Transcript TAX DEDUCTION AT SOURCE (TDS ON SALARY AND

INCOME TAX
(TAX DEDUCTION AT SOURCE)
by Hmingthanga Kipgen
FIRST SESSION
Learning Objectives






Brief Introduction to TDS
TDS – Workflow
TDS Process (Government Offices)
Book Adjustment (BIN)
Verification of Tax Remittance
Income Tax Calculation
Tax Deduction at Source
 Summary of Section 192 to 194 of the IT Act
 Any person responsible for making payment under
the Head “as in Section 192 to 194” shall at the time
of payment, deduct income-tax on the amount
payable.
COMMONLY USED TERM:
Account Office
Deductor
Deductee / Assessee -
Treasury / Pay and Account Offices
DDO / Company etc
Employee / Contractor / Tax Payee etc.
TDS Process - Work Flow
TAX (TDS)
BOOK ADJUSTMENT
BANK DEPOSIT
GAR 7 CHALLAN
ITNS 281 CHALLAN
ACCOUNT OFFICE (TREASURY)
BANK
Only for Govt. Deductor (Offices)
 Book Identification Number
NSDL BIN Details View
Both Govt. and Non-Govt. office
 Challan Identification Number
NSDL OLTAS Details
CENTRAL BOARD OF DIRECT TAX
TDS Process - Work Flow
BOOK ADJUSTMENT
BANK CHALLAN DEPOSIT
CBDT
AG
Deductor
ITNS. 281 Challan
AG Challan
Account Office
Bank
Deductor
Deductee (Tax Payee)
TDS Process – Book Adjustment
ACCOUNT
OFFICES
AIN
24G
Monthly
BIN Details
DEDUCTORS
TAN
24Q / 26Q
Quarterly
Token &
Receipt Nos.
TAX PAYEE
PAN
ITR
Annually
ITR-V
Information required for Return of Tax
Account Office
• AIN Number
• TAN of Deductors
• DDO Regn. No
• TDS Deducted by each
Deductor
• Type of Deduction
Deductor
• TAN Number
• PAN of DDO
• PAN of Deductees
• DDO Regn. No
• DDO Code
• AO AIN Number
• BIN/CIN Details
• IT Deduction Details
Deductee
• PAN
• Form 16/16A (TDS
Certificate)
Tax Payment/Remittance through Account Office
Head of Accounts (TDS through Account Office)
– Major Head
:
Suspense Account
– Minor Head
:
TDS Suspense
(8658)
(112)
Verification of Payment (BIN Details Download)
– https://onlineservices.tin.egov-nsdl.com/TIN/JSP/etbaf/ViewBIN.jsp
Tax Payment through Bank (OLTAS CIN Verification)
https://tin.tin.nsdl.com/oltas/servlet/QueryTaxpayer
INCOME TAX CALCULATION
Income Tax (Tax Slab)
Sr. No
Total Taxable Salary (Rs.)
Income Rates
1
Zero to 2,50,000
0%
2
2,50,001 to 5,00,000
10%
3
5,00,001 to 10,00,000
20%
4
Above 10,00,000
30%
CALCULATION OF INCOME TAX ON SALARY
Net Aggregate Income
(Less) Deduction
U/s 80C, 80CCC, 80CCD(1)
Other Section
Taxable Income
:
Rs. 6,89,000
:
:
:
Rs. 1,50,000 (Max. Rs.1.5Lac)
Rs. 50,000
Rs. 4,89,000
Tax Slab
Salary Distribution
Rate
Income Tax
0 – 250000
250000
0%
0
250001 – 500000
239000
10%
23900
500001 – 1000000
0
20%
0
Income Tax
(Less) Tax Credit u/s 87A
Net Income Tax
(Add Edu. Cess 3%)
Gross Income Tax Liability
:
:
:
:
:
Rs. 23900
Rs. 2000
Rs. 21900
Rs. 657
Rs. 22557
CALCULATION OF HRA EXEMPTION
1. Basic Salary
2. Dearness Allowance (D.A)
3. House Rent Allowance (H.R.A.)
4. Actual Rent Paid
i.e. Annual Salary = Rs. 72000/-
– Rs. (5000x12)
– Rs. (1000x12)
– Rs. (2000x12)
– Rs. (2000x12)
– Rs. 60,000/– Rs. 12000/– Rs. 24000/– Rs. 24000/-
The minimum of the following amount shall be exempt
• Actual HRA received
(2000x12)
• Rent Paid in excess of 10% of salary ( 24000-7200)
• 40% of Salary
– Rs. 24000/– Rs. 16800
– Rs. 28800/-
Therefore, Rs. 16800 shall be exempt and the balance Rs. 7200 shall be included in gross
salary.
THANK YOU
SECOND SESSION
Learning Objectives
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Consequences of Default
Important Dates
Mandatory information for TDS compliances and how to get them?
Traces (TDS Reconciliation Analysis And Correction Enabling System)

Important Websites
CONSEQUENCES OF FAILURE TO DEDUCT OR PAY
SECTION 201(1) of Income Tax Act expressly states that any person liable to
deduct TDS on the income distributed, makes default in the deduction and/or
payment of TDS, shall be treated “assessee in default” and penalty U/s 221 of
Income Tax Act shall be payable by such assessee.
SECTION 201(1A)
“Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company
as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting
fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—
(i) at one per cent for every month or part of a month on the amount of such tax from the date on
which such tax was deductible to the date on which such tax is deducted; and
(ii) at one and one-half per cent for every month or part of a month on the amount of such tax from
the date on which such tax was deducted to the date on which such tax is actually paid,
and such interest shall be paid before furnishing the statement in accordance with the provisions of subsection (3) of section 200”
INTEREST FOR DEFAULT
Sr. No.
Under Section
Rates
1
Late Filing of eTDS Return
234E
Rs. 200 per day
2
Late Deduction/Short
201
1% Per Month
201
1.5% Per Month
Deduction/Non-Deduction of Tax
3
Late Deposit of Tax
PENALTY(Under Section 271H)
1. Failure to submit TDS return within a year of the due date
2. Submission of incorrect details (such as PAN, Challan, TDS amount) in the statement filed
Penalty of between Rs 10,000 (ten thousand) to Rs 1,00,000 (one lakh)
Due Dates for Govt. Deductors
DEPOSIT OF TAX
BIN (for Govt. Deductors only)
CIN (for Govt. and Non-Govt.)
On the same day for which Sum is Credited
On or before 7th Day of corresponding
month in which Sum is credited
TDS RETURN FILING
Quarter
Period
Due Date
Q1
April – June
31-July
Q2
July – September
31-October
Q3
October – December
31-January
Q4
January - March
15-May
Information for TDS Compliances
Mandatory details for eTDS Filing and where to get them:
1.
2.
TAN (Tax Deduction Account Number)
PAN of Person Responsible
3.
4.
5.
6.
7.
8.
9.
BIN/CIN Information
:
AIN of Account office
:
DDO Regn Number
:
PAN of Deductee
:
Payment details
Income Tax Deduction details
Previous eTDS Filing Token Number (if any)
and
Calculation of Income Tax for Salary Employees in case of Annual Statement
10.
:
:
TIN-FC (offline) or NSDL Website (online)
TIN-FC and PAN Center
- (offline)
NSDL Website or UTI Website
- (online)
NSDL Website or TRACES website
Concern Treasury Offices
NSDL CRA
From Tax Payee (Employee/Contractor etc)
TDS Reconciliation Analysis and Correction Enabling System
GENERAL FEATURES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Statement Status
TDS Statement Justification Report
Consolidated File
Declaration of Non Filing of Statements
Request for Resolution (Online Ticketing System)
Tax Credit status of Tax Payee
Form 16/16A
Online and Offline Correction Filing
Tracking of Challan/BIN Status
Validation of Certificate u/s 197
Digital Signature Certificate (in case of Correction through TRACES
Tax Exemption Certificate (Certificate u/s 197)
•
Form No. 15G
Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to
be made by an individual or a person (not being a company or a firm) claiming certain
receipts without deduction of tax.
•
Form No. : 15H
Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made
by an individual who is of the age of sixty years or more claiming certain receipts without
deduction of tax
IMPORTANT WEBSITE
Income Tax
E-Filing
TRACES
NSDL
http://www.incometaxindia.gov.in
http://www.incometaxindiaefiling.gov.in
http://www.tdscpc.gov.in
https://www.tin-nsdl.com
OUR CONTACT INFORMATION
CAISIAS RESEARCH AND CONSULTING
TAX INFORMATION NETWORK – FACILITATION CENTRE
(TIN-FC) Managed by NSDL
MV-106, MISSION VENG
AIZAWL, MIZORAM – 796005
PH: 0389-2321164 MB: 9612503228
THANK YOU