Income tax

Your Guide to TDS (Sections 192-206CA)

Tax Deduction at Source (TDS) is a key mechanism in the Income Tax Act, 1961, to collect tax at the source of income generation. This guide covers the detailed provisions under Sections 192 to 206CA, including TDS on salary, interest, dividends, professional fees, and payments to non-residents. It explains the rates, thresholds, and procedures for deductors, along with the consequences of non-compliance. The guide also highlights the importance of obtaining a TAN, issuing TDS certificates, and filing returns.

Comprehensive Guide to Tax Deduction at Source (TDS) Provisions

Tax Deduction at Source (TDS) is a mechanism introduced by the Income Tax Act, 1961, to collect tax at the source of income generation. It ensures that tax is deducted before the income reaches the recipient, thereby preventing tax evasion. The TDS provisions under Sections 192 to 206CA cover various types of payments, the rates of deduction, and the responsibilities of the deductors. Here’s a detailed overview of these provisions:

Section 192: TDS on Salary

Scope: Applicable to all employers who pay salaries.

Rate: TDS is deducted based on the applicable income tax slab rates for individuals.

Threshold: No tax deduction if the estimated annual income is below the taxable limit.

Procedure: Employers must consider various exemptions and deductions (like HRA, Section 80C investments) before calculating the TDS.

Section 206AB: Higher Rate of TDS for Non-filers

Provision: Higher TDS rate for specified persons who have not filed their income tax returns for the previous two financial years.

Rate: Twice the rate specified in the relevant provision or 5%, whichever is higher.

Compliance and Procedures

TAN Requirement: Every deductor must obtain a Tax Deduction and Collection Account Number (TAN).
TDS Certificates: Form 16 (for salary) and Form 16A (for other payments) must be issued to deductees.
Annual Returns: Annual TDS return must be filed, consolidating all the quarterly returns.

Conclusion

The TDS provisions under Sections 192 to 206CA play a critical role in ensuring the timely collection of taxes and reducing tax evasion. Compliance with these provisions is essential for all deductors to avoid penalties and legal consequences. Understanding the specifics of each section can help taxpayers and businesses manage their tax liabilities efficiently.

FILING YOUR INCOME TAX RETURN F.Y 2023-24 (A.Y. 2024-2025) WITH MYITRONLINE

Income tax filing deadline is right around the corner. If you haven’t filed yet, do it now for FREE on Myitronline! Avoid last minute rush and file your tax return today on MYITRONLINE in Just 5 mins.(www.myitronline.com)

If you are looking for eCA assistance to file your income tax return/ GST, you can opt for MYITRONLINE eCA assisted plan starting

Upload Form-16

Upload Salary Individual Form-16

If you have any questions with filing your tax return, please reply to this mail. info@myitronline.com OR call 9971055886,8130309886.

Note-All the aforementioned information in the article is taken from authentic resources and has been published after moderation. Any change in the information other than fact must be believed as a human error. For queries mail us at marketing@myitronline.com

Income Tax Department Uncovers Online Retailers Tax Evasion 10000 Crore

Krishna Gopal Varshney

An editor at apnokaca

View Articles

Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.

Your email address will not be published. Required fields are marked *

Name *

Email *

Your Comment *

Save my name and email in this browser for the next time I comment.