Tax Deducted at Source (TDS)

A warm welcome to the Tax Deducted at Source (TDS) course by Uplatz.

TDS stands for Tax Deducted at Source. The TDS concepts & rules were introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.

As per the India Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department. The government uses TDS as a tool to collect tax in order to minimize tax evasion by taxing the income (partially or wholly) at the time it is generated rather than at a later date. TDS is applicable on various incomes such as salaries, interest received, commission received, dividends etc.

TDS is not applicable to all incomes and persons for all transactions. Different TDS rates have been prescribed by the Income Tax Act for different payments and different categories of recipients. For example, payment of redemption proceeds by a debt mutual fund to a resident individual is not subject to TDS but for a Non-resident Indian is subject to TDS.

Uplatz brings this comprehensive training on TDS with the concepts explained in detail. This TDS course covers each and every section of TDS rules as per India Income Tax laws. The methodology for TDS payments and returns are well described in the TDS course.

Tax Deducted at Source (TDS) - Course Syllabus

1- What Is TDS?

2- TDS Deduction Under-

I-Section-192- TDS on Salary

a) Applicability Of TDS Under Section 192

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Example

II- Section- 192A- TDS On Premature Withdrawal From Employee Provident Fund

a) Applicability Of TDS Under Section 192A

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Non Applicability Of TDS Under Section 192A

e) Example

III- Section- 193- TDS On Interest On Security

a) Who Is Liable To Deduct TDS

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Non Applicability Of TDS Under Section 193

e) Example

IV- Section- 194- TDS On Dividend

a) Who Is Liable To Deduct TDS

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Non Applicability Of TDS Under Section 194

e) Example

V- Section- 194A- TDS On Interest Other Than Interest On Security

a) Who Is Liable To Deduct TDS

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Non Applicability Of TDS Under Section 194A

e) Example

VI- Section- 194B- TDS On Winnings From Lotteries, Crossword Puzzles

a) Who Is Liable To Deduct TDS

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Non Applicability Of TDS Under Section 194B

e) Example

VII- Section- 194BB- TDS On Winnings From Horse Race

a) Who Is Liable To Deduct TDS

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Non Applicability Of TDS Under Section 194BB

e) Example

VIII- Section- 194C- TDS On Payment To Contractors And Sub-Contractor

a) Applicability Of TDS Under Section 194C

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194C

e) Non Applicability Of TDS Under Section 194C

f) Example

IX- Section- 194D- TDS On Insurance Commission

a) Applicability Of TDS Under Section 194D

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194D

e) Example

X- Section- 194DA- TDS On Payment In The Respect Of Life Insurance Policy

a) Applicability Of TDS Under Section 194DA

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194DA

e) Example

XI- Section- 194E- TDS On Payment To Non-Resident Sportsman Or Sports Associates

a) Applicability Of TDS Under Section 194E

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194E

e) Example

XII- Section- 194EE- TDS On Payment To Non-Resident Sportsman Or Sports Associates

a) Applicability Of TDS Under Section 194E

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194EE

e) Non Applicability Of TDS Under Section 194EE

f) Example

XIII- Section- 194F- TDS On Repurchase Of Units By Mutual Fund Or Unit Trust Of India

a) Applicability Of TDS Under Section 194E

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194F

e) Example

XIV- Section- 194G- TDS On Commission On Sale Of Lottery Tickets

a) Applicability Of TDS Under Section 194G

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194G

e) Example

XV- Section- 194H- TDS On Commission Or Brokerage

a) Applicability Of TDS Under Section 194H

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194H

e) Non Applicability Of TDS Under Section 194H

f) Example

XVI- Section- 194I- TDS On Rent

a) Applicability Of TDS Under Section 194I

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194I

e) Non Applicability Of TDS Under Section 194I

f) Example

XVII- Section- 194IA- TDS On Payment On Transfer Of Certain Immovable Property Other Than Agricultural Land

a) Applicability Of TDS Under Section 194IA

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194IA

e) Non Applicability Of TDS Under Section 194IA

f) No Requirement Of TAN

g) Example

XVIII- Section- 194IB- TDS On Rent By Certain Individual Or HUF

a) Applicability Of TDS Under Section 194IB

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194IB

e) Non Applicability Of TDS Under Section 194IB

f) No Requirement Of TAN

g) Example

XIX- Section- 194IC- TDS On Payment Under Specified Agreement

a) Applicability Of TDS Under Section 194IC

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194IC

e) Non Applicability Of TDS Under Section 194IC

h) Example

XX- Section- 194J- TDS On Fees For Professional Or Technical Services

a) Applicability Of TDS Under Section 194J

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194J

e) Non Applicability Of TDS Under Section 194J

i) Example

XXI- Section- 194K- TDS On Income In The Respect Of Units

a) Applicability Of TDS Under Section 194K

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194K

e) Non Applicability Of TDS Under Section 194K

j) Example

XXII- Section- 194LA- TDS On Payment Of Compensation On Acquisition Of Certain Immovable Property

a) Applicability Of TDS Under Section 194LA

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 19LA

e) Non Applicability Of TDS Under Section 194LA

f) Example

XXIII- Section- 194LB- TDS On Income By Way Of Interest From Infrastructure Debt Fund

a) Applicability Of TDS Under Section 194LB

b) Rate Of TDS

c) Time Of Deduction Of TDS

XXIV- Section- 194LC- TDS On Income By Way Of Interest From An Indian Company Or Business Trust

a) Applicability Of TDS Under Section 194LC

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194LC

e) Non Applicability Of TDS Under Section 194LC

f) Example

XXV- Section- 194LD- TDS On Interest On Government Securities Or Rupee Denominated Bonds Of Indian Company Payable To A Foreign Institutional Investor Or Qualified Foreign Investor

a) Applicability Of TDS Under Section 194LD

b) Rate Of TDS

c) Time Of Deduction Of TDS

XXVI- Section- 194M- TDS On Payment Made By An Individual Or A HUF For Contract Work Or By Way Of Commission Or Brokerage Of Fee For Professional Services

a) Applicability Of TDS Under Section 194M

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194M

e) Non Applicability Of TDS Under Section 194M

f) No Requirement Of TAN

g) Example

XXVII- Section- 194N- TDS On Cash Withdrawal

a) Applicability Of TDS Under Section 194N

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Threshold Limit For Deduction Of TDS Under Section 194N

e) Non Applicability Of TDS Under Section 194N

f) Example

XXVIII- Section- 194O- TDS On Certain Payment Made By E-Commerce Participant

a) Applicability Of TDS Under Section 194O

b) Rate Of TDS

c) Time Of Deduction Of TDS

d) Non Applicability Of TDS Under Section 194O

e) Example

XXIX- Section- 195- TDS On Other Sums

f) Applicability Of TDS Under Section 195

g) Rate Of TDS

h) Time Of Deduction Of TDS

i) Example

The above topic is the sub-topic of TDS. TDS is too wide and it covers many other sub-topics examples- TDS Returns, Cases on which TDS not applicable, Interest, Penalties, Legal Cases, Credit of TDS, Consequences of failure to deduct or pay TDS, etc.

Rates for TDS

Taxes shall be deducted at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act. However, in case of payment to non-resident persons, the withholding tax rates specified under the Double Taxation Avoidance Agreements shall also be considered.

TDS Payments

TDS is deducted on the following types of payments:

• Salaries

• Interest payments by banks

• Commission payments

• Rent payments

• Consultation fees

• Professional fees

However, individuals are not required to deduct TDS when they make rent payments or pay fees to professionals like lawyers and doctors.

TDS is one kind of advance tax. It is tax that is to be deposited with the government periodically and the onus of the doing the same on time lies with the deductor. For the deductee, the deducted TDS can be claimed in the form of a tax refund after they file their ITR (Income Tax Return).

TDS Return

A deductor has to deposit the deducted TDS to the government and the details of the same have to be filed in the form of a TDS return. A TDS return has to be filed quarterly. Different types of TDS deductions have to be filed using different TDS return forms.