TDS Compliance

TDS Compliance

TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments.

Usually, the person receiving income is liable to pay income tax. But the government with the help of Tax Deducted at Source provisions makes sure that income tax is deducted in advance from the payments being made by you.

The recipient of income receives the net amount (after reducing TDS). The recipient will add the gross amount to his income and the amount of TDS is adjusted against his final tax liability. The recipient takes credit of the amount already deducted and paid on his behalf.

Documents Required for TDS Compliance

  • TDS challans copy deposited during the month
  • Details of vendors on which TDS is deducted during the month
  • Pan numbers of all vendors on which TDS is deducted during the month
  • Details of Proprietor / Directors / Partners who are authorized to sign TDS returns Like Name , Address, Pan number and Digital Signature

TDS Compliance Inquiry Form

[everest_form id=”1274″]

When should TDS be deducted and by whom?

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

However, in case of rent payments made by individuals and HUF exceeding Rs 50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not liable for a tax audit. Also, such Individuals and HUF liable to deduct TDS @ 5% need not apply for TAN.

Your employer deducts TDS at the income tax slab rates applicable. Banks deduct TDS @10%. Or they may deduct @ 20% if they do not have your PAN information. For most payments rates of TDS are set in the income tax act and TDS is deducted by payer basis these specified rates.

If you submit investment proofs (for claiming deductions) to your employer and your total taxable income is below the taxable limit – you do not have to pay any tax. And therefore no TDS should be deducted on your income. Similarly, you can submit Form 15G and Form 15H to the bank if your total income is below taxable limit so that they don’t deduct TDS on your interest income.

In case you have not been able to submit proofs to your employer or if your employer or bank has already deducted TDS and your total income is below the taxable limit) – you can file a return and claim a refund of this TDS.

The complete list of Specified Payments eligible for TDS deduction along with the rate of TDS.

TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)

Section Nature of payment Threshold Limit Applicable from 01/04/2020 to 13/05/2020 Applicable from 14/05/2020 to 31/03/2021
      Resident Non-resident * Resident Non-resident *
    Rs.  TDS Rate (%) TDS Rate (%) TDS Rate (%) TDS Rate (%)
192 Salaries Normal slab rate Normal slab rate Normal slab rate Normal slab rate
192A Premature withdrawal from EPF 50000 10 10 10 10
194C Contractor-Single



30000 1




194C Contractor – Consolidated Payment During the F.Y.

– Individual/HUF

– Others






194H Commission/Brokerage 15000 5 3.75
194I Rent of – Plant/Machinery /Equipment

– Land and Building/Furniture & Fixture

240000 2




194IA Transfer of certain immovable property other than agriculture land 50 lakh 1 0.75
194IB Rent by Individual/HUF 50000 per month 5 3.75
194IC Payment under Joint Development Agreements to Individual/HUF 10 7.5
194J Professional Fees 30000 10 7.5
194J Technical Fees (w.e.f. 01.04.2020) 30000 2 1.5
194J Director’s fees 10 7.5
195 Long-term capital gain

– Under Section – 115E/


– Any Other Gains





195 Short-term capital gain – 111A 15 15
195 Royalty 10 10
195 Fees for technical services 10 10

What is the due date for depositing the TDS to the government?

The Tax Deducted at Source must be deposited to the government by 7th of the subsequent month