TDS means tax deducted at source it means income tax is deducted by the person who make to payment from the amount paid and balance is paid. Amount so deducted is deposited in government account or pay using online tds e payment option against PAN number of the receiver of income by periodical TDS Return filing . Accumulated TDS amount deducted is used to pay final income tax calculated while filing Income tax returns.
Proprietorship should deduct TDS only if they are liable to TAX audit and monthly rental payment exceeds Rs.50,000.
TDS deduction is compulsory for partnership firm and private limited company.
General TDS Rates for FY 2020 – 2021 –
| 1. Rent per annum is greater than 2,40,000 – 194I | 10 % W.E.F 14.05.2020 to 31.03.2021 7.5 % |
| 2. Salary 192 | As per slab rate to be deducted proportionally |
| 3. Contract payment – 194C Single payment – 30,000 | Individual and HUF – 1% Others 2 %.W.E.F 14.05.2020 to 31.03.2021 Individual and HUF – 0.75% Others 1.5 %. |
| 4. Commision of Brokerage 194H if commision Exceeds 15000 | 5% W.E.F 14.05.2020 to 31.03.2021 3.75% |
| 5. Fees for professional services – 194J – if amount exceeds 30,000 P.A | 10 % W.E.F 14.05.2020 to 31.03.2021 7.5% |
Due date for TDS return filing
PERIOD DUE DATE
| 1st Quarter – April 2020- June 2020 | July 31 st |
| 2nd Quarter – July 2020- September 2020 | October 31st |
| 3rd Quarter – October 2020 – December 2020 | January 31st |
| 4 th Quarter – January 2021 – March 2021 | May 31 st |
Due date for TDS payment in online mode is 7 th of the following month , and for month of march it is 30 th of april.
Due dates are revised as a Effect of COVID -19 the same had been not updated here.
