Same Payment Challan can be used for TDS under different Sections/ Heads Payments can be made for TDS against multiple Sections in a single challan. For example a payment against Sections 194A, 194C & 194J can be made together in a single challan. Unused Challan value can be used for future quarters/ financial years
Popular reasons for shifting out from outsourcing to preparing TDS Returns in-house: Based on a sample survey of around 100 organizations that shifted out of outsourcing, some of the popular cited reasons included the following: Receiving a number of Default Notices for earlier filed Returns On receiving Default Notices, low priority by the agency for…
Tips to avoid Defaults in TDS Returns § Make sure taxes are deducted on time and at correct deduction rates /amount. The applicable section under which the deduction falls should be correctly applied. § Tax needs to be deducted either when payment is made or when amount is credited, whichever is earlier. It implies that…
The Basic principles of TDS compliance are as follows Deduction of tax at correct rates at right time TDS needs to be deposited timely every month Correct reporting of the deduction/collection made Filing of the quarterly TDS return on time Issue of TDS certificates within stipulated time
All tax deductions for June 2017 need to be deposited latest by 7th July 2017 Filing of TDS Returns for the quarter ended June 2017 (FY:2017-18 Quarter 1) is already under way since 1st July and the last date is 31st July 2017 Last date for filing TCS return is 15th July Last date for…
If tax was deductible on 2nd June (i.e. at the time of giving credit or actual payment of the dues whichever is earlier) but was deducted on 3rd June then the interest charged would be 1% of the amount for the late deduction. Difference between Late Payment & Late Deduction Interest on Late Deduction of…
If the tax is deducted on 8th June it becomes due on 7th of next month i.e. 7th July (except for March for which it is 30th April), if this tax is deposited on 10th July to the government’s account i.e. not before 7th of July then it attracts interest at the rate of 1.5%…
The difference between late payment and late deduction: Late payment: After the tax is deducted at source it has to be deposited into the government account by 7th of the next month (except March for which it is 30th April). If it is deposited later than the due date, late payment interest is charged. The…
The due date for deduction is either at the time of giving credit or payment of the dues, whichever is earlier. Late deduction happens in the event the tax is not deducted when the deduction is due and is deducted at a later date. The interest for the delay in deduction is charged at the…
In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government. Interest @ 1.5% is liable to be paid…