Who is liable to deduct TDS in case of individual?
From September 1, 2019, an individual or HUF paying any sum to a contractor or a professional or commission or brokerage more than Rs 50 lakh in a financial year would be required to deduct tax at source (TDS) at the time of credit of such sum or at the time of payment of such sum; whichever is earlier.
What is the penalty for TDS return?
As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS.
Who is liable for TDS return?
Who is Eligible for TDS Return? Employers and organisations with a valid TAN are qualified for filing TDS returns. Individuals whose accounts are audited under Section 44AB, and hold an office under the government or companies are liable to file online TDS return every quarter.
In which case TDS is applicable?
The Finance Act 2020 specifies that All individuals & HUF will be liable to deduct TDS if the revenue exceeds Rs. 1 Crore in the case of corporation and Rs. 50 Lakhs in the case of the profession in the previous year. Such revisions shall take effect from 1 April 2020.
Can a proprietor deduct TDS?
Under certain circumstances an Individual or Sole Proprietorship Firm is also required to deduct TDS and undergo the whole hassle of obtaining a TAN (tax deduction account number), deducting and paying TDS on time, filing a quarterly TDS return and issuing a TDS certificate to the person from whom TDS has been deducted …
Who is liable if TDS is not deducted?
Further, according to Section 191 of the Act, a person is liable to pay tax directly (on his/her own) on salary income only if tax has not been deducted from the salary in the form of TDS.
Can an individual file TDS return?
TDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments : Payment of Salary.
Is it mandatory to file TDS return?
TDS return filing is compulsory for all the assessees who fall under the tax slab as prescribed by the Income Tax Department. It is compulsory to e-file the TDS returns and it can be done through the official Income Tax e-filing portal. It is mandatory that the TDS returns are submitted on time by the deductors.
What is the TDS rate for individual?
The TDS rate on income depends on the salary of an individual and based on that it ranges between 10% to 30%….TDS Deduction Rate.
| Taxable Income | Tax Rate |
|---|---|
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,000 to Rs. 5,00,000 | 5% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
What happens if Deductor does not deduct TDS?
Penalty for companies for not depositing or not deducting TDS on time. The employer can make the interest payment on such late payment of TDS before filing TDS returns or demand raised by TRACES. Also, the interest paid delay while depositing TDS is not allowed as an expense under the income tax provisions.
Can I file nil TDS return?
Legally there is no need to file Quarterly TDS Return/ Statement where no tax has been deducted at source. NSDL is also of the view that it is not at all compulsory to file NIL return, if deductor has not deducted any tax at source or if there is no transaction at all for a particular period.
Is it compulsory to file TDs return on E-TDs?
As per Section 206 of Income Tax Act all corporate and government deductors are compulsorily required to file their TDS return on electronic media (i.e. e-TDS returns). However, for other Deductors, filing of e-TDS return is optional.
How to avoid late filing fee penalty in TDs return?
As we know that New entries can easily be added by revision of tds return but you can avoid late filing fee penalty by filing in complete return within time .The same rule is applicable for other quarter also.
What are the features of E-TDs return?
The e TDS return should have following features: 1 Each e-TDS return file (Form 24, 26 or 27) should be in a separate CD/floppy. 2 Each e-TDS return file should be accompanied by a duly filled and signed (by an authorised signatory) Form 27A in physical form. 3 Each e-TDS return file should be in one CD/floppy.
Is there any upload fee for correction E-TDS/TCS statement?
Yes. Upload fee is payable for each and every e-TDS/TCS return accepted by the TIN-FC, irrespective of whether it is a correction e-TDS/TCS statement or an original e-TDS/TCS statement. Upload fees applicable for correction statement is as per table below: