Tax Deducted at Source(TDS)

•  In General word we can say tax will deduct or cut at the time of source itself i.e. at the time of payment only so here clarify that responsibility for deduct tds is on payer only also called as deductor.
• a person who deduct tds at the payment to recipient (deductee) and deposited such deducted amount to government within stipulated time and also file return timely.
• Such deducted amount is also a form of advance tax for recipient point of view and such credit is available at the time of annual income tax return filling.
• Under income tax provision u/s 40(a)(ia) if person( payer) who claim such payment as expenses, will disallow partly some payments if tds will not deducted or not deposited within prescribed time limit and resulting profit will increase and tax liability will also increase and also interest and penalty u/s 201 of income tax act, 1961 will levy.

Commonly Used TDS Section for General Business

• 192: TDS on salary Expense
• 194A: TDS on interest other than interest on securities
• 194C:TDS on Contract
• 194H: TDS on Commission/Brokerage other than insurance commission
• 194I: TDS on rent paid
• 194J:TDS on fees for professional or technical services, royalty or directors fees
•  194Q:TDS on payment to seller, if total value is exceed 50 lacs with such vendor and buyer( deductor) turnover exceed 10 crore preceding previous years
•  194R: TDS on benefit/ Perquisites payment to residents

TDS Section which applicable for all individual HUF whether income from salary/ capital gain or any other head i.e even other than business/ profession income

• 194IB: TDS on rent paid by certain individual/HUF
• 194M: TDS on payment covered under 194C/194H/194J for individual/ HUF not audited cases will cover certain payments.
• 194IA: TDS on purchase of immovable property like plot

TDS section for securities business/Insurance Business/lottery or Crossword puzzle/ builder type of business/mutual fund /government payment/other payments/Non resident payments/other miscellaneous payments

• 193: TDS on interest on securities
• 194: TDS on dividend payment
• 194d: TDS on insurance commission
• 194da: TDS from payment of life insurance policy
• 194b: TDS on winning from lotteries or crossword puzzles
• 194bb: TDS on winning from horse races
• 194G:TDS from commission on sale of lottery tickets
• 194E:TDS payment to non resident sportsman or sports association

TDS section for securities business/Insurance Business/lottery or Crossword puzzle/ builder type of business/mutual fund /government payment/Non resident payments/other miscellaneous payments

• 194EE: TDS payment in respect of national saving scheme
• 194IC: TDS payment under Joint development agreement Like between land owner and builder agreement for construction of business.
• 194K: TDS on dividend payment to unit holders
• 194LA: TDS on compensation/enhanced compensation in compulsory acquisition (other than agriculture land)
• 194LD: TDS on interest of Bonds/Government securities to FII/Qualified Foreign Investor

TDS section for securities business/Insurance Business/lottery or Crossword puzzle/ builder type of business/mutual fund /government payment/Non resident Payments /other miscellaneous payments

• 194LB: TDS on interest of infrastructure fund for non resident or foreign company.
• 194LBA: TDS on income payment to unit holders by business trusts
• 194LC: TDS on interest payment to non resident/foreign company by business trust/specified Indian company subject to such special conditions.
• 194LBB: TDS on income payment to unit holder by investment funds
• 194LBC: TDS on income payment to investor by securitization trust
• 194N: TDS on payment by banks/post office/cooperative bank to account holder in case exceed 1 crore( withdrawal of funds from bank exceed 1 crore liable to deduct TDS.
• 194O: TDS on payment by e-commerce operator to e-commerce Participants.

TDS section for securities business/Insurance Business/lottery or Crossword puzzle/ builder type of business/mutual fund /government payment/Non resident payments /other miscellaneous payments

• 194P: TDS in case of specified senior citizen
• 194S: TDS on payment of transfer virtual digital assets.
• 195: TDS on other payments to Non residents

This is inclusive list of TDS provisions
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