1. INCOME TAX (TAX DEDUCTION AT SOURCE)
by Hmingthanga Kipgen

2. FIRST SESSION

3. Learning Objectives Brief Introduction to TDS TDS – Workflow
TDS Process (Government Offices)
Book Adjustment (BIN)
Verification of Tax Remittance
Income Tax Calculation

4. Tax Deduction at Source
Summary of Section 192 to 194 of the IT Act
Any person responsible for making payment under the Head “as in Section 192 to 194” shall at the time of payment, deduct income-tax on the amount payable.
COMMONLY USED TERM:
Account Office - Treasury / Pay and Account Offices
Deductor - DDO / Company etc
Deductee / Assessee - Employee / Contractor / Tax Payee etc.

5. TDS Process - Work Flow BOOK ADJUSTMENT BANK DEPOSIT GAR 7 CHALLAN
TAX (TDS)
BOOK ADJUSTMENT
BANK DEPOSIT
GAR 7 CHALLAN
ITNS 281 CHALLAN
ACCOUNT OFFICE (TREASURY)
BANK
Only for Govt. Deductor (Offices)
Book Identification Number
NSDL BIN Details View
Both Govt. and Non-Govt. office
Challan Identification Number
NSDL OLTAS Details
CENTRAL BOARD OF DIRECT TAX

6. TDS Process - Work Flow BOOK ADJUSTMENT BANK CHALLAN DEPOSIT CBDT AG
Account Office
AG Challan
ITNS. 281 Challan
Deductor
Deductor
Deductee (Tax Payee)

7. TDS Process – Book Adjustment
ACCOUNT OFFICES
AIN
24G
Monthly
BIN Details
DEDUCTORS
TAN
24Q / 26Q
Quarterly
Token & Receipt Nos.
TAX PAYEE
PAN
ITR
Annually
ITR-V

8. Information required for Return of Tax
Account Office
AIN Number
TAN of Deductors
DDO Regn. No
TDS Deducted by each Deductor
Type of Deduction
Deductor
TAN Number
PAN of DDO
PAN of Deductees
DDO Regn. No
DDO Code
AO AIN Number
BIN/CIN Details
IT Deduction Details
Deductee
PAN
Form 16/16A (TDS Certificate)

9. Tax Payment/Remittance through Account Office
Head of Accounts (TDS through Account Office)
Major Head : Suspense Account (8658)
Minor Head : TDS Suspense (112)
Verification of Payment (BIN Details Download)

12. Tax Payment through Bank (OLTAS CIN Verification)

15. INCOME TAX CALCULATION

16. Income Tax (Tax Slab) Sr. No Total Taxable Salary (Rs.) Income Rates 1
Zero to 2,50,000 0% 2
2,50,001 to 5,00,000
10% 3
5,00,001 to 10,00,000
20% 4
Above 10,00,000
30%

17. CALCULATION OF INCOME TAX ON SALARY
Net Aggregate Income : Rs. 6,89,000 (Less) Deduction U/s 80C, 80CCC, 80CCD(1) : Rs. 1,50,000 (Max. Rs.1.5Lac) Other Section : Rs. 50,000 Taxable Income : Rs. 4,89,000 Income Tax : Rs (Less) Tax Credit u/s 87A : Rs Net Income Tax : Rs (Add Edu. Cess 3%) : Rs. 657 Gross Income Tax Liability : Rs
Tax Slab
Salary Distribution
Rate
Income Tax
0 –
250000 0% –
239000
10%
23900 –
20%

18. CALCULATION OF HRA EXEMPTION
Basic Salary – Rs. (5000x12) – Rs. 60,000/-
Dearness Allowance (D.A) – Rs. (1000x12) – Rs /-
House Rent Allowance (H.R.A.) – Rs. (2000x12) – Rs /-
Actual Rent Paid – Rs. (2000x12) – Rs /-
i.e. Annual Salary = Rs /-
The minimum of the following amount shall be exempt
Actual HRA received (2000x12) – Rs /-
Rent Paid in excess of 10% of salary ( ) – Rs
40% of Salary – Rs /-
Therefore, Rs shall be exempt and the balance Rs shall be included in gross salary.

19. THANK YOU

20. SECOND SESSION

21. Learning Objectives Consequences of Default Important Dates
Mandatory information for TDS compliances and how to get them?
Traces (TDS Reconciliation Analysis And Correction Enabling System)
Important Websites

22. CONSEQUENCES OF FAILURE TO DEDUCT OR PAY
SECTION 201(1) of Income Tax Act expressly states that any person liable to deduct TDS on the income distributed, makes default in the deduction and/or payment of TDS, shall be treated “assessee in default” and penalty U/s 221 of Income Tax Act shall be payable by such assessee.
SECTION 201(1A)
“Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—
at one per cent for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and
at one and one-half per cent for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,
and such interest shall be paid before furnishing the statement in accordance with the provisions of sub-section (3) of section 200”

23. INTEREST FOR DEFAULT Sr. No. Under Section Rates 1
Late Filing of eTDS Return
234E
Rs. 200 per day 2
Late Deduction/Short Deduction/Non-Deduction of Tax
201
1% Per Month 3
Late Deposit of Tax
1.5% Per Month
PENALTY(Under Section 271H)
1. Failure to submit TDS return within a year of the due date
2. Submission of incorrect details (such as PAN, Challan, TDS amount) in the statement filed
Penalty of between Rs 10,000 (ten thousand) to Rs 1,00,000 (one lakh)

24. Due Dates for Govt. Deductors
DEPOSIT OF TAX
BIN (for Govt. Deductors only)
CIN (for Govt. and Non-Govt.)
On the same day for which Sum is Credited
On or before 7th Day of corresponding month in which Sum is credited
TDS RETURN FILING
Quarter
Period
Due Date Q1
April – June
31-July Q2
July – September
31-October Q3
October – December
31-January Q4
January - March
15-May

25. Information for TDS Compliances
Mandatory details for eTDS Filing and where to get them:
TAN (Tax Deduction Account Number) : TIN-FC (offline) or NSDL Website (online)
PAN of Person Responsible : TIN-FC and PAN Center - (offline)
NSDL Website or UTI Website - (online)
BIN/CIN Information : NSDL Website or TRACES website
AIN of Account office : Concern Treasury Offices
DDO Regn Number : NSDL CRA
PAN of Deductee : From Tax Payee (Employee/Contractor etc)
Payment details
Income Tax Deduction details
Previous eTDS Filing Token Number (if any)
and
Calculation of Income Tax for Salary Employees in case of Annual Statement

26. TDS Reconciliation Analysis and Correction Enabling System
GENERAL FEATURES
Statement Status
TDS Statement Justification Report
Consolidated File
Declaration of Non Filing of Statements
Request for Resolution (Online Ticketing System)
Tax Credit status of Tax Payee
Form 16/16A
Online and Offline Correction Filing
Tracking of Challan/BIN Status
Validation of Certificate u/s 197
Digital Signature Certificate (in case of Correction through TRACES

27. Tax Exemption Certificate (Certificate u/s 197)
Form No. 15G
Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax.
Form No. : 15H
Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made by an individual who is of the age of sixty years or more claiming certain receipts without deduction of tax

28. IMPORTANT WEBSITE
Income Tax E-Filing TRACES NSDL

29. OUR CONTACT INFORMATION
CAISIAS RESEARCH AND CONSULTING TAX INFORMATION NETWORK – FACILITATION CENTRE (TIN-FC) Managed by NSDL MV-106, MISSION VENG AIZAWL, MIZORAM – PH: MB:

30. THANK YOU