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TDS means tax deducted at source. Income tax is deducted by the person who makes the payment from the amount paid, and the balance is paid. The amount so deducted is deposited in a government account or paid using the online TDS e-payment option against the PAN number of the receiver of income by periodical TDS Return filing. The accumulated TDS amount deducted is used to pay the 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 firms and private limited companies.
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. Commission of Brokerage 194H if commission Exceeds, 15000 | 5%
W.E.F 14.05.2020 to 31.03.2021 3.75% |
| 5. Fees for professional services – 194J – if the amount exceeds 30,000 P.A | 10 %
W.E.F 14.05.2020 to 31.03.2021 7.5% |
The due date for TDS return filing
PERIOD DUE DATE
| 1st Quarter – April 2020- June 2020 | July 31st |
| 2nd Quarter – July 2020- September 2020 | October 31st |
| 3rd Quarter – October 2020 – December 2020 | January 31st |
| 4th Quarter – January 2021 – March 2021 | May 31st |
The due date for TDS payment in online mode is the 7th of the following month, and for the month of March, it is the 30th of April.
Due dates are revised as an Effect of COVID -19 the same had been not updated here.
Sources and editorial note
Written by R. Parasuraman, Founder, with 20 years experience in Tax and Business Compliance. This guide retains the published ChennaiRegistration article and has been reviewed against the cited current sources.