How do I View / Create TDS return ?
December 18, 2017
jargons
JARGONS FOR GST
December 23, 2017

3. Option – Reason for non deduction / lower / higher TDS

Reason for Non Deduction / Lower /higher Deduction 24Q
ParticularsCode
In case of lower deduction on account of certificate under section 197A
In case of no deduction on account of certificate under section 197B
In case of deduction of tax at higher rate due to non-availability of PAN.
TDS deducted amount in deductee details should not be less than 20% of Amount paid/ credited in this case. ‘C’ remark is allowed only if deductee PAN quoted is structurally invalid (i.e. “PANAPPLIED”, “PANINVALID” or “PANNOTAVBL”).
C
Reason for Non Deduction / Lower /higher Deduction 26 Q
ParticularsCode
In case of lower deduction/no deduction on account of certificate under section 197A
In case of no deduction on account of declaration under section 197A. Allowed only for section 194, 194A, 194EE, 193, 194DA, 192A, 194I(a), 194I(b) & 194D (no deduction/lower deduction)B
In case of deduction of tax at higher rate due to non-availability of PAN ‘C’ remark is allowed only if deductee PAN quoted is structurally invalid. (i.e. “PANAPPLIED”, “PANINVALID” or “PANNOTAVBL”).C
In case of Transporter transaction and valid PAN is providedT
Transaction where tax has not been deducted as amount paid/credited to the vendor/party has not exceeded the threshold limit (as per the provisions of income tax act). Applicable for sections 193,194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194G, 194H, 194I, 194J, 194LA.Y
For software acquired under section 194J (Notification 21/2012). Applicable from FY 2012-13 onwards.S
In case of no deduction on account of payment under section 197A (1F). Applicable from FY 2013-14 onwards.Z
Reason for Non Deduction / Lower /higher Deduction 27Q
ParticularsCode
In case of lower deduction or no deduction on account of certificate under section 197A
In case of no deduction on account of declaration under section 197AB
In case of deduction of tax at higher rate due to non-availability of PAN ‘C’ remark is allowed only if deductee PAN quoted is structurally invalid. (i.e. “PANAPPLIED”, “PANINVALID” or “PANNOTAVBL”). If the section code in the deductee details is 194LC then “C” remark is not applicable i.e., deduction of tax at higher rate is not applicable due to non-availability of deductee PAN.C
For software acquired under section 195 (Notification 21/2012). Applicable from FY 2012-13 onwards.S
Reason for Non Deduction / Lower /higher Deduction 27EQ
ParticularsCode
In case of lower collection as per section 206C (9)A
Non collection as per section 206C (1A)B
In case of deduction of tax at higher rate due to non-availability of PAN ‘C’ remark is allowed only if collectee PAN quoted is structurally invalid. (i.e. “PANAPPLIED”, “PANINVALID” or “PANNOTAVBL”). Applicable only for Section 206C(C) and statements pertains to FY 2017-18 onwards.

TDS RATE CHART FY: 2018-19 (AY: 2019-20)

SectionNature of PaymentThresholdIndv./HUFOthers
Rs.TDS Rate (%)
192SalariesAvg
192APremature withdrawal from EPF5000010
193Interest on Securities100001010
194Dividends25001010
194AInterest (Banks)100001010
194AInterest (Others)50001010
194BWinning from Lotteries100003030
194BBWinning from Horse Race100003030
194CContractor – Single Transaction3000012
194CContractor – During the F.Y.1 Lakh12
194CTransporter (44AE) declaration with PAN
194DInsurance Commission (15G – 15H allowed)15000510
194DALife insurance Policy1 Lakh11
194ENon-Resident Sportsmen or Sports2020
Association
194EENSS25001010
194FRepurchase Units by MFs2020
194GCommission – Lottery1500055
194HCommission / Brokerage1500055
194IRent of Land and Building – F&F1.80 Lakh1010
194IRent of Plant / Machinery / Equipment1.80 Lakh22
194IBRent by Individual / HUF (wef 01.06.2017)50000/PM5
194IATransfer of certain immovable property other than agriculture land50 Lakh11
194JProfessional Fees / Technical Fees / etc.300001010
194JPayment to Call Centre Operator

(wef 01.06.2017)

3000022
194LACompensation on transfer of certain2.50 Lakh1010
immovable property other than agricultural land
194LAImmovable Property (TDS exempted under RFCTLARR Act (wef 01.04.2017)
194LBIncome by way of interest from infrastructure debt fund (non-resident)55
194LCIncome by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012)
194LDInterest on certain bonds and Govt.

Securities (from 01.06.2013)

                      5          5

In Case, TDS Rate is lower than 20% TDS Rate without PAN will be 20% flat

(The above list covers most of the sections applicable for domestic transactions)

TCS RATE CHART FY: 2018-19 (AY: 2019-20)

SectionNature of PaymentTCS Rate (%)
206CScrap1
206CTendu Leaves5
206CTimber obtained under a forest lease or other mode2.5
206CAny other forest produce not being a timber or tendu leave2.5
206CAlcoholic Liquor for human consumption1
206CParking Lot, Toll Plaza, Mining and Quarrying2
206CMinerals, being coal or lignite or iron ore (applicable from July 1, 2012)1
206CSale of motor vehicle of the value exceeding Rs. 10 Lacs

(wef 01.06.2016)

Motor vehicle clause not applicable on Central Government, a

State Government, an embassy, a High Commission, Legation,

Commission, Consulate and the Trade Representation of a

foreign State; Local Authority; a Public Sector Company which

is engaged in the business of carrying passengers

(wef 01.04.2017)

1

TCS Rates (without PAN): double of the TCS rate as above or 5% (whichever is higher)

(This list covers the sections that mainly applicable for domestic transactions)

Note:

  1. Surcharge is not deductible on payments made to residents, other than salary.
  1. In case of non-resident, surcharge would be applicable on TDS.

Leave a Reply

Your email address will not be published. Required fields are marked *

79 − = 70







Want to know more about HostBooks?

We’ll help you out!