Income from units of a business trust

Business trusts

10% for resident individuals and 5% for NRI

Section 194LBB, Income from units of investment funds

Investment funds

10% for residents

Section 194 LBC, TDS on income earned from investments of securitization trusts

Securitization trusts

25% for individuals and HUF and 30% for investor

Section 194LC, Income from an Indian company

Indian companies and business trusts

5%

Section 194LD, TDS on income earned from certain Government security and bond’s interest

Individual

5%

Section 195, Payment to a non-organizational entity or foreign company

Individual

As specified by DTAA or Income Tax Act

However, if you cannot submit a PAN card, it will be deducted at 20%

How to Deposit TDS?

What Is TDS Return?

When to File TDS Return?

 

You can file a TDS return within the specified date for separate transactions every quarter of the year. TAN, Pan of deductee, payment type, and the amount deducted needs to be furnished during filing. 

Followings are the TDS return filing dates -

Form No.

TDS Deducted on Transaction Type

Due Dates of Return Filing

24Q

Salary

Q1 – 31st July, Q2 – 31st October, Q3 – 31st January, Q4 – 31st May

27Q

Any payment to non-residents (not salary)

Q1 – 31st July, Q2 – 31st October, Q3 – 31st January, Q4 – 31st May

26QB

Sale of property

30 days from the end of the month of TDS deduction

26QC

Rent

30 days from the end of the month of TDS deduction

How to File TDS Return?

The Due Date to Deposit TDS to the Government

What Is a TDS Certificate?

 

By knowing the answer to the question of what a TDS certificate is, you can get the solution of all problems related to the deduction of TDS at different sources of income. It is a type of certificate issued by the entity deducting TDS to the person from whom TDS is deducted or the assessee. It serves as proof that the TDS deducted from you is deposited into the Government account.

Another most important thing to know is what TDS certificate type is and what are the various types of TDS certificates you should ask for.

Form

Certificate for Type of Payment

Frequency & Due Date

Form 16

Salary payment

Yearly, 31st May

Form 16 A

Non-salary payments

Quarterly, 15 days from the due date of filing the return

Form 16 B

Sale of property

Every transaction, 15 days from the due date of filing the return

Form 16 C

Rent

Every transaction, 15 days from the due date of filing the return

Steps to View TDS Certificates

How Is the ‘TDS Certificate’ Option Useful to a Deductee?

What Are the Penalty Provisions of Late or Non Filing of TDS?

Under What Circumstances Can Taxpayers Claim Refund or Reduction of Applicable TDS?

Frequently Asked Questions