TDS RATE CHART

ASSESSMENT YEAR 2012-2013 FINANCIAL YEAR 2011-2012 Company Firm Nature of Payments Co-op Threshold Made to Resident Soc. Local Authority
Sec. 194A 194B 194C 194D 194H 194 I 194J Description Amount 10,000 5,000 10,000 30,000 75,000 20,000 5,000 1,80,000 1,80,000 30,000 RATE 10 10 30 2 2 10 10 10 2 10

Individual HUF

If No PAN OR Invalid PAN

RATE 20 20 30 20 20 20 20 20 20 20

RATE 10 10 30 1 1 10 10 10 2 10

Interest - Payable by Banks Interest - Payable by Others Winning from Lotteries / Crossword Puzzle Payment to Contractors - Single Transaction Payment to Contractors - Aggregate during FY Insurance Commission Commission / Brokerage Rent Rent - Plant / Machinery Professional Fees

Procedure:

What a deductor must do?

1. Obtain TAN A ten digit alpha numeric number 2. He/She should obtain PAN of the deductee. 3. He/She should deduct the tax at correct rate. 4. The tax deducted has to be deposited in the designated banks within specified time. By or on behalf of the Government: on the same day, By or on behalf of any other person: before the 7th of the following month. On or before 30th day of April where the income or amount is
5. Use challan no. 281 for depositing TDS amount. 6. File statements of tax deduction in the prescribed time. Due date Sl. Date of ending of the No. quarter of the financial year th th 1. 30 June 15 July of the financial year th th 2. 30 September 15 October of the financial year st th 3. 31 December 15 January of the financial year st 4. 15th May of the financial year immediately 31 March following the financial year in which deduction is made 7. Use correct form to file TDS/TCS Returns
8. Issue TDS certificates as per existing procedure and within the time prescribed

credited or paid in the month of March.

Sl. No. 1.

Category Salary No.16) (Form

Periodicity of furnishing TDS certificate Annual

Due date

By 31 day of May of the financial year immediately following the financial year in which the income was paid and tax deducted Within fifteen days from the due date for furnishing the statement of TDS

st

2.

Non-Salary (Form No.16A)

Quarterly

CA AMIT HANDA F.C.A , D.I.S.A 9988317817

CONSEQUENCES OF DEFAULT

@ 1.5%

In addition to the above, there are other consequences in certain cases, as enumerated below; Disallowance of specified expenditure (while computing the income of the deductor) if TDS is not deducted from the payment. (Section 40a(ia)). Where the tax has not been paid after its deduction it shall be charge on the asset of the defaulter to recover the amount of TDS. (section 201(2)).

CA AMIT HANDA F.C.A , D.I.S.A 9988317817

Feedback to Deductors A. CHALLAN STATUS ENQUIRY AT www.tin-nsdl.com

1. Through the TAN Based View details of all challans deposited in the banks for a given TAN during a specified period can be viewed. 2. Through CIN Based View details of any particular challan can be verified. View of tax payments made in banks This facility allows the taxpayer to verify the tax payment made by him through the website of Tax Information Network (TIN) at www.tinnsdl.com.
Correction in OLTAS challan

NSDL receives tax collection data as uploaded by the bank. NSDL is not authorized to carry out any changes in the data sent by the bank to TIN. The fields that can be corrected by the Taxpayer through Bank are tabulated below:
Sl. No. 1 2 3 4 5 6 Note : Above correction mechanism is applicable only for physical challans with deposit date greater than equal to September 1, 2011. 1. 2. Any correction request initiated by the taxpayer after the time limit specified above shall be rejected by Bank. 3. For challans with challan deposit date from September 1, 2011 to September 30, 2011, the time limit for correction in TAN/PAN, Assessment Year and Amount will be within 45 days from challan deposit date. 4. The fields that can be corrected and the entity authorized to carry out corrections on challan with deposit date less than September 1, 2011 are as below: Sl. No. 1 2 3 4 5 6 7 Type of Correction on Challan PAN/TAN Assessment Year Major Head Minor Head Nature of Payment Total Amount Name Performed By Assessing Officer Assessing Officer Assessing Officer /Bank Assessing Officer Assessing Officer Bank Bank Type of Correction on Challan PAN/TAN Assessment Year Total Amount Major Head Minor Head Nature of Payment Period for correction request (in days) Within 7 days from challan deposit date Within 7 days from challan deposit date Within 7 days from challan deposit date Within 3 months from challan deposit date Within 3 months from challan deposit date Within 3 months from challan deposit date

B. Status of TDS/ TCS Statements:

Deductor/collector can view this online at www.tin-nsdl.com against TAN and Provisional Receipt Number (PRN), under the link Quarterly Statement Status available at www.tin-nsdl.com.

If statement is accepted, deductor can also check - Whether challans in statement have been matched with challan uploaded by bank . If statement is rejected - Reason for rejection can be viewed and can be as follows: - Match Pending: Corresponding challan details not received from the bank. - Match Failed (Challan): TAN and/or amount relating to a challan in the statement does not match with the corresponding details received from banks. - PAN not in ITD database: Count of deductees, where structurally valid PAN stated in the statement is not found in the ITD PAN database. 3

CA AMIT HANDA F.C.A , D.I.S.A 9988317817

No /Invalid PAN: Count of deductees where PANNOTAVBL, PANINVALID or PANAPPLIED stated in the PAN field in the statement.

In the present system of processing of e-TDS returns, the returns are processed online and mismatch report showing defaults on various accounts is generated. Based on this mismatch report, the assessing officers issue show-cause notices to the deductors and take follow up actions. It has been decided by the CBDT that: (i) where the default on account of short deduction is less than Rs.10 for each deductee, the demand is round off to zero; and (ii) after considering (i) above, deductor-wise demand/default, if any, of Rs.100 or less will also be ignored for further action.

C. TAN REGISTRATION UTILITY:

CBDT has issued Circular 03/2011 on May 13, 2011 detailing new procedure of Issuance of TDS Certificates in Form No. 16A downloaded from TIN Website and option to authenticate the same by way of digital signature.

FY 2010-11 Download Form 16A from TIN Web Optional Site Digitally Sign Form 16A

FY 2011-12 Mandatory for Companies and Banks. Optional for others

Optional but only if downloaded from Optional but only if downloaded TIN Web site from TIN Web site All deductors can manually issue TDS Companies and Banks cannot Certificate manually issue TDS Certificate

Manually Issue TDS Certificate

PUBLIC AWARENESS IS THE REAL KEY TO SUCCESSFUL IMPLEMENTATION OF THE LAW.

CA AMIT HANDA F.C.A , D.I.S.A 9988317817