TAX DEDUCTED AND COLLECTED AT SOURCE

HOW TO APPLY TAN NO. (TAX DEDUCTED AT SOURCE) WITH

LIVE

 To apply for a TAN (Tax Deducted at Source) number, you can follow these
steps:

 Visit the official website of the Income Tax Department of India

(https://www.incometaxindiaefiling.gov.in/)

 Click on the "TAN" link under the "Services" menu

 Click on the "Apply for new TAN" link

 Fill out the online application form with the required information, such as
your name, PAN, address, and details of the person authorized to sign the
TDS returns

 Upload any required documents, such as a copy of your PAN card

 Pay the TAN application fee online

 Submit the application

 You can check the status of your TAN application by logging in to the e-
Filing portal and clicking on the "View TAN Application Status" link.

Note: The TAN application process can be live via e-Filing portal which is the
official website of the Income Tax Department of India.

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HOW TO CALCULATE TDS ON SALARY WITH EXCEL SHEET

WITH ANNEXURES

 To calculate TDS (Tax Deducted at Source) on salary using an Excel sheet

with annexures, you can follow these steps:

 Create an Excel sheet with the following columns: "Particulars", "Amount",

and "TDS".

 In the "Particulars" column, list all the components of salary, such as basic
salary, HRA, conveyance allowance, etc.

 In the "Amount" column, enter the corresponding values for each component
of salary

 In the "TDS" column, use the formulas provided by the Income Tax
Department of India to calculate the TDS on each component of salary. The
formulas will vary depending on the type of allowance and the tax slab you
fall under.

CREATE ANNEXURES FOR THE TDS CALCULATION, SUCH AS THE FORM

16 AND FORM 26AS.

 Fill out the annexures with the required information, such as the employee's
name, PAN, TDS amount, etc.

 Finally, check your calculation and cross verify with the TDS slab and also
check your salary structure as per your company policy.

Note: It is important to ensure that the TDS calculation is done as per the Income
Tax Act and the rules and regulations set by the government of India.

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HOW TO CALCULATE TDS ON NON-SALARY WITH EXCEL

SHEET

 To calculate TDS (Tax Deducted at Source) on non-salary income using an

Excel sheet, you can follow these steps:

 Create an Excel sheet with the following columns: "Particulars", "Amount",

and "TDS".

 In the "Particulars" column, list all the sources of non-salary income, such as
rent, interest, capital gains, etc.

 In the "Amount" column, enter the corresponding values for each source of
non-salary income

 In the "TDS" column, use the formulas provided by the Income Tax
Department of India to calculate the TDS on each source of non-salary
income. The formulas will vary depending on the type of income and the tax
slab you fall under.

 Create annexures for the TDS calculation, such as Form 26AS, Form 16B
for rent, Form 16A for TDS on interest, TDS on capital gain etc.

Fill out the annexures with the required information, such as the PAN, TDS
amount, etc.

Finally, check your calculation and cross verify with the TDS slab and also check
your income structure as per the income tax act.

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Note: It is important to ensure that the TDS calculation is done as per the Income
Tax Act and the rules and regulations set by the government of India. It is also
important to keep track of all the TDS paid and TDS certificates received
throughout the financial year, to ensure that the TDS paid matches with the credit
received in Form 26AS at the time of filing the Income Tax Return.

HOW TO CALCULATE TDS ON PROPERTY(OTHER THAN

AGRICULTURE LAND) MORE THAN RS.50 LAKH WITH EXCEL
WORKING

 TDS (Tax Deducted at Source) is calculated on the sale of property (other

than agriculture land) if the sale value is more than Rs. 50 Lakh. The TDS
rate is 1% of the sale value.

 To calculate TDS on the sale of property in excel, you can use the following
formula:

 TDS = (Sale Value - Rs. 50 Lakh) * 1%

Where "Sale Value" is the total amount for which the property is sold, and "Rs.
50 Lakh" is the threshold limit.

Example:
If the sale value of a property is Rs. 60 Lakh, then the TDS will be calculated as
follows:
TDS = (60,00,000 - 50,00,000) * 1% = 10,000

 You can also use excel function like =MAX(0,(A1-5000000)*0.01) where

A1 is the cell having Sale Value, this will give you the TDS.

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HOW TO CALCULATE TCS ON SCRAP SALES WITH EXCEL

WORKING

TCS (Tax Collected at Source) is a tax that is collected by the seller at the time of
the sale of certain specified goods, such as scrap. The TCS rate for scrap is 0.1% of
the sale value.

 To calculate TCS on the sale of scrap in excel, you can use the following
formula:

 TCS = Sale Value * 0.1%

Where "Sale Value" is the total amount for which the scrap is sold.

Example:
If the sale value of scrap is Rs. 50,000, then the TCS will be calculated as follows:
TCS = 50,000 * 0.1% = 50

You can also use excel function like =A1*0.1% where A1 is the cell having Sale
Value, this will give you the TCS.

How to Calculate TCS on Purchase of Materials more than Rs. 50

Lakh with excel working U/s 206C(1H)

 To calculate TCS (Tax Collected at Source) on the purchase of materials

more than Rs. 50 Lakh in Excel, you can use the following formula:

 =IF(PURCHASE_AMOUNT>50000000,(PURCHASE_AMOUNT*0.01),0)

 Where "PURCHASE_AMOUNT" is the total cost of the materials being

purchased, and "0.01" is the TCS rate of 0.1% as per Section 206C(1H) of
the Income Tax Act.

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This formula checks if the purchase amount is greater than Rs. 50 Lakh, and if it is,
it calculates the TCS by multiplying the purchase amount by the TCS rate. If the
purchase amount is less than Rs. 50 Lakh, the formula returns 0.

Note: This is only a simple formula and there can be more factors that need to be
taken in consideration. TCS calculation and compliance is a complex matter and
professional guidance is recommended.

HOW TO CALCULATE TDS ON PURCHASE OF MATERIALS

MORE THAN RS. 50 LAKH WITH EXCEL WORKING U/S 194Q.

To calculate TDS on the purchase of materials over Rs. 50 lakh under Section
194Q, you can use the following steps in Excel:

Create a new sheet in Excel and name it "TDS Calculation."

In the first row, create the following column headings: "Date of Purchase,"
"Invoice Number," "Vendor Name," "Purchase Amount," and "TDS Amount."

Under the "Purchase Amount" column, create a formula to calculate the total
purchase amount for each invoice. You can use the SUM function to add up the
individual item prices for each invoice.

Under the "TDS Amount" column, create a formula to calculate the TDS amount
for each invoice. The TDS rate for purchases over Rs. 50 lakh is 0.1% (0.001), so
you can use the following formula: (Purchase Amount * 0.001).

To calculate the total TDS for all invoices, you can use the SUM function to add
up the individual TDS amounts for each invoice.

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Finally, create a formula to check whether the purchase amount of each invoice is
greater than Rs. 50 lakh. If so, apply the TDS rate of 0.1%, otherwise do not deduct
TDS.

Note: The above is an example of how you can calculate TDS using excel, it is
advisable to consult a Chartered Accountant or Tax Professional for any
compliance and compliance related issues.

LIVE FILING TDS & TCS - 3RD QUARTER – FY – 2022-23

To file TDS and TCS for the 3rd quarter of the financial year 2022-23, you can
follow these steps:

 Go to the official website of the Income Tax Department of India

(https://www.incometaxindiaefiling.gov.in/) and log in to your account using
your PAN and password.

 Click on the "e-File" tab and select "TDS/TCS" from the drop-down menu.

 Select "Quarterly" as the type of filing and choose "TDS/TCS Statement"

from the form type.

 Select "TDS/TCS Statement for the Quarter ending December 2022" as the
form type and choose the appropriate assessment year (2022-2023).

 Fill in the required details, including the TDS and TCS amounts, challan
details, and deductee/collectee details.

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 Verify the details and submit the form.

You will receive an acknowledgement number, which you should keep for future
reference.

Note: It is advisable to consult a Chartered Accountant or Tax Professional for

any compliance and compliance related issues.

HOW TO DOWNLOAD CHALLAN FIE (CSI FILE)

To download the Challan Status Inquiry (CSI) file, you can follow these steps:

 Go to the official website of the National Securities Depository Limited

(NSDL) (https://www.tdscpc.gov.in/)

 Log in to your account using your TAN (Tax Deduction and Collection
Account Number) and password.

 Click on the "Download" tab and select "Challan Status Inquiry (CSI)" from
the drop-down menu.

 Select the appropriate financial year and quarter for which you want to
download the CSI file.

 Select the "Download" button to download the CSI file in the CSV format.

 Once downloaded, open the file in excel and verify the Challan details.

Note: It is advisable to consult a Chartered Accountant or Tax Professional for

any compliance and compliance related issues.

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HOW TO VALIDATE AND GENERATE FVU FILE

To validate and generate a File Validation Utility (FVU) file, you can follow these
steps:

 Go to the official website of the NSDL (https://www.tdscpc.gov.in/) and

download the latest version of the FVU software.

 Install the software on your computer and run it.

 Click on the "Validate" button and select the TDS/TCS statement file that
you want to validate. The file should be in the format of Form 24Q, 26Q,
27Q, or 27EQ.

 Once the file is selected, the FVU software will validate the file and display
any errors or discrepancies found.

 Make necessary corrections to the file and re-validate the file.

 Once the file is successfully validated, click on the "Generate FVU" button
to generate the FVU file.

The FVU file is generated in a specific format, save the file and upload it to the
official e-Filing website of the Income Tax Department of India.

Note: It is advisable to consult a Chartered Accountant or Tax Professional for

any compliance and compliance related issues.

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HOW TO GIVE REQUEST & DOWNLOAD FOR CORRECTION IN

TRACES SITE(PAN MISTAKE, ADD CHALLAN, BILL AMOUNT
CHANGE, SECTION CODE CHANGE, MISSING INVOI CES ETC., )

To request and download a correction in the TRACES (TDS Reconciliation

Analysis and Correction Enabling System) site, you can follow these steps:

 Go to the official website of TRACES (https://www.tdscpc.gov.in/) and log

in to your account using your TAN (Tax Deduction and Collection Account
Number) and password.

 Click on the "Request for Correction" tab.

 Select the appropriate form type (e.g. Form 24Q, 26Q, 27Q, or 27EQ) and
the financial year and quarter for which you want to request a correction.

 Select the type of correction you want to request (e.g. PAN mistake, Add
Challan, Bill amount change, Section Code change, missing invoices, etc.).

 Fill in the required details for the correction and upload any supporting
documents (if applicable).

 Submit the request and take note of the acknowledgement number for future
reference.

After the request is processed, you will receive an e-mail notification and you can
download the corrected TDS/TCS statement from the TRACES website.

HOW TO CHECK ANY DEMAND IN TRACES SITE (CHECK IN

TRACES SITE)

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To check for any demand in the TRACES (TDS Reconciliation Analysis and
Correction Enabling System) site, you can follow these steps:

 Go to the official website of TRACES (https://www.tdscpc.gov.in/) and log

in to your account using your TAN (Tax Deduction and Collection Account
Number) and password.

 Click on the "Demand/Refund" tab.

 Select the appropriate financial year for which you want to check for any
demand.

 A list of demands, if any, will be displayed on the screen, which includes the
demand amount, the demand number, and the date of the demand.

 If there are any demands, you can download the demand notice by clicking
on the "Download" button next to the demand.

 You can also check the status of the demand by clicking on the "View
Status" button next to the demand.

 If you want to know the details of the demand, you can click on the "View
Details" button next to the demand.

HOW TO CHECK UNCONSUMED CHALLANS IN TRACES SITE

AND ALSO HOW TO UTILISE THE CONSUMED CHALLANS

To check for unconsumed challans in the TRACES (TDS Reconciliation Analysis

and Correction Enabling System) site, you can follow these steps:

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 Go to the official website of TRACES (https://www.tdscpc.gov.in/) and log

in to your account using your TAN (Tax Deduction and Collection Account
Number) and password.

 Click on the "Challan" tab.

 Select the appropriate financial year for which you want to check for
unconsumed challans.

 A list of challans will be displayed on the screen, which includes the challan
number, the date of the challan, and the status of the challan (Consumed or
Unconsumed).

TO UTILIZE A CONSUMED CHALLAN, YOU CAN:

● Use it to pay off any outstanding demand or refund

● Use it to pay off any outstanding TDS/TCS liability for the current financial
year
● To utilize an unconsumed challan, you can:
● Allocate it to a specific TDS/TCS statement for the current financial year
● Use it to pay off any outstanding demand or refund
● Use it to pay off any outstanding TDS/TCS liability for the current financial
year.

HOW TO DOWNLOAD FORM 16 (PART-A & PART-B), 16B, 16A &

27EQ ETC.,

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To download Form 16 (Part-A & Part-B), 16B, 16A, and 27EQ from the TRACES
(TDS Reconciliation Analysis and Correction Enabling System) site, you can
follow these steps:

 Go to the official website of TRACES (https://www.tdscpc.gov.in/) and log

in to your account using your TAN (Tax Deduction and Collection Account
Number) and password.

 Click on the "Downloads" tab.

 Select the appropriate form that you want to download (e.g. Form 16, 16A,
16B, 27EQ)

 Select the appropriate financial year and quarter for which you want to
download the form.

 Select the "Download" button to download the form in the PDF format.

 Once downloaded, you can print or save the form for your records.

Note: Form 16 is issued by the employer to the employee, it contains details of

TDS deducted, salary details etc. Form 16A is issued by the deductor to the
deductee. Form 16B is issued by the deductor to the deductee for TDS on sale of
immovable property. Form 27EQ is the TDS statement filed by the deductor.

HOW TO PAY MONTHLY TDS & TCS DEDUCTED & COLLECTED

AMOUNT TO GOVT. A/C THROUGH CHALLAN NO. 281 WITH
DETAILED EXPLANATION.

To pay the monthly TDS and TCS deducted and collected amount to the
government's account through Challan No. 281, you can follow these steps:

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 Go to the official website of the National Securities Depository Limited

(NSDL) (https://www.tdscpc.gov.in/)

 Click on the "Pay Taxes" tab and select "Challan No. 281 - TDS/TCS" from
the drop-down menu.

 Fill in the required details in the challan form, such as your TAN (Tax
Deduction and Collection Account Number), PAN (Permanent Account
Number), and the amount of TDS/TCS you wish to pay.

 Select the appropriate head of account under which the payment is being
made. (0044-Taxes on Income (Other than Company) for TDS and 0021-
Taxes on Income (Company) for TCS)

 Select the appropriate bank through which you wish to make the payment
and click on the "Submit" button.

 Review the details of the challan and click on the "Proceed to Payment"
button.

 You will be redirected to the bank's website, where you can make the
payment using your debit card, credit card, or net banking.

 After the payment is successful, you will receive a confirmation message

and a 14-digit Challan Identification Number (CIN) will be generated.

 You can use this CIN to track the status of your payment and download the
challan.

You can also use the CIN to file your TDS/TCS returns, and it will be
acknowledged by the Income Tax Department.

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SIMPLE WAY TO FIND WHETHER PAN NO. IS INDIVIDUAL,

FIRM OR COMPANY ETC.,

A simple way to determine whether a PAN number belongs to an individual, firm,

or company is by looking at the first character of the PAN number. The first
character of the PAN number indicates the entity type:

● "A" for Association of Persons (AOP)

● "B" for Body of Individuals (BOI)
● "C" for Company
● "F" for Firm
● "G" for Government
● "H" for Hindu Undivided Family (HUF)
● "L" for Local Authority
● "J" for Artificial Juridical Person
● "P" for Individual
● "T" for Trust
● "K" for Krish

FORM 27A EXCEL FORMAT ( THIS IS USEFUL WHILE FILE THE

RETURN)

Form 27A is a form used in India for filing income tax returns. It is an excel format
that is used to provide details of the tax paid and tax liability. It is typically used by
companies and organizations, and is usually filed along with Form 27B, which is a
statement of tax deducted at source. The excel format of Form 27A typically
includes fields for entering information such as the name and PAN of the taxpayer,
the assessment year, and details of the tax paid and tax liability. It is important to
ensure that the information entered in Form 27A is accurate and complete, as
errors or omissions can result in penalties or additional tax liability.

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HOW TO CALCULATE INTEREST ON LATE PAYMENT OF TDS &

TCS

The interest on late payment of TDS (Tax Deducted at Source) and TCS (Tax
Collected at Source) is calculated based on the rate specified by the Indian Income
Tax Act, and is calculated on a daily basis. The interest rate for late payment of
TDS is 1.5% per month or 18% per annum, and the interest rate for late payment of
TCS is 1% per month or 12% per annum.

 To calculate the interest on late payment of TDS or TCS, you can use the
following formula:

 Interest = (Outstanding TDS/TCS amount * Interest rate * Number of days

of delay) / 365

Where:
1. Outstanding TDS/TCS amount is the amount of TDS/TCS that was not
deposited on time.
2. Interest rate is 1.5% per month or 18% per annum for TDS and 1% per
month or 12% per annum for TCS.
Number of days of delay is the number of days between the due date for deposit of
TDS/TCS and the date on which it was actually deposited.
It is important to note that, if the TDS/TCS is not deposited within one year from
the due date, the department may initiate penalties and proceedings under section
271C or 271G.

HOW TO CALCULATE LATE FILING FEE BEFORE FILE

BELATED RETURN

The late filing fee for belated income tax returns in India is determined by the
Indian Income Tax Act and is based on the amount of tax payable. The late filing
fee is calculated as follows:

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 If the tax payable is up to Rs. 1,000, the late filing fee is Rs. 5,000

 If the tax payable is more than Rs. 1,000 but less than Rs. 10,000, the late
filing fee is Rs. 10,000

 If the tax payable is more than Rs. 10,000, the late filing fee is Rs. 10,000
plus 0.5% of the tax payable for every month of delay, subject to a
maximum of Rs. 1,50,000

 To calculate the late filing fee for a belated return, you will need to know the
following information:

 The tax payable on your income for the relevant assessment year

 The number of months of delay in filing the return

 You can then use the above information and the formula specified to
calculate the late filing fee. It is important to note that the late filing fee is in
addition to any interest or penalties that may be applicable for late payment
of taxes.

It is also important to note that the Income Tax Department has provided some
relief to the taxpayers due to the pandemics, the due date for filing belated return
for the assessment year 2020-2021 has been extended till 31st January 2022
without any late fee.

WHAT IS TDS & TCS AS PER ACT

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TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) are both forms
of tax collection in India, as per the Indian Income Tax Act.

TDS is a system of collecting tax at the source of income. As per the Act, person
responsible for making payment of specified nature to any other person is liable to
deduct TDS before making such payment. The person deducting TDS is known as
the deductor, and the person from whom TDS is being deducted is known as the
deductee. TDS is deducted at a specified rate and is deposited with the government
on a regular basis. Some examples of payments for which TDS is applicable
include salary, rent, commission, professional fees, and interest.

TCS (Tax Collected at Source) is a system of collecting tax at the point of sale of
certain specified goods or services. As per the Act, the seller of goods or services is
liable to collect TCS at the specified rate and deposit it with the government on a
regular basis. Some examples of transactions for which TCS is applicable include
the sale of scrap, the sale of certain types of motor vehicles, and the sale of
alcoholic liquor for human consumption.

Both TDS and TCS are aimed at ensuring regular collection of taxes and are one of
the ways government ensures compliance of tax laws. The person who is liable to
pay TDS or TCS is responsible for ensuring compliance with all applicable laws
and regulations, including the timely deposit of taxes with the government.

WHY TDS & TCS IS NECESSARY

TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) are both forms
of tax collection in India, as per the Indian Income Tax Act. These are necessary
for several reasons:

Regular collection of taxes: TDS and TCS help in regular collection of taxes, as the
taxes are deducted or collected at the source of income or point of sale,
respectively.
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Compliance with tax laws: TDS and TCS help in ensuring compliance with tax
laws, as the person who is liable to pay TDS or TCS is responsible for ensuring
compliance with all applicable laws and regulations, including the timely deposit
of taxes with the government.

Early detection of tax evasion: TDS and TCS help in early detection of tax evasion,
as the regular collection of taxes at the source of income or point of sale makes it
easier for the government to identify any discrepancies or discrepancies in tax
payments.

Avoidance of disputes: TDS and TCS help in avoidance of disputes, as the regular
collection of taxes at the source of income or point of sale makes it less likely that
disputes will arise between the government and taxpayers over the payment of
taxes.

Convenient way of tax collection: TDS and TCS provide a convenient way of tax
collection, as the taxes are deducted or collected at the source of income or point of
sale, respectively, rather than having to be paid by the taxpayer at a later date.

Overall, TDS and TCS are an efficient and effective way for the government to
collect taxes and ensure compliance with tax laws, while also providing
convenience for taxpayers.

WHEN TDS & TCS IS APPLICABLE AND DEDUCTI BLE

TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) are both forms
of tax collection in India, as per the Indian Income Tax Act. The applicability and
deductibility of TDS and TCS are determined by the Act and the rules and
regulations issued by the government.

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TDS is applicable and deductible on certain specified payments, as per the Indian
Income Tax Act. Some examples of payments for which TDS is applicable
include:

1. Salary income
2. Rent income
3. Commission
4. Professional fees
5. Interest income
6. Dividend income
7. Winning from lottery, crossword puzzles, horse races, etc.

TDS is also applicable on various other payments, depending on the nature of the
payment and the relevant sections of the Act. The person responsible for making
payment is liable to deduct TDS before making such payment, and the rate of TDS
is specified by the government.

TCS (Tax Collected at Source) is applicable and collectible on certain specified

goods or services, as per the Indian Income Tax Act. Some examples of
transactions for which TCS is applicable include:

1. Sale of scrap
2. Sale of certain types of motor vehicles
3. Sale of alcoholic liquor for human consumption
4. Sale of Timber obtained under a forest lease

TCS is also applicable on various other transactions, depending on the nature of

the transaction and the relevant sections of the Act. The seller of goods or services
is liable to collect TCS at the specified rate and deposit it with the government on a
regular basis.

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It is important for the person responsible for deducting TDS or collecting TCS to
be aware of their obligations and to ensure compliance with all applicable laws and
regulations.

TDS & TCS THRESHOLD LIMIT & RATES

TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) are both forms
of tax collection in India, as per the Indian Income Tax Act. The threshold limits
and rates for TDS and TCS are determined by the government and can vary
depending on the type of payment or transaction.

TDS threshold limit is the minimum limit up to which TDS is not deductible. The
threshold limit for TDS varies depending on the nature of payment and the section
of the Income Tax Act under which TDS is deductible. For example, for salary
income, TDS is not deductible if the salary paid or payable in a financial year is
less than the basic exemption limit.

TDS rates are the percentage of tax that is to be deducted from the payments on
which TDS is applicable. The TDS rates are specified by the government and vary
depending on the nature of payment and the section of the Income Tax Act under
which TDS is deductible. The TDS rate can range from 1% to 30%.

SECTION 195 OF INCOME TAX

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Section 195 is specifically there for TDS on payments other than Salaries, made to
Non-Residents, not being a company. Special rates for deducting TDS under
section 195 are:

1. Dividend–20%
2. Royalty–10%
3. Fees for technical services–10%
4. Interest (other than 194LB / 194LC / 194LD) –20%
5. Investment Income– 20%
6. Long-term capital gains from transfer of foreign exchange asset of non-
resident Indian (Section 115E) –10%
7. Long-term capital gains from unlisted shared (Section 112(1)(c)(iii)) –10%
8. Long-term capital gains from listed shares and securities (Section 112A) –
10%
9. Short-term capital gains from listed shares and securities (Section 111A) –
15%
10.Any other long-term capital gains –20%
11.Winnings from Card games, lotteries, crossword puzzles, and other games of
any sort, Horse races –30%
12.Any other income –30%

The above rates will be increased by education cess @4% and applicable
surcharge.

Similarly, TCS threshold limit is the minimum limit up to which TCS is not
collectible. The threshold limit for TCS varies depending on the nature of
transaction and the section of the Income Tax Act under which TCS is collectible.

TCS rates are the percentage of tax that is to be collected from the transaction on
which TCS is applicable. The TCS rates are specified by the government and vary
depending on the nature of transaction and the section of the Income Tax Act
under which TCS is collectible. The TCS rate can range from 0.1% to 5%.

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It's important to note that the threshold limits and rates are subject to change as per
the government's discretion, it is always a good practice to check the updated rates
on the official website of the Income Tax department or consult a professional

MONTHLY TDS & TCS PAYMENTS DUE DATES

The due dates for monthly TDS (Tax Deducted at Source) and TCS (Tax Collected
at Source) payments in India are determined by the Indian Income Tax Act and the
rules and regulations issued by the government.

As per the act, TDS payments are due on the 7th day of the next month for which
TDS is deducted. For example, if TDS is deducted in the month of January, the
TDS payment is due on the 7th of February. The deductor is also required to file
TDS return on or before the due date of filing the TDS return.

Similarly, TCS payments are due on the last day of the next month for which TCS
is collected. For example, if TCS is collected in the month of January, the TCS
payment is due on the last day of February. The collector is also required to file
TCS return on or before the due date of filing the TCS return.

It is important for the person responsible for deducting TDS or collecting TCS to
be aware of their obligations and to ensure compliance with all applicable laws and
regulations, including timely deposit of taxes with the government and timely
filing of returns. Penalties may be imposed for non-compliance or delayed
compliance with TDS or TCS laws and regulations.

QUARTERLY E-TDS & TCS RETURN DUE DATES

The due date for filing quarterly e-TDS (Tax Deducted at Source) and e-TCS (Tax
Collected at Source) returns is usually the 7th of the month following the end of

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the quarter. For example, the due date for the first quarter (April-June) is July 7th,
the second quarter (July-September) is October 7th, the third quarter (October-
December) is January 7th, and the fourth quarter (January-March) is April 7th.
However, it's always better to check the official website of the Income Tax
Department of India, as there might be some changes in the due date.

HOW TO DEDUCT CORRECT TDS % FROM THE DEDUCTED(S)

To deduct the correct TDS (Tax Deducted at Source) percentage from the amount
that has been deducted, you will need to refer to the TDS rates applicable for the
financial year in which the deduction was made. The TDS rate will vary depending
on the type of income and the category of the payee (individual, company, etc.).

Once you have determined the correct TDS rate, you can calculate the TDS
amount by multiplying the total income by the TDS rate. For example, if the total
income is Rs. 100,000 and the TDS rate is 10%, the TDS amount would be Rs.
10,000 (100,000 x 0.10).

It's important to note that TDS rates are subject to change from time to time and it's
the duty of the deductor to keep a track of the changes and deduct the TDS
accordingly.

Additionally, It's also important to ensure that the TDS is deposited to the
government within the due date to avoid any penalty or interest.

HOW TO COLLECT CORRECT TCS % FROM THE CUSTOMER(S)

To collect the correct TCS (Tax Collected at Source) percentage from customers,
you will need to refer to the TCS rates applicable for the financial year in which

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the collection is made. The TCS rate will vary depending on the type of transaction
and the category of the customer.

Once you have determined the correct TCS rate, you can calculate the TCS amount
by multiplying the total value of the transaction by the TCS rate. For example, if
the total value of the transaction is Rs. 100,000 and the TCS rate is 0.1%, the TCS
amount would be Rs. 100 (100,000 x 0.001).

It's important to note that TCS rates are subject to change from time to time and it's
the duty of the collector to keep a track of the changes and collect the TCS
accordingly.

As a collector, it's also important to ensure that the TCS is deposited to the
government within the due date to avoid any penalty or interest. Additionally, it's
also important to issue TCS certificate to the customer from whom TCS is
collected within the due date mentioned in the act.

NON-DEDUCTION OF TDS & TCS INTEREST

If TDS or TCS is not deducted or collected as per the applicable rates or not
deposited within the due date, the deductor or collector may be liable to pay
interest. The interest rate and calculation vary for TDS and TCS, and are defined
under the respective tax laws.

For TDS: If the deductor fails to deduct TDS or deducts TDS at a lower rate, he is
liable to pay interest at the rate of 1.5% per month or part of a month from the date
on which the TDS was deductible to the date of its actual deduction.

For TCS: If the collector fails to collect TCS or collects TCS at a lower rate, he is
liable to pay interest at the rate of 1% per month or part of a month from the date
on which the TCS was collectible to the date of its actual collection.

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It's important to note that the interest liability can be avoided if the TDS or TCS is
paid within 30 days from the date on which the TDS or TCS was deductible or
collectible.

Therefore, it's important to ensure that TDS and TCS is deducted and collected
correctly and deposited to the government within the due date to avoid any interest
or penalty.

LATE FILING FEE FOR NON-FILING THE RETURN(S)

TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) are taxes that
are collected by the government from various sources such as salary, interest, rent,
etc. If a person or organization fails to file their TDS or TCS return(s) on time,
they may be liable to pay a late filing fee.

The late filing fee for TDS and TCS returns depends on the amount of tax liability
and the duration of delay in filing the return(s). As per the Income Tax Act, the late
filing fee for TDS and TCS returns is as follows:

If the TDS or TCS return is filed within 1 year of the due date, a late filing fee of
Rs. 200 per day of delay (up to a maximum of the total tax liability) will be
charged.

If the TDS or TCS return is filed after 1 year of the due date, a late filing fee of Rs.
1000 per day of delay (up to a maximum of the total tax liability) will be charged.

It is important to note that the late filing fee for TDS and TCS returns is applicable
even if there is no tax liability or the tax liability is zero. Therefore, it is crucial to
file the TDS and TCS returns on time to avoid paying unnecessary late filing fees.

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HOW TO DOWNLOAD FREE TDS & TCS SOFTWARE FROM THE

SITE

To download free TDS & TCS software from the site, follow these steps:

 Go to the official website of the Income Tax Department of India

(https://www.incometaxindia.gov.in/)

 Click on the „e-Filing‟ tab on the homepage

 Under the „Downloads‟ section, click on the „TDS/TCS Returns‟ tab

 Click on the „Download Software‟ link for the relevant financial year

 Select the appropriate form (e.g. Form 24Q for TDS on salary) and
download the software

 Once the software is downloaded, install it on your computer and follow the
instructions to complete the installation process

 Once the installation is complete, you can use the software to prepare and
file your TDS and TCS returns.

Please note that the above steps may vary depending on the website from where
you are downloading the software. So, it's always recommended to check the

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official website of the Income Tax Department of India or the website of the
software provider before downloading the software.

HOW TO CHeCK WHETHER TDS & TCS PAYMENT(S) UPDATED

IN SITE OR NOT

To check whether your TDS and TCS payments have been updated in the site or
not, you can follow these steps:

 Go to the official website of the Income Tax Department of India

(https://www.incometaxindia.gov.in/)

 Click on the „e-Filing‟ tab on the homepage

 Under the „Services‟ section, click on the „View Tax Credit (Form 26AS)‟
tab

 Select the relevant assessment year and enter your PAN (Permanent Account
Number)

 Click on the „View‟ button to view your Form 26AS

In the Form 26AS, you will be able to see a detailed summary of your TDS and
TCS payments, including the date of deposit, the tax deducted/collected, and the
TAN (Tax Deduction Account Number) of the deductor/collector.

If you find any discrepancy in the TDS/TCS credit reflected in the Form 26AS,
you can contact the deductor/collector and ask them to rectify the error.

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Please note that it may take a few days for your TDS and TCS payments to be
updated in the system, so if you don't find your recent payment(s) in the system,
you can wait for a couple of days and check again later.

HOW TO DOWNLOAD UTILITY FOR DOWNLOAD THE FORMS.

 Go to the official website of the Income Tax Department of India

(https://www.incometaxindiaefiling.gov.in/home)

 Click on the "Downloads" tab on the top menu bar

 Under the "Downloads" section, click on the "Forms" option

 Scroll down to the "TDS/TCS Forms" section and select the form you wish
to download (e.g. Form 16, Form 26AS, etc.)

 Click on the "Download" button next to the form

 A PDF file will be downloaded to your computer. You can then open the file
and fill out the form as required.

Note: You may need to have a PDF viewer installed on your computer to open and
fill out the form.

Once you've completed the form, you can upload it on the official website of the
Income Tax Department of India by clicking on the "Upload" button.

1. BRIEF STEPS FOR DOWNLOADING FORM 16A

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Step 1: Login to TRACES website by entering the “User ID, Password, TAN of
the Deductor and the Verification Code”.

Step 2: Landing page will be displayed. Please check statement status under
„Statement /Payment Tab‟ before raising the request for Form 16A. Request for
Downloading Form 16A can only be submitted when Statement Status is either
Statement Processed with Default or Statement Processed without Default.

Step 3: Click on “Form 16A” available under “Download‟s” tab.

Step 4: Deductor can request for “Form 16A” through “Search PAN Download” or
“Bulk PAN” downloads option.

Step 5: Authorized Persons details to be printed on Form 16A will appear on the
screen, click on “Submit” to proceed further.

Step 6: Financial Year, Form type and Quarter for which KYC required will be
auto populated. Enter Token Number of the Regular (Original) Statement only,
corresponding to the Financial Year, Quarter and Form Type displayed. Enter CIN/
Valid PAN details pertaining to the Financial Year, Quarter and Form Type
displayed on the screen on the basis of latest correction statement filed by you.
Please DO NOT copy /paste the data. After providing correct KYC details, an
authentication code will be generated, which is valid for same calendar day for
same Financial Year, Form Type and Quarter.

Step 7: On successful submission of the request, a unique “Request number” will

be generated, which can be used to Track the status of the request. Form 16A can
only be downloaded if the status is “Available”, user needs to wait for 24- 48 hrs.
incase request is in “Submitted” status.

Step 8: Form 16A will be available in “Requested Download” tab; Deductor can
check the status of Form 16A by using below mentioned options:

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– Request Number – Date – View All

Step 9: Deductor can download Form 16A using “HTTP download” or “Download
Manager option”.
– HTTP Download is useful to download small files. It will directly download file
for the user
– Download Manager is useful to download large files and where internet
bandwidth is slow.
Status for the Request submitted for Form 16A can be :
a) Submitted: Successful submission, Request in processing
b) Available: Form 16A available for Downloading
c) Disabled: Duplicate request submitted for downloading
d) Failed: User are advised to contact CPC(TDS)
e) Not Available: All PAN no. mentioned in the statement are Invalid

Step 10: In order to convert Form 16A into PDF, Deductor should taxguru.in
download “Form 16A PDF Converter Utility 1.4 L”

2. IMPORTANT INFORMATION ON FORM 16A

 Form 16A is a TDS Certificate certifying the amount of TDS deducted,

Nature of Payments & the TDS
 Payments deposited with the Income Tax Dept.
 Form 16A downloaded ONLY from TRACES are considered as valid TDS
certificates, as per CBDT circular 04/2013 dated 17th April?2013.
 Form 16A is generated only for valid PAN. In case of invalid PAN or if the
PAN is not reported in TDS statement, Form 16A will not be generated.
 TDS certificates downloaded from TRACES are non-editable.
 Form 16A can be downloaded from F.Y 2007-08 onwards for the statement
processed by TRACES.

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 Deductor can download Form 16A by using HTTP Download or Download

manager accordingly once it is available.
 Downloaded file will be in ZIP format. Please do not Extract the File.
 Deductor need to convert the downloaded Form 16A zip file into PDF by
using latest version of PDF convertor utility available on TRACES.
 Authorized person of Deductor is required to Sign Form16A manually or by
Using DSC.
 DSC can be placed on Form 16A using PDF Generation utility while
taxguru.in converting Form 16 A Zip file into PDF.
 Password to open Form 16A is TAN number in Capital letters i.e.
ABCD12345E.

WHAT ARE ALL DOCUMENTS NEEDS TO BE SUBMITTED TO

INTEGRATED ENTERPRISES

The specific documents required to be submitted to an Integrated Enterprise will

vary depending on the nature of the business and the type of registration or
compliance being sought. However, some common documents that may be
required include:

1. PAN card of the enterprise and the directors

2. GST registration certificate, if applicable

3. Business registration documents such as the certificate of incorporation,

memorandum of association, and articles of association

4. Address proof of the enterprise, such as utility bills or lease agreement

5. Bank account details and cancelled cheque

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6. KYC of the directors and shareholders

7. Details of Statutory Auditors and Company Secretary, if any

8. Any other licenses or permits required for the specific type of business, such
as a FSSAI license for food businesses or a pollution control certificate for
manufacturing units.

It is important to check with the specific regulations and guidelines of the

integrated enterprise and the relevant authorities to ensure that all necessary
documents are submitted and that they are in the correct format and with correct
details.

FORM NO. 27Q & 26QC – EXPLAIN IN THEORY

Form 27Q and Form 26QC are forms used for TDS (Tax Deducted at Source)
returns in India. TDS is a system of collecting tax at the source of income, where
the person responsible for making the payment (the deductor) deducts a certain
percentage of the payment as tax and remits it to the government.

Form 27Q is used for TDS returns on salary income, while Form 26QC is used for
TDS returns on non-salary income. Both forms are to be submitted to the Income
Tax Department on a quarterly basis.

Form 27Q contains details such as the deductor's PAN (Permanent Account
Number), TAN (Tax Deduction and Collection Account Number), the amount of
TDS deducted, and the details of the deductee (the person whose income is being
paid).

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Form 26QC contains similar information, but is used for non-salary income such as
rent, commission, professional fees, etc.

Both forms are to be verified by the deductor and e-filed on the Income Tax
Department's e-filing portal. It is important to file these forms correctly and on
time to avoid any penalties or interest charges.

LOWER DEDUCTION OF TDS WITH EXEMPTION CERTIFICATE

An exemption certificate, also known as Form 15G and Form 15H, is a self-
declaration form that can be submitted to the deductor to claim lower deduction of
TDS (Tax Deducted at Source) on certain types of income. The form must be
submitted by the deductee (the person whose income is being paid) and contain
certain information, such as their PAN (Permanent Account Number) and the
amount of income being received.

Form 15G is for individuals below the age of 60 who want to claim lower TDS on
interest income, while Form 15H is for senior citizens (60 years or older) who want
to claim lower TDS on interest income.

The basic criteria for submitting Form 15G or 15H is that the total income of the
individual should be below the taxable limit. This means that if the individual's
taxable income after considering the income from all sources and deductions is
below the basic exemption limit, then only he can submit this form to claim lower
TDS.

It is important to note that the deductor is not required to accept the form and may
choose to deduct TDS at the applicable rate if they do not believe the information
provided in the form to be accurate. Also, if the individual subsequently discovers
that their income exceeds the taxable limit, they are required to inform the
deductor and pay any additional tax owed.

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