1. TAX DEDUCTED AT SOURCE SECTION NATURE OF PAYMENT SALARY
INTEREST ON SECURITIES
194A INTT. OTHER THAN INTT. ON SECURITIES.
194B WINNING FROM LOTTERY/CROSS
WORD PUZZLE.
194BB WINNING FROM HORSE RACE.
194C PAYMENT TO CONTRACTOR/SUB CONTRACTOR.
194D INSURANCE COMMISSION
194E PAYMENT TO N.R SPORTSMEN/N.R
SPORTS ASSOCIATION.
194G COMM. ON SALE OF LOTTERY TICKETS.
194H COMM. OR BROKERAGE.
194I RENT
194J PROFESSIONAL OR TECHNICAL FEES

2. 192 - SALARY
ALL PERSONS WHO ARE EMPLOYERS ARE RESPONSIBLE TO DEDUCT TAX.
TYPE OF PAYEE – EMPLOYEE.
RATE OF TDS( SURCHARGE & EDUCATION CESS) – AS APPLICABLE TO THE INDIVIDUAL.
BASIC EXEMPTION APPLICABLE TO INDIVIDUAL /190000/

3. 192 - SALARY INCLUSION OF INCOME FROM OTHER HEADS –
THE EMPLOYER CAN CONSIDER INCOME FROM ANY OTHER HEAD BASED ON A DECLARATION STATEMENT DULY VERIFIED AND FILED BY THE EMPLOYEE BUT HE SHOULD NOT CONSIDER ANY LOSS OTHER THAN LOSS UNDER THE HEAD “ HOUSE PROPERTY ‘’.
RELEIF U/S 89 –
EMPLOYER SHOULD ALLOW RELEIF U/S 89 ON ARREAR OF SALARY OR GRATUITY OR VRS PAYMENT ON FILING A DECLARATION BY THE EMPLOYEE IN FORM 10 E.

4. DIGITAL SIGNATURE ON FORM 16
PROCEDURE FOR REFUND OF TDS FROM NON RESIDENT EMPLOYEES
REFUND OF EXCESS TDS REMITTED BY EMPLOYER
FOR GOVERNMENT EMPLOYEES-HRA EXEMPT
LIABILITY OF THE EMPLOYER
IMPORTANT BOARD
CIRCULARS

5. INTEREST ON NON – PAYMENT BY EMPLOYER AND EMPLOYEE
FOR NON –PAYMENT ALSO INTEREST IS THERE OH NO………
WHERE THE ASSESSE’S INCOME IS CHARGEABLE UNDER THE HEAD
SALARIES , PERSON RESPONSIBLE FOR PAYING ANY INCOME CHARGEABLE UNDER THE HEAD SALARIES SHALL AT THE TIME OF PAYING , DEDUCT TAX AT SOURCE AND FAILURE ON HIS PART ENTAILS AN OBLIGATION TO PAY INTEREST U/S 234B .
IN ORDER TO COMPENSATE LOSS INCURRED TO REVEUE AND THAT UPON FAILURE ON PART OF EMPLOYER TO DEDUCT THE TAX AT SOURCE , ASSESSE ONLY BECOMES LIABLE TO PAY TAX DIRECTLY U/S 191 AND DOES NOT LIABLE TO PAY INTEREST U/S 234B.

6. 193 – INTEREST ON SECURITIES
1) PERSON RESPONSIBLE FOR TAX DEDUCTION = CENTRAL OR STATE GOVT.
, LOCAL AUTHORITY, COMPANY OR CORPORATION ESTABLISHED BY CEN-
TRAL OR STATE GOVERNMENT.
2) CATEGORY OF PAYEE: ANY PERSON BEING RESIDENT.
3) RATE OF DEDUCTION OF TAX : RESIDENT NON –CORPORATE ASSESSE &
DOMESTIC COMPANIES-10%.
4) NO TDS : 1). INTEREST ON LISTED SECURITIES OF A COMPANY, IF SUCH SECU-
RITIES ARE IN DEMATERIALIZED FORM.(W.E.F ).
2). IN CASE OF DEBENTURES ,PAYMENT OF INTEREST TO RESIDENT
INDIVIDUALS –
- ISSUED BY A COMPANY IN WHICH PUBLIC ARE SUBSTANTIA-
LLY INTERESED.
- LISTED IN A RECOGNISED STOCK EXCHANGE IN INDIA , AND
- THE INTEREST IS PAID BY ACCOUNT PAYEE CHEQUE.
- INTEREST PAID DURING THE FINANCIAL YEAR DOES NOT EXCEED
RS.2500/-.
5). NO DEDUCTION ON PAYMENT TO NEW PENSION TRUST.
6). OTHER INTEREST NOT LIABLE FOR TDS U/S 193.

7. NON DEDUCTION OF TAX ON SELF DECLARATION
DEEP DISCOUNT BONDS-AT THE TIME OF REDEMPTION
DEEMED CREDIT- INTEREST IS CREDITED IN ANY ACCOUNT.

8. 194A – TDS ON INTEREST OTHER THEN SECURITIES
1). PERSON RESPONSIBLE TO DEDUCT TAX – ALL ASSESSES OTHER THAN INDIVIDUAL AND HUF WHOSE ACCOUNTS ARE NOT SUBJECT TO AUDIT U/S 44 AB OF THE ACT DURING THE PRECEDING FINANCIAL YEAR.
2). CATEGORY OF PAYEE - ANY RESIDENT IN INDIA.
3). RATE OF DEDUCTION OF TAX - NON- CORPORATE ASSESSEES AND DOMESTIC COMPANIES – 10%.
4). EXEMPTION LIMIT - * RS.10000/-,IF PAYMENT MADE BY BANKING
CO.COPERATIVE SOCIETY, POST OFFICE.
* RS.5000/-,PAYMENT MADE BY OTHER PERSON.
* INT. ON ZERO COUPON BOND – PAID BY INFRA.
co. fund.

9. Important issue regarding – 194a
TDS REQUIRED WHEN CREDIT MADE IN BOOKS - WHENEVER INTEREST IS CREDITED TO THE ACCOUNT OF THE PAYEE , PAYER HAS TO DEDUCT TAX AT SOURCE U/S 194A. LOAN TAKEN BY THE DIRECTORS IN THEIR INDIVIDUAL CAPACITIES ALONG WITH INTEREST IS ROUTED THROUGH THE COMPANY, THE COMPANY IS BOUND TO DEDUCT TAX AT SOURCE.
TDS ON GROSS RECEIPTS - DEDUCTION TO TAXES TO BE MADE FROM THE GROSS RECEIPTS AND NOT NET INTEREST PAYABLE AFTER MUTUAL SET OFF.

10. MULTIPLE PAYMENTS- SINGLE DECLARATION CO-OPERATIVE BANKS
IMPORTANT ISSUES.
DEPOSIT IN JOINT NAMES
MULTIPLE PAYMENTS- SINGLE DECLARATION
CO-OPERATIVE BANKS
COMMULATIVE DEPOSITS/DEBENTURES/BONDS

11. 194 B- WINNING FROM LOTTERY/CROSSWORD PUZZLE
1. PERSON RESPONSIBLE TO DEDUCT TAX - ANY PERSON PAYING THE SUM
BY WAY OF WINNING FROM LOTTERY, CROSSWORD PUZZLE, CARD GAME OR GAME OF ANY SORT.
2. CATEGORY OF PAYEE :- ALL ASSESSES.
3. RATE OF DEDUCTION OF TAX :- 30%
4. EXEMPTION LIMIT :- IF THE PAYMENT DOES NOT EXCEED RS /-.WHERE
THE AMOUNT EXCEEDS RS.10000/-, THE ENTIRE AMOUNT PAID SO FAR IS SUBJECT IS TOTDS.
FOR EXAMPLE:-
PARTLY IN CASH OR IN KIND
R WINS A MOTOR CAR IN A LUCKY DRAW HELD BY G. LTD.THE MARKET PRICE OF THE CAR RS /- IN THIS CASE BEFORE GIVE CAR TO R, GLTD.WILL ENSURE THAT RS 90000
OF TAX HAS BEEN PAID BY R OR RECOVERED FROM HIM BEFORE THE CAR IS GIVEN TO HIM
IN CASE G, DOES NOT DO SO, THEN GLTD. HAVE TO PAY TDS ITSELF:
GROSS UP THE DRAW AMOUNT WHICH SHALL BE:
300000*100/70 = RS
THE TAX TO BE DEDUCTED SHALL BE = *30%= RS

12. 194 BB – WINNING FROM HORSE RACE
1. PERSON RESPONSIBLE TO DEDUCT TAX - ANY PERSON BEING LICENSED BY THE GOVERNMENT OR A LICENSED BOOKMAKER.
2. CATEGORY OF PAYEE :- ALL ASSESSES.
3. RATE OF DEDUCTION OF TAX :- 30%
4. EXEMPTION LIMIT :- IF THE PAYMENT DOES NOT EXCEED RS. 5000/-.IF EACH PAYMENT EXCEEDS RS. 5000/-, THEN ENTIRE AMOUNT SHALL BE LIABLE FOR TDS U/S 194 BB.

13. 194 C – TDS ON PAYMENT TO CONTRACTORS
1. PERSON RESPONSIBLE TO DEDUCT TAX:- ALL ASSESSES INCLUDING FORIGN ENTERPRISES & GOVT. ( EXCEPT INDIVIDUALS, AOP. BOI, HUF, WHO ARE SUBJECT TO AUDIT U/S 44AB DURING PRECCEDING FINANCIAL YEAR).
2. TYPE OF PAYEE :- ANY PERSON RESIDENT IN INDIA
4. RATE OF DEDUCTION:- (a) FOR INDIVIDUAL AND HUF- 1%.
(b) FOR OTHERS – 2%.
(c) IF DOES NOT QUOTED PAN OR WRONG PAN
MENTIONED THEN -20%.
4. EXEMPTION LIMIT:- - RS 30000/- PER CONTRACT VALUE OR CREDIT LESS THAN .
- RS 75000/- P.A IN AGGREGATE AND,
- SMALL TRANSPORTERS MATERIAL VALUE IF SEPRATELY
SHOWN IN INVOICE.

14. IMPORTANT ISSUES 1. CONTRACT FOR SALE - NO TDS
2. SUPPLY OF PACKING MATERIAL: NO TDS
3. TDS ON PAYMENTS TO TV CHANNELS:- CABLE TV OPERATOR IS LIABLE TO DEDUCT TDS ON PAYMENTS MADE TO TV CHANNELS U/S 194C.
4. FACILITIES OR AMENTIES PROVIDED BY HOTELS:- NOT COVERED UNDER
MEANING OF THE WORK , PROVISION OF TDS SHALL NOT ATTRACT.
5. CONTRACT FOR HIRING OR RENTING EQUIPMENTS:- EXEMPT.
6. PAYMENT MADE TO AIRLINES OR TRAVEL AGENTS FOR PURCHASE OF TICKETS FOR AIR TRAVEL OF INDIVIDUALS- EXEMPT.
7. ASSESSES WHOSE GROSS TURNOVER EXCEEDS RS. 60 LAKHS DURING THE PREVIOUS YEAR ARE SUBJECT TO AUDIT U/S 44AB.

15. SPECIAL CONSIDERATIONS IN RESPECT OF ADVANCE PAYMENTS AND REIMBURSEMENT OF EXPENSES
ADVANCE PAYMENTS COVERED U/S 194C – WHERE ADVANCE PAYMENTS ARE MADE IN THE COURSE OF A CONTRACT COVERED BY SECTION 194C, TDS SHOULD BE DEDUCTED FROM SUCH ADVANCE PAYMENTS ALSO.
MATERIALS SUPPLIED BY CONTRACTEE TO BE INCLUDED:- IN CASE OF COMPOSITE WORKS CONTRACT TO THE GOVERNMENT OR OTHER SPECIFIED PERSON, THE MATERIAL NECESSARY FOR WORK MAY BE SUPPLIED AT A TIPULATED PRICE BY THE CONTRACTEE. HOWEVER , FOR SECTION 194C PURPOSES, THE DEDUCTION SHOULD BE BASED ON THE GROSS PAYMENT INCLUDING THE COST OF MATERIALS.
3. REIMBURSEMENT OF ACTUAL EXPENSES TO BE INCLUDED:- SEC 194C & 194J REFER TO ANY SUM PAID. HENCE TAX SHOULD BE DEDUCTED ON THE GROSS AMOUNT OF THE BILL INCLUDING THE CLAIM OF REIMBURSEMENT OF ACTUAL EXPENSES.
4. INCLUSIVE OF SERVICE TAX:- AMOUNT ON WHICH TDS HAS TO BE MADE IS PAYMENT INCLUSIVE OF SERVICE TAX.

16. 194 D- TDS ON PAYMENT OF INSURANCE COMMISSION
1. PERSON RESPONSIBLE TO DEDUCT TAX:- INSURANCE COMPANIES.
2. CATEGORY OF PAYEE:- RESIDENT ASSESSE.
3. RATE OF DEDUCTION OF TAX:- NON- CORPORATE ASSESSE AND DOMESTIC COMPANIES- 10%.
4. EXEMPTION LIMIT:- (a) AMOUNT OF PAYMENT IN AGGREGATE NOT
EXCEEDING RS /-, DURING THE F. Y.
(b) NO DEDUCTION ON PAYMENT TO NEW
PENSION TRUST.

17. 194 E- PAYMENT TO N.R SPORTSMEB/ N.R SPORTS ASSOCIATION
1. PERSON RESPONSIBLE TO DEDUCT TAX:- ANY PERSON.
2. TYPE OF PAYEE:- N.R SPORTSMEN/ N.R SPORTS ASSOCIATION.
3. RATE OF TDS: %.
4. AMENDMENT:- (W.E.F THE RATE OF TDS INCREASE TO 10% TO
20% OF THE GROSS RECEIPT).

18. 194 G- TDS ON COMMISSION ON SALE OF LOTTERY TICKETS
1. PERSON RESPONSIBLE TO DEDUCT TAX:- ANY PERSON.
2. CATEGORY OF PAYEE:- ANY PERSON STOCKING, PURCHASING OR
SELLING LOTTERY TICKETS.
3. RATE OF DEDUCTION OF TDS:- FOR ALL ASSESSES- 10%.
4. EXEMPTION LIMIT:- NO TDS- IF PAYMENT NOT EXCEEDING RS. 1000/-.
IF PAYMENT EXCEEDS RS. 1000/-, THEN TDS TO BE
MADE ON THE ENTIRE PAYMENT.

19. 194 H – TDS ON COMMISSSION AND BROKERAGE
PERSON RESPONSIBLE TO DEDUCT TAX:- ALL ASSESSES ( EXCEPT
INDIVIDUAL AND HUF WHO ARE NOT SUBJECT TO AUDIT U/S 44AB
DURING PRIOR P.Y).
CATEGORY OF PAYEE:- ANY PERSON RESIDENT IN INDIA.
3. RATE OF DEDUCTION OF TAX:- 10%.
EXEMPTION LIMIT:- AGGREGATE AMOUNT DOES NOT EXCEED
RS. 5000/-, DURING THE F.Y.

20. 194 I – TDS ON RENT
1. PERSON RESPONSIBLE TO DEDUCT TAX:- ALL ASSESSES ( EXCEPT
INDIVIDUAL AND HUF WHO ARE NOT SUBJECT TO AUDIT U/S 44AB
DURING PRIOR P.Y).
CATEGORY OF PAYEE:- ANY PERSON RESIDENT IN INDIA.
RATE OF DEDUCTION:- (a) PLANT & MACH., EQUIPMENT – 2%.
(b)LAND & BUILDING , FURNITURE & FITTING – 10%
EXEMPTION LIMIT:- RS /-, IN A F.Y IN AGGREGATE( CONSIDERING
ALL NATURE OF INCOME COVERED U/S 194I).
5. NO TDS:- - THE PAYEE IS GOVT. OR LOCAL AUTHORITY.

21. IMPORTANT ISSUES IF PAYEE IS GOVT., THEN NO TDS ON RENT
LANDING,PARKING CHARGES- SEC APPLIES
NO TDS ON SERVICE TAX COMPONENT
IF PAYEE IS GOVT., THEN NO TDS ON RENT
COOLING CHARGES FOR COLD STORAGE – 194C APPLY ONLY NOT 194I.
ROOMS TAKEN ON REGULAR BASIS- SEC APPLY
TDS NOT DEPOSITED AND TDS ON ARREARS OF RENT.

22. 194 J – TDS ON FEES FOR PROFESSIONAL/TECHNICAL SERVICES
1. PERSON RESPONSIBLE TO DEDUCT TAX:- ALL ASSESSES ( EXCEPT
INDIVIDUAL AND HUF WHO ARE NOT SUBJECT TO AUDIT U/S 44AB
DURING PRIOR P.Y).
CATEGORY OF PAYEE:- ANY PERSON RESIDENT IN INDIA.
3. PAYMENTS COVERED:- (a) FEES FOR PREOFESSIONAL SERVICES OR,
(b) FEES FOR TECHNICAL SERVICES OR,
(c) ROYALTY OR,
(d) PAYMENT REFERRED U/S 28(1) i.e sum received
for not carrying out any activity or not sharing any
know-how, patent etc.
RATE OF DEDUCTION OF TAX:- 10%(TDS made on total payment inclusive of
service tax).
5. EXEMPTION LIMIT:- RS /- IN A F.Y FOR EACH NATURE OF PAYMENT.

23. IMPORTANT ISSUES TPA/ MEDICAL INSURANCE PAYMENTS
REIMBURSEMENT OF ACTUAL EXPENSES TO BE INCLUDED
TPA/ MEDICAL INSURANCE PAYMENTS
MOBILE NOT COVERED BY 194J
TDS ON INTER- CONNECTION
INTERCONNECTION/ PORT CHARGES

24. FORM OF TDS CERTIFICATE
Time of deduction
SEC 192,194B,194BB,194LA:- TDS SHALL BE DEDUCTED AT THE
TIME OF PAYMENT.
SEC 193,194A,194C,194D,194G,194H:- TDS SHALL BE DEDUCTED
,194I,194J,195,196B,196C,196D,194LB EITHER AT THE TIME OF
PAYMENT OR AT THE TIME
OF CREDIT WHICHEVER
FALLS EARLIER.
FORM OF TDS CERTIFICATE
FORM 16 FOR SALARY – SECTION 192.
2. FORM 16A – FOR ALL OTHER SECTIONS

25. TIME OF REMITTANCE TO THE GOVT. – SEC 200/RULE30.
TAX DEDUCTED BY OR ON BEHALF OF THE GOVT.
SITUATION
TIME OF DEPOSIT OF TDS
- Payment of tax without production of Income tax Challan.
On the same day when Tax is deducted.
- Payment of tax accompanied by an Income tax Challan.
On or before 7 days from the end of the month in which the deduction is made or income tax is due u/s 192 1(a).
TAX DEDUCTED BY OTHER PERSON
- Income or amount is credited or paid in the month of march.
On or before the 30th April.
- In any other case.
On or before 7 days from the end of the month in which:-
Deduction is made or,
Income Tax is due u/s 192 1(a).

26. Special permission for quarterly remittance of tds.
The Assessing Officer may in special cases, with the approval of JCIT, permit the payment of TDS on quarterly basis as under:-
Applicable sec: , 194a,194d, 194h.
Payment Date:- July 7th, Oct. 7th, Jan.7th, April 30th.
TIME FOR ISSUE OF TDS CERTIFICATE
FORM NO.
PERIODICITY
TIME LIMIT 16
Annual
By 31st may of F.Y immediately following the F.Y in which the income was paid and tax deducted.
16 A
Quarterly
Within 15 Days from the due date for furnishing the statement of TDS , i.e 30th July, 30th Oct, 30Th Jan, and 30th May.

27. Quarterly statement / return & due date
SECTIONS
192
193 to 196D
FORM NO.
24Q
27Q for N.R, not being a co., or foreign co. , or RNOR.
26Q for all other deduction.
DUE DATE IF THE DEDUCTOR IS AN OFFICE OF GOVT.
31st July, 31st Oct, 31st Jan, In respect of first three quarters of the F.Y and on or before 15th May for the last quarters of the F.Y.
DUE DATE FOR OTHER PERSON
15TH July, 15th Oct, 15th Jan, in respect of first three quarters of the F.Y and on or before 15th May for last quarter of the F.Y.
FORM 27 A
The above forms shall be accompanied by declaration in form 27A.

28. INTEREST / PENALTY AND PROSECUTION
INTEREST:- Simple per month or part of the month
from the date on which Tax is to be deducted to the
date it is paid.
PENALTY:- Failure to deduct whole or part of the Tax shall be
liable for penalty of Rs. 200/- per day of default up to
Tax not deducted.
PROSECUTION:- Rigorous Imprisonment for minimum of 3
month & maximum of 7 years.

29. Presented by
J.R