Interest Payments Other Then Banks - Section 194A

Threshold

For interest payment to individuals and Hindu Undivided Families (HUFs), TDS is applicable if the interest amount exceeds Rs. 10,000 in a financial year

TDS Rate
The TDS rate for interest payments to individuals and HUFs is 10%. For other entities, the rate remains 10% as well.

Contractor Payment Thresholds: Single vs. Annual Considerations - Section 194C

Single Transaction Threshold
For a single payment made to a contractor, TDS is applicable if the payment exceeds Rs. 30,000. The TDS rate is 1% for individuals and HUFs, and 2% for other entities.

During the Financial Year
If the total payments made to a contractor during the financial year exceed Rs. 100,000,TDS is applicable at a rate of 1% for individuals and HUFs, and 2% for other entities

Key TDS Rates: When and How Much TDS Applies

Rental Income: Plant, Machinery, and Property - Section 194I

Plant and Machinery
If monthly or part-monthly rent for plant and machinery exceeds Rs. 50,000, TDS is applicable at 2% for both individuals and HUFs, and other entities.

Land, Building, and Furniture
For annual rent from land, buildings, and furniture exceeding Rs. 6 lakh, TDS is applicable at 10% for both individuals and HUFs, and other entities

Technical Services and Professional Fees Taxation-Section 194J

Technical Services (Incl. Call Centres, Royalty, Film Distribution) → 2% TDS (Above ₹50,000) Covers IT, engineering, consultancy, etc.

Fees - All other Professional Services
TDS is applicable for Fees - All other Professional Services if the payment exceeds Rs. 50,000.

TDS Filing – Applicable Persons

TDS filing is mandatory for the following entities if they have deducted TDS:

• Employers & Businesses

  Companies (Private & Public)

  Partnership Firms & LLPs

  Sole Proprietors (if turnover exceeds tax audit limit)

  Hindu Undivided Families (HUFs) with tax audit applicability

• Government & Organizations

  Central & State Government Departments

  Local Authorities & Municipalities

  Co-operative Societies & Trusts

• Individuals & Professionals

  Individual professionals (lawyers, doctors, consultants) if under tax audit

  Housing Societies deducting TDS on vendor payments

You Applicable Persons !!

Other TDS Rates & Income Tax Deduction at Source

Note: TDS Rates without PAN – 20% flat (if TDS is lower than 20%)

TDS Return and the Associated Forms

TDS return is a statement issued after successful payment of the taxes, containing all the transactions mentioned towards TDS deduction made during a quarter. It is issued by the payer and submitted to the Income Tax Department of India.

Tax returns contain all TDS deduction details collected by the payer, as well as other essential information like the Permanent Account Number of the payer and payee and other particulars regarding the payment made to the Government of India. It also collects TDS challan information.

There are several forms associated with TDS returns; the following table contains its relevant details.

TDS Return Filing & Due Dates

Quarter

Quarter Period

TDS Return Due Date

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

1st Apr to 30th Jun

1st Jul to 30th Sep

1st Oct to 31st Dec

1st Jan to 31st Mar

31st Jul

31st Oct

31st Jan

31st May

TDS Deposit Due Dates :-

For Non-Government Deductors

• 7th of next month for all months except March

• For March → 30th April

Quarter

Quarter Period

TCS Return Due Date

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

1st Apr to 30th Jun

1st Jul to 30th Sep

1st Oct to 31st Dec

1st Jan to 31st Mar

15th July

15th Oct

15th Jan

15th May

TCS Return Filing & Due Dates

TCS Deposit Due Dates :-

• 7th of next month for all months except March

• For March → 30th April

TCS Rate Chart for FY 2025-26 (AY 2026-27)

Due Date for Form 15G/15H Submission

Forms:

Form 15G → For individuals below 60 years

Form 15H → For senior citizens (60+ years)

Purpose:

Submitted to avoid TDS deduction on interest income if total income is below the taxable limit.

TDS Late Payment & Penalties

1. Late deposit of TDS

   Penalty/Interest -1.5% per month on the amount from the date of deduction

2. Late filing of TDS return

   Penalty/Interest- Rs 200 per day (up to the TDS amount)

3. Failure to deduct TDS

   Penalty/Interest- Interest @ 1% per month

4. Failure to issue TDS certificate

   Penalty/Interest-Penalty of Rs 100 per day (up to Rs 5,000)

• Digitally sign Form 16/16A

What We Do

• Online TAN/AIN Registration

• Identify wrong PAN

• Prepare E-TDS/TCS returns & correction in Form no. 24Q, 26Q, 27Q, 27EQ, 26QA

• Calculate monthly TDS amount to be deducted

• Generate MIS Reports - Challan and Return Status Report

• Import Excel and Conso files for adding deductors, deductees, challans etc

• Generate TDS/TCS certified(s) in Form no 12BA, 16, 16AA, 27D

• Generate MIS Reports - Challan and Return Status Report

Fastest and Easiest Way to eTDS Solution!