This document provides an overview of tax deducted at source (TDS) in India. It defines TDS as tax that is deducted from certain types of payments, including salaries, interest, rent, and professional fees. The objectives of TDS are to help report accurate incomes, check tax evasion, allow early collection of revenue by the government, and make tax collection cheaper and widen the tax base. The document then lists some key TDS rates and exemption limits under different sections of the Indian Income Tax Act for common types of payments.
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Final TDS
1. WELCOME TO CS STUDY CIRCLE
TOPIC :- TDS
TAX DEDUCTED AT SOURCE
Chapter - XVII
Sec.190 to 206A.
2. Tax:
A payment to a public authority required by statue, for
public purpose.
TAX
Direct Indirect
Tax Tax
3. Direct Tax: -
A tax paid directly by the person or organization on
whom it is levied.
E.g.: Income Tax & Wealth Tax.
Indirect Tax: -
A tax which is not directly paid by the taxpayer but is
included in his/her expenses.
E.g.: Sales Tax, VAT, Service tax etc.
4. Income Tax
Tax levied on Income.
Income tax Act was enacted in the year 1961
and came into force on 1st Apr 1962.
Applicable to whole of India.
Regulated by Ministry of Finance.
5. What is Tax Deducted at source ?
Generally tax liability has been calculated at the
end of year. To reduce the tax burden on the
assesses and to reduce the gap between deriving
of income and payment the TDS has been
introduced.
Tax Deducted at source.
6. Objectives of introduction of Tax Deducted at
Source.
It helps in reporting the correct Incomes.
It helps in checking Tax evasion.
Early collection of revenue by the
Government.
It is the cheapest mode of collection of tax.
It helps to widen the tax base as more and
more people are covered.
7. Sec Type of Payment Rate Exemption limit
192 TDS on Salaries. As Individual- Rs.1,60,000/-
applicable Women- Rs.1,90,000/-
to Senior Citizen- Rs.2,40,000/-
Individuals
193 TDS on Interest on Scurrilities 10% Rs.2,500/-
194A TDS on Interest other than Securities 10% Rs.10,000/- made by post
office
Rs.5,000/- others
194B TDS on Winning from Lotteries 30% Rs.5,000/-
194BB TDS on Winning from Horse race 30% Rs.2,500/-
194C TDS on payment to contractor or Sub-Contractor. 1% Rs.20,000/-p.a.
Individual,
HUF
2% for
others
194H TDS on payment Commission or Brokerage. 10% Rs.2,500/-
194I TDS on payment of Rent. 10% Rs.1,20,000/- p.a.
194J TDS on payment of any Professional fees Or 10% Rs.20,000/-p.a.
technical fees
8. Quiz Time>>>
1. Rate for TDS on Rent?
2. Rate for TDS on Salary?
3. Rate for TDS on Contractor?
4. Exemption limit for Rent?
5. Exemption limit for Professional fees?
