You do not have permission to edit this page, for the following reasons:

This IP address has been blocked from editing Wikipedia.
This does not affect your ability to read Wikipedia pages.
Most people who see this message have done nothing wrong. Some kinds of blocks restrict editing from specific service providers or telecom companies in response to recent abuse or vandalism, and can sometimes affect other users who are unrelated to that abuse. Review the information below for assistance if you do not believe that you have done anything wrong.

The IP address or range 52.91.0.0/16 has been blocked (disabled) by ‪JJMC89‬ for the following reason(s):

The IP address that you are currently using has been blocked because it is believed to be a web host provider or colocation provider. To prevent abuse, web hosts and colocation providers may be blocked from editing Wikipedia.
You will not be able to edit Wikipedia using a web host or colocation provider because it hides your IP address, much like a proxy or VPN.
We recommend that you attempt to use another connection to edit. For example, if you use a proxy or VPN to connect to the internet, turn it off when editing Wikipedia. If you edit using a mobile connection, try using a Wi-Fi connection, and vice versa. If you are using a corporate internet connection, switch to a different Wi-Fi network. If you have a Wikipedia account, please log in.
If you do not have any other way to edit Wikipedia, you will need to request an IP block exemption.

How to appeal if you are confident that your connection does not use a colocation provider's IP address:
If you are confident that you are not using a web host, you may appeal this block by adding the following text on your talk page: ((unblock|reason=Caught by a colocation web host block but this host or IP is not a web host. My IP address is _______. Place any further information here. ~~~~)). You must fill in the blank with your IP address for this block to be investigated. Your IP address can be determined here. Alternatively, if you wish to keep your IP address private you can use the unblock ticket request system. There are several reasons you might be editing using the IP address of a web host or colocation provider (such as if you are using VPN software or a business network); please use this method of appeal only if you think your IP address is in fact not a web host or colocation provider.

Administrators: The IP block exemption user right should only be applied to allow users to edit using web host in exceptional circumstances, and requests should usually be directed to the functionaries team via email. If you intend to give the IPBE user right, a CheckUser needs to take a look at the account. This can be requested most easily at SPI Quick Checkuser Requests. Unblocking an IP or IP range with this template is highly discouraged without at least contacting the blocking administrator.

This block will expire on 05:26, 2 September 2024.

Even when blocked, you will usually still be able to edit your user talk page, as well as email administrators and other editors.

For information on how to proceed, please read the FAQ for blocked users and the guideline on block appeals. The guide to appealing blocks may also be helpful.

Other useful links: Blocking policy · Help:I have been blocked
Your IP address is in a range that has been blocked on all Wikimedia Foundation wikis. The block was made by ‪Jon Kolbert‬. The reason given is Open proxy/Webhost: See the help page if you are affected .
- Start of block: 04:57, 27 November 2021
- Expiry of block: 04:57, 27 November 2024
Your current IP address is 52.91.194.66. The blocked range is 52.91.0.0/16. Please include all above details in any queries you make. If you believe you were blocked by mistake, you can find additional information and instructions in the No open proxies global policy. Otherwise, to discuss the block please post a request for review on Meta-Wiki. You could also send an email to the stewards VRT queue at stewards@wikimedia.org including all above details.

You can view and copy the source of this page:

((Short description|Means of collecting income tax in India))
((use dmy dates|date=May 2016))
((use Indian English|date=May 2016))

((Multiple issues|
((more footnotes needed|date=May 2021))
((more citations needed|date=May 2021))
((unreliable sources|date=May 2021))
))

'''Tax deduction at source''' (TDS) is an Indian [[withholding tax]] that is a means of collecting tax on income, dividends, or asset sales by requiring the payer (or legal intermediary) to deduct tax due before paying the balance to the payee (and the tax to the revenue authority).

Under the Indian Income Tax Act of 1961, [[income tax]] must be deducted at source as per the provisions of the Income Tax Act, 1961. Any payment covered under these provisions shall be paid after deducting a prescribed percentage of income tax. It is managed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue managed by the Indian Revenue Service. It has great importance while conducting tax audits. Assessee is also required to file quarterly returns to [[Central Board of Direct Taxes]] (CBDT). Returns state the TDS is deducted and paid to the government during the Quarter to which it relates.

== Objectives of income tax deducted at source ==
'''Tax deduction at source''' (TDS) has come into existence with the motive of collecting tax from different sources of income. As per this concept, a person (Payer) who is responsible to make payment of specified nature to any other person (Payee) shall deduct tax at source before making payment to such person (Payee) and remit the same into the account of the Central Government. The Payee from whose TDS has been deducted would be entitled to get a credit of the amount so deducted at the time of assessment of income tax.<ref>((cite web |title=Tax Deducted at Source (TDS) |url=https://incometaxindia.gov.in/Pages/Deposit_TDS_TCS.aspx#:~:text=The%20concept%20of%20TDS%20was,account%20of%20the%20Central%20Government. |website=incometaxindia.gov.in |publisher=Incometaxindia |access-date=24 November 2022))</ref>

==TDS on dividends==

Section 302 of India's Income Tax Act 1961 by-law notes.

*Prior to the Budget 2020,<ref>((cite web| url=https://www.indiabudget.gov.in/ | title=India Budget | publisher=Ministry of Finance | access-date=2024-03-12))</ref> dividend income was exempt from tax in the hands of the shareholder. But Since Budget 2020, any Dividend Income in excess of INR 5000 is liable for TDS @ 10% u/s 194. 
*TDS provisions under this section are attracted only in respect of deemed dividend u/s 2(22)(e), If such dividend exceeds 2500 in the year.
*Rate of deduction of tax in respect of such dividend is 1%.
*Provisions will not apply to dividends receivable by SADHA, GIC (General Insurance Corporation), its subsidiaries or any other insurer provided shares are owned by it or in which it has full beneficial interest :] [Provided also that no such deduction shall be made in respect of any dividends referred to in section 115-O.]
*Higher TDS rates for non-files of income tax returns

==TDS on immovable property==
1. '''Section 194IA of Income Tax Act, 1961'''.
* This provision is applicable in respect of transactions effected '''on or after''' '''June 1, 2013'''
* It seeks deduction of tax at source on the transfer of certain immovable property other than agricultural land to a resident transferor.
* Any person being a transferee who is liable to Pay to a resident by way of consideration for the transfer of any immovable property '''exceeding 50 Lakhs''' shall at the time of credit of such sum to the account of the transferor or at the time of payment in whatever manner, has to deduct tax at source at '''1% only'''

This TDS on the property is required to be deposited in 30 days from the end of the month in which deduction is made for all payments to be made on or after 1 June 2016.

2. '''Section 194IB of Income Tax Act, 1961'''

* This provision is applicable in respect of transactions effected '''on or after''' '''June 1, 2017'''
* It seeks deduction of tax at source on payment of rent exceeding Rs. 50,000 in a month by an individual or HUF to a resident landlord.
* TDS shall be deducted @ 5% at the time of credit of rent for the last month of the previous year or the last month of the tenancy if the property is vacated during the year, as the case may be.
* Where tax is deducted under section 194-IB, it is required to be deposited through a challan-cum-statement in Form No. 26QC within 30 days from the last day of the month in which such tax is deducted.
* A certificate in Form No. 16C shall be issued by the deductor within 15 days from the due date of furnishing challan-cum-statement in Form No. 26QC.
* There is no requirement to apply or obtain Tax Deduction or Collection Account Number (TAN) for deducting tax under this section. Hence, a deductor can use his PAN in place of TAN.

3. '''Section 194C of Income Tax Act, 1961''' 

* Tax need to be deducted 1% (for individual, HUF)/ 2% (for others) of payment where payment is made for carrying out any work (including supply of labour for carrying out any work and advertisements) by a contractor/sub-contractor. 
* Such work must be in pursuance of a contract (including sub-contract) between the contractor and payer.
* TDS is to be made at the time of credit to the account of the contractor or at the time of payment in cash or by cheque or draft or by any other mode whichever is earlier. 
* No TDS shall be deducted if the single-time payment to the contractor does not exceed RS. 35000 or Rs. 1,00,000 in aggregate during the year.
* TDS Can be deducted when the date of actual payment of cash or the date of crediting the sum to the payee's account or the date of issue of cheque, draft, or by any other mode, whichever is earlier.
*Every affordable housing scheme gets extended for one more year till 31 March 2022.

===TDS certificates===
A Payer is required to issue a TDS certificate called form 16 for salaried employees and form 16A for non-salaried employees within a specified time. Form 16D is a TDS Certificate issued for payment of a commission, brokerage, contractual fee, the professional fee under section 194M by the payer. Under Section 194M if the payments to resident contractors and professionals exceed INR 50,00,000 during the Financial Year, the payer has to deduct tax at the rate of 5% from the sum payable to a resident payee.

payer has to issue TDS Certificates within two months of the next financial year.

'''There are two types of major forms under TDS namely:'''

'''Form 16:'''
Form 16 is a certificate where the employer declares details about the salary an employee earned during the year and details of deducted TDS. Form 16 has two parts Part A and Part B. Part A consists of employer and employee details, which include name, address, [[Permanent account number|PAN]], TAN details, employment period, and details of TDS deducted & deposited with the government. Part B includes salary, income, deductions, and tax payable details, etc.

'''Form 16A:'''
Form 16A is also a TDS Certificate but it is applicable for TDS on Income other than Salary. This certificate features details such as the name and address of the payer or payee, PAN/TAN details, [[challan]] details of TDS deposited, income, and TDS deducted and deposited on such income. Details from Form 16A will be fetched on Form 26AS.

Form 26AS can also be used to verify the TDS deduction. Form 26AS is a statement that provides details of any amount deducted as TDS or TCS from various sources of income of a taxpayer. You can view Form 26AS through the TRACES portal.

==Impact of non-compliance to TDS==

Income Tax Act, 1961
*Disallowance u/s. 40(a) (ia) of Income Tax Act, 1962 (Act)
*Raising of demand u/s. 201(1) of the Act
*Charging of Interest u/s (1A) of the Act
*Levying penalty u/s. 271C of the Act

== See also ==
*[[Withholding tax]]
*[[Pay-as-you-earn tax]]

== References ==
((reflist|2))

== External links ==
* [http://www.incometaxindia.gov.in Indian Income Tax Department]

((Taxation in India))

((DEFAULTSORT:Tax Deducted At Source))
[[Category:Income tax in India]]

Pages transcluded onto the current version of this page (help):

Tax deduction at source (edit)
Template:Ambox (view source) (template editor protected)
Template:Cite web (view source) (protected)
Template:DMCA (view source) (template editor protected)
Template:Dated maintenance category (view source) (template editor protected)
Template:Dated maintenance category (articles) (view source) (template editor protected)
Template:FULLROOTPAGENAME (view source) (template editor protected)
Template:Find sources mainspace (view source) (template editor protected)
Template:Hlist/styles.css (view source) (protected)
Template:Main other (view source) (protected)
Template:More citations needed (view source) (template editor protected)
Template:More footnotes needed (view source) (template editor protected)
Template:Multiple issues (view source) (template editor protected)
Template:Multiple issues/styles.css (view source) (template editor protected)
Template:Navbox (view source) (template editor protected)
Template:Ns has subpages (view source) (protected)
Template:Pagetype (view source) (protected)
Template:Reflist (view source) (protected)
Template:Reflist/styles.css (view source) (protected)
Template:SDcat (view source) (protected)
Template:Short description (view source) (protected)
Template:Short description/lowercasecheck (view source) (protected)
Template:Taxation in India (edit)
Template:Unreliable sources (view source) (template editor protected)
Template:Use Indian English (view source) (template editor protected)
Template:Use dmy dates (view source) (template editor protected)
Template:Yesno (view source) (protected)
Template:Yesno-no (view source) (template editor protected)
Module:Arguments (view source) (protected)
Module:Category handler (view source) (protected)
Module:Category handler/blacklist (view source) (protected)
Module:Category handler/config (view source) (protected)
Module:Category handler/data (view source) (protected)
Module:Category handler/shared (view source) (protected)
Module:Check for unknown parameters (view source) (protected)
Module:Citation/CS1 (view source) (protected)
Module:Citation/CS1/COinS (view source) (protected)
Module:Citation/CS1/Configuration (view source) (protected)
Module:Citation/CS1/Date validation (view source) (protected)
Module:Citation/CS1/Identifiers (view source) (protected)
Module:Citation/CS1/Utilities (view source) (protected)
Module:Citation/CS1/Whitelist (view source) (protected)
Module:Citation/CS1/styles.css (view source) (protected)
Module:Disambiguation/templates (view source) (protected)
Module:Find sources (view source) (template editor protected)
Module:Find sources/config (view source) (template editor protected)
Module:Find sources/links (view source) (template editor protected)
Module:Find sources/templates/Find sources mainspace (view source) (template editor protected)
Module:Message box (view source) (protected)
Module:Message box/ambox.css (view source) (protected)
Module:Message box/configuration (view source) (protected)
Module:Namespace detect/config (view source) (protected)
Module:Namespace detect/data (view source) (protected)
Module:Navbar (view source) (protected)
Module:Navbar/configuration (view source) (protected)
Module:Navbar/styles.css (view source) (protected)
Module:Navbox (view source) (template editor protected)
Module:Navbox/configuration (view source) (template editor protected)
Module:Navbox/styles.css (view source) (template editor protected)
Module:Ns has subpages (view source) (protected)
Module:Pagetype (view source) (protected)
Module:Pagetype/config (view source) (protected)
Module:Pagetype/disambiguation (view source) (protected)
Module:Pagetype/setindex (view source) (protected)
Module:Pagetype/softredirect (view source) (protected)
Module:SDcat (view source) (protected)
Module:String (view source) (protected)
Module:Unsubst (view source) (protected)
Module:Wikitext Parsing (view source) (protected)
Module:Yesno (view source) (protected)

Return to Tax deduction at source.

Retrieved from "https://en.wikipedia.org/wiki/Tax_deduction_at_source"