3 Simple Steps for Tax Deductors to follow

Below are the three simple steps for Tax Deductors to follow in case of TDS and TCS:

1. Deduct

• Correct TDS while making payment as required by law
• Deduct tax at higher rate in case valid and correct PAN of deductee is not available with you

Failure to deduct /collect tax at source shall result in penalty equal to the amount of tax failed to be deducted/collected.

2. Deposit

i) Non Government Deductors to deposit:

The tax deducted within 7 days from the end of the month in which deduction was made and by 30^th April, 2015 where deduction (Other than deduction u/s 194IA) was made in the month of March, 2015.

ii) Government Deductors to deposit:

The tax deducted at source on the same day in case of book transfer & by 7^th of the following month if using challan

Non-deposit of tax deducted / collected to the Government account shall invite Prosecution.

3. Issue

TDS certificate in Form 16A on income other than salary for the quarter ended on 31^st March, 2015 by 30^th May, 2015

TDS certificate in Form 16 for the financial year ended on 31^st March, 2015 by 31^st May, 2015

Delay in issue of TDS certificate shall result in penalty of Rs. 100/- for each day of default not exceeding amount of tax deductible/collectible.