It was introduced to collect tax at the source from where an individual's income is generated. It is a type of tax which comes under the category of indirect tax. There is due date for submission of Tax Deducted at source. It can be paid online through TRACES or software.
This is only applicable to those who earn income from any source. As per the Income Tax Act, 1961, the act states before making payment you have to check the applicability of TDS of service provider. If the subscriber falls as per TDS rule then it’s the responsibility of service receiver to deduct TDS on his payment as per government prescribed rules.
TDS Service Threshold
As per Income Tax Act, 1961 some payment terms have been classified for deductor such as salary, bonus, commission, FD interest, rent, contract service etc.
Section |
Threshold Limit* |
TDS Rate |
Section 192 |
As per applicable income slab |
As per income tax slab rate |
Section 193 |
5000/- for debenture payment |
10% of the interests earned on security investments. |
Section 194 |
2500/- |
10% of proceeds from any deemed dividend |
Section 194A |
10000/- |
10% of proceeds from interests earned on investments other than securities |
Section 194B |
10000/- |
30% of prize money on lottery or gaming related winnings |
Section 194BB |
10000/- |
30% of prize money from horse racing |
Section 194C |
30000/- |
Proceeds from any contracts / sub contracts |
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which is for each contract, whereas 100,000 is for p.a. |
• Individuals or HUF @ 1% |
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• Non-Individual/corporate @ 2% |
Section 194D |
15000/- |
5% of earning as insurance commissions |
Section 194EE |
2500/- |
20% of expense in NSS deposits |
Section 194F |
NIL |
20% of investment in MF or UTI units |
Section 194G |
15000/- |
5% of the commission money from lottery ticket selling. |
Section 194H |
15000/- |
5% of the brokerage earnings |
Section 194I |
180000/- |
2% on rental amount of plant & machinery/ |
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|
10% on the rent of land & building |
Section 194J |
30,000/- p.a. |
10% on the technical/professional services |
Section 194LA |
250000/- |
10% on the transfer money paid to any resident while acquiring an immovable property |
Service Provided by Corpseed |
A) Preparing Data for TDS Return and Payment |
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B) Challan Payment monthly (online) |
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C) Return for Quarterly |
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D) Form 16 |
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E) Form 16A |
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F) Yearly Filling |
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G) Data Preparing TDS |
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H) TDS challan payment |
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I) TDS Return |
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Monthly |
|
|
Rate |
2000 |
|
GST |
360 |
|
Total |
2360 |
|
Charged Annually |
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|
Base amt |
24000 |
|
Tax amt |
2400 |
|
Total amt. |
21600 |
|
Benefit % if subscribed annually |
10% |
|
Benefit amt if subscribed annually |
21600.1 |
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