TDS Refresher

 

Ø  U/s 196 no TDS on payment made to governments.

Ø  U/s 195, TDS means Tax +Surcharge+educes.

Ø  On reimbursement of expenses, TDS is applicable.

Ø  There is an amendment in section 40(a)(ia) in Budget 2012, where expenses are allowable in case TDS not deducted and paid if the deductee remitted its tax and file its return of income. For this, Certification u/s Form 26A (see rulw 31ACB) with CA certified annexure required.  Kindly be noted that now there is no more provision of section 139 and hence TDS once not deducted on expenses, will be disallowed forever.

Ø  Penalty u/s 271H for non filing or false filing of E TDS return is from Rs. 10,000/- to 1,00,000/-

Ø  Compulsory fees u/s 234E of Rs. 200/- per day for delay in filing E TDS Return.

Ø  TCS of 1% u/s 206 for each time purchase of bullion exceeds Rs. 200.000/- or jewelry exceeds Rs. 500.000/-.

Ø   U/s 194 IA, buyer requires to deduct TDS @ 1% for purchase of immovable property value exceeds Rs. 50 Lakhs.

Ø  Interest u/s 201 – for non deduction 1% and for non payment 1.5%.

Ø  Rule 119 provides how to calculate interest.

Ø  Form 15H for senior citizen and Form 15G for others.

Ø  U/s 194C(4), personal expenses are not subject to TDS.

Ø  Service tax not required to be considered for disallowance u/s 40(a)(ia).

Ø  Sale of stamp papers attracts no TDS u/s 194H.

Ø  No TDS attracted between HO &  Branch Transactions (foreign also).