TDS Interview Questions

TDS means Tax Deducted at Source.

It is a tax which is to be deducted on some expenses and payments

As per Income Tax Act, persons responsible for making payments are required to deduct TDS at different rates.

Source of Income of Max is Amount to be received by ABC

Tax has been deducted at this source by ABC

https://www.teachoo.com/942/364/Meaning-of-TDS-(Tax-Deducted-at-Source)/category/What-is-TDS/

Important Sections TDS Chart (From 1^st June 2016)

Section no	Description	Cutoff	Rate of TDS	Examples
194I	Rent of	180000 p.a	10%	Office rent /godown rent/guesthouse rent
	Land and Building or Furniture
	Others like Plant and Machinery		2%	Generator rent, machinery hire charges
194J	Professional Service/Technical/Royalty/Non Compete fees	30000 p.a	10%	Audit fees/Bills of professionals like CA/CWA/CS, or technical service providers or consultancies covered. Employees on contract which are white collared covered here
194H	Commission/Brokerage	5000 p.a 15000 p.a	10%   5%	Commission to broker/sales agent etc
194J(1)(b)(a)	Payment to directors other than salary	0	10%	Sitting fees to director/any payment other than salary
194A	Interest paid by Banks on FD/RD	10000 p.a	10%	Savings bank interest not covered, only interest on fixed deposits and recurring deposits covered
194 A	Interest paid by Others on Loan etc	5000 p.a	10%	Interest on loan taken from banks or financial institutions not covered, only interest on loan from friends/relatives/related companies covered
194 IA	Purchase of Immovable property	4999999	1%	On purchase of property more than 50 lacs, buyer has to deduct 1% and pay balance to party
194C	Payment to Contractors	30000 Single Contract or 75000 100000 annual	1% for Individual and HUF (2% For Others like Partnership, Company)	All other services like payment to Security guard/courier/maintenance agency/cab service/advertisement/employees on contract which do blue collared or manual work like peon/driver etc
192A	Withdrawal of Pf before 5 Years	30000 50000 p.a	10%	If we withdraw our PF for before 5 years, then Pf department deduct 10% TDS.

 

https://www.teachoo.com/4231/367/Important-Sections-TDS-Chart-(From-1st-June-2016)/category/Rates-of-TDS/

Total Rent paid during year = 15000*12 = 180000

No TDS to be deducted as Total rent paid during year is not more than 180000

No

TDS is deducted on amount before GST

Example:-

https://www.teachoo.com/7276/2197/TDS-With-GST-Tax-First-Bill--Received-then-payment-Made/category/GST-with-TDS-Accounting/

 

It means Tax Deduction Account number

In eassy language, it is TDS registration number.

We need to mention this number, while filing TDS challan and Return

 

TDS Certificate is of 2 types

1. Form 16A for TDS NON SALARY
   (to be given quarterly 15 days of due date of TDS Return) 
   
   
2. Form 16 for TDS SALARY
   (to be given annually by 31 May of next year)

https://www.teachoo.com/5107/370/Different-TDS-Certificates-and-their-Due-Dates/category/Issue-of-Certificates/

TDS Return Basically Contains following types of Details

1. Deductor Details

   (Details of Our Company who is filling TDS Return)

2. Challan Details

   (Details of Monthly TDS Challans  which we have filed)

3. Deductee Details Challan vise

   (Details of Different Parties whose TDS we have deducted in one challlan)

 

Note:-

It is normally done through some TDS Return Software

Some of these softwares are Paid while Government also provides a free software called RPU (Return Preparation Utility)

https://www.teachoo.com/955/369/Procedure-for-TDS-Return/category/Return-Procedure/

Conso file is to be downloaded in case we need to revise TDS Return.

First we have to download this file from traces and then imported into software to generate TDS Return

 

There are two websites.

1. TRACES

https://www.tdscpc.gov.in/app/login.xhtml

This website is use for downloading TDS certificate, Downloading Conso file and Justification report

Refer https://www.teachoo.com/5108/370/How-to-Download-and-Prepare-TDS-Certificates/category/Issue-of-Certificates/

 

2. INCOME TAX INDIA WEBSITE

https://www.incometaxindiaefiling.gov.in/home

This website is use to upload TDS Return

Refer https://www.teachoo.com/4041/983/New-TDS-Return-Upload-Process/category/Recent-Changes-in-TDS-(Non-Salary)/

 

1.5% interest pm for minimum 2 months

Refer https://www.teachoo.com/7339/2268/TDS-Late-Payment-Interest-Calculation/category/TDS-Interest-and-Penalty-Calculation/

1% interest from due date of deduction to actual rate of deductions

Refer https://www.teachoo.com/7340/2268/TDS-1--Interest-if-Wrong-Date-of-Deduction-in-TDS-Return/category/TDS-Interest-and-Penalty-Calculation/

 

This file is to be downloaded in case we need to revise TDS Return.

First we have to download this file from traces and then imported into software to generate TDS Return

TDS CHALLAN

 

 

TDS Challan Due Date
(7th of Next Month except March)

 

Month	Challan 281
Jan	07-Feb
Feb	07-Mar
March	30-Apr
April	07-May

 

TDS RETURN

TDS Return Due Date
(31 Days from end of quarter except March)

 

TDS Returrn		FORM 26Q/27Q	FORM 24Q
		TDS Non Salary	TDS Salary
Q1	Apr-June	31-Jul	31-Jul
Q3	Jul-Sep	31-Oct	31-Oct
Q3	Oct-Dec	30-Nov	30-Nov
Q4	Jan-Mar	31-May	31-May

 

TDS CERTIFICATE

TDS Certificate Due Date
(15 Days from Return Filing Date)

 

		FORM 16A	FORM 16
		TDS Non Salary	TDS Salary
Q1	Apr-June	15-Aug	15-Jun
Q3	Jul-Sep	15-Nov
Q3	Oct-Dec	15-Dec
Q4	Jan-Mar	15-Jun

 

TDS	TCS
It is deducted on various expenses	It is collected on various income
Example:- Rent, professional services , contract payment etc.	Example:- Sale of scraps, sale of jewellery etc
)Return form is form 24Q salary, 26Q for non salary and 27Q for non resident (non salary	Return form is 27EQ
TDS certificate is form 16 for salary and 16A for non salary	TCS certificate is form 27D

TDS is under income tax, act which is a direct tax.

However, it is deducted from other parties, so it is of the nature indirect tax

These forms are given in case we want that TDS should not be deducted on our bank interest.

Banks have to deduct TDS when interest income is more than Rs.10,000 in a year

In case we want bank not to deduct TDS, we can submit 15G form

15 G	15H
15 G Form is for individual less than 60 years	15 H is for senior citizen
Total interest Income is less than exemption limit for that year which is Rs. 250000	N/A
Tax calculation on total income is Nil	Tax calculation on total income is Nil

 

These forms are required in case of foreign payments

Earlier,these forms used to be filled for import fo goods and services both

Now,these are required to be filled only in case of services(now they are not to be filled for goods)

 

Procedure
When Foreign Invoice is to be Paid,bill is first sent to Chartered Accountant

Chartered Accountant checks Rates as per Income Tax and Rates as per DTAA and issues Form 15CB 

This is filed online at income tax website by using his digital signature

 

On basis of 15CB,Company have to fill Form 15CA using directors digital signature

(In many companies,Chartered Accountant fills both forms 15CB and 15CA)

If you see any accounts job on Naurki or Monster,it requires knowledge of Tax Deducted at Source which is commonly called TDS

 

TDS Practical Work includes Deducting TDS on various bills as per applicable rates,Making TDS Computation,Filing TDS Returns 26Q,24Q,27Q and Issue of TDS Certificares Form 16 and Form 16A  Fiing of TDS Returns is done with the help of TDS Software .Free Government Software is available at....

Some companies use private softwares like Compu TDS, Saral TDS,Webtel TDS Sofware to file return

 

This work cannot be learnt by reading books or watching videos on youtube. For this you can join CA Maninder Singh pracical training classes at Delhi and Pune where you would be given different data and assignments and made to file TDS Returns,Prepare TDS Challans and Computations.You will also be taught how to upload this TDS Return using digital signatures at incometaxindiaefiling website.You will also learn how to use TRACES Website to  download TDS Certificate,Justification Report.Also you will learn how to correct mistakes in return by downloading conso file.

TDS in Income Tax	TDS in GST
Rate of TDS Under 194C Payment to Individual /HUF 1% Payment to Others 2%	Rate of TDS Tds Rate is 1% in all cases
Applicable only If Deductor is Covered in Tax Audit (Individual/HUF/Partnership having turnover>1 Cr Or Company )	Applicable in Case of Department of Central Government or State Government Local Authority Governmental Agencies Others as may be notified
Cut off limit 30000 Single Payment Or 100000 Annual	Cut off limit 250,000 Single Contract
Challan payment Due date is 7th of next month However, for March, it is 30 April	Challan payment Due date is 10th of next month (Even for March, it is same)
TDS Return It is to be file quarterly one month from end of quarter  Except last quarter April-June->31 July July-Sep->31 Oct Oct-Dec->31 Jan Jan-March->31 May   Form No Prescribed is Form 26Q	TDS Return It is to be file monthly by 10th of next quarter Form No Prescribed is GSTR 7
TDS Certificate It is to be issued quarterly 15 days of filing TDS Return In case of late payment, Penalty applicable is 100 per day	TDS Certificate It is to be issued Monthly 5 days of filing TDS Challan In case of late payment,  Penalty applicable is 100 per day Upto max 5000