TDS UNDER Income Tax Act (Important Points to be Remember)

@ Who is liable to effect TDS?

Every Person is liable to effect TDS, if it is due Except the Individuals and HUF, If they are exempted from Tax Audit.

@ What is the Threshold limit of deductee to Effect TDS?.

  1. Business Concern.                    Rs. 1crore.
  2. Professional.                            Rs.50 Lakhs.
  3. Rent(Lessor)                            Rs.50,000/- per month.

ii) Salary ( Employee)                            Rs.2,50,000/- per year.

iii) Contract payments                           Single Payment above Rs.30,000/- or

                                                     Annual payment above Rs.1,00,000/-

iv)Transporter services.               The transporter have 10 and more vehicles. ( If the transporter filed PAN Copy and  a declaration to the effect that they have below 10 vehicles, TDS Exempted ).         

v) NRE

    ( Non – Resident External )      From any amount.

@ What are the TDS tax Rate?.

From Contractor.                    1% from an Individual Contractor and 2% from a Firm. If without PAN TDS @20%.

          From (Lessor ) Rent.               Land & Building @10% and Plant &

                                                          Mechinary @2%. If Rent Rs.50,000/-PM

                                      and the Lessor is below the Audit Limit

                                      TDS @5%.

          From Professional.                            Above Rs.30,000/-pm.TDS @10%.

From Commission/ Brokerage.                   Above Rs.15,000/-TDS @5%.

Technical Services.                            Above Rs.30,000/-TDS @2%.

NRE.                                                 Any amount TDS @31.2%

                                                ( ie. Tax @30% and cess thereon @4%)

Seller of Land other than

Agricultural Land.                                      Above 50Lakhs TDS @1%.   

@ When The TDS amount

Remitted to Govt.                    7 th Day of every subsequent month .

                                                For the month march 30th day of April.              

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