Can We Deduct TDS At Higher Rate?

Who is liable for TDS deduction?

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment.

But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited..

What is the minimum amount for TDS deduction?

Rs. 30,000Minimum Amount of Payment for Deduction of TDS under Section 194C. If the payment that is being made to the contractor does not exceed Rs. 30,000, No TDS on payment to contractor is required to be deducted. However, if the total of all such payments made or to be made during a financial year exceeds Rs.

What is the percentage of TDS to be deducted?

TDS Deduction RateTaxable IncomeTax RateUp to Rs. 2,50,000NilRs. 2,50,000 to Rs. 5,00,0005%Rs. 5,00,000 to Rs. 10,00,00020%Above Rs. 10,00,00030%

At what time TDS should be deducted?

Regulations regarding TDS return filing – TDS returns should be filed on the 31st day of January, May, July, and October of every financial year. Non-filing or late filing of return will attract a penalty of Rs. 200 every day (according to Section 234E of the Income Tax Act of India) till the return is filed.

How can I carry forward excess of TDS?

In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any, can be carried forward to the next year for claim in the TDS statement.

How is TDS penalty calculated?

You have to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS. For example: … Then the calculation comes out to Rs 200 x 105 days = Rs 21,000, but since this is greater than Rs 5000, you will have to pay only Rs 5000 as the late filing fee.

Is TDS return mandatory?

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.

What is TDS rate?

TDS Rates Applicable for a Domestic CompanyTDS Rate (%)TDS Rates from 01.04.2020 to 13.05.2020TDS Rates from 14.05.2020 to 31.03.20215 (w.e.f 01.06.2016) (10 % from 01.04.2015 to 31.05.2016)53.752 102 101.5 7.51 5 (w.e.f from 01.06.2017) (If payment of Rent exceeds Rs. 50,000/- per month. ) 101 5 100.75 3.75 7.51011 more rows•Sep 29, 2020

Can TDS deducted be reversed?

ERP 9, such reversal of expenses and TDS is possible only when the cancellation of transaction is made before the payment of TDS to the Government. … ERP 9, reversal of expenses can be accounted using Debit Note and reversal of TDS deducted can be accounted using Credit Note.

How many types of TDS is there?

2 typesIn general, there are 2 types of TDS certificates that are issued by deductors. Form 16: Issued by employers to employees listing down the details of the tax deductions made throughout the year. Form 16A: For all other TDS deductions other than salary.

Can TDS be deducted at higher rate?

One important care to be taken by the recipient of income is to supply his/her PAN to the deductor because in the absence of PAN, the deductor may deduct TDS at the higher of rates prescribed in the Act or rates in force or 20% under the provision of section 206AA of the Act.

What is the rule for TDS deduction?

TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5% to 30% which is equivalent to the applicable income tax slabs.

What happens if TDS not deducted?

For delay/non-deduction of TDS, an interest of 1% per month or a part thereofon the amount of such tax from the date on which it was deductible, to the date on which it is deducted is required to be paid; … And for delay in filing of TDS returns a late filing fee of Rs.

Can excess TDS paid be adjusted?

Once you deposit the excess TDS after being deducted in excess, the only way is to revise the return, if already submitted. … Hence the excess TDS paid for Quarter-1 can be adjusted in the next quarter. And also it can be adjusted in the next financial year as per the new FVU available.

Can TDS be deducted without tan?

The buyer of any immovable property need not obtain a TAN (Tax Deduction Account Number) for making payment of the TDS on immovable property. You can make the payment using your PAN.

What happens if excess TDS paid?

In case of any excess TDS deducted due to a miscalculation, the Income Tax Department has an official portal for taxpayers to pay taxes and claim any returns and refunds. There are no specific forms to submit for processing a TDS refund application. … Sometimes an excess of TDS may get deducted due to miscalculations.

Where Is TDS applicable?

TDS is applicable to the various incomes received by an individual such as salaries, interest on fixed deposits etc. It is deducted when income is paid/accrued rather than at a later date. For FY 2020-21, the government has reduced the TDS rates on non-salaried payments. TDS stands for ‘Tax Deducted at Source’.

Why is TDS required?

The government uses TDS as a tool to collect tax in order to minimise 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.