When and How to claim TDS Refund

      No Comments on When and How to claim TDS Refund

In case of excess deduction of tax at source, claim of refund of such excess TDS can be made by the deductor. The excess amount is refundable as per procedure laid down for refund of TDS.

The difference between the actual payment made by the deductor and the tax deducted at source or deductible, whichever is more will be treated as the excess payment made. This amount is to be first adjusted against any existing tax liability under any of the Direct Tax Acts. After meeting such liability, the balance amount is to be refunded.

When TDS refund can be claimed:

  1. When the amount you are supposed to pay as tax in a year is lower than the amount already deducted as TDS, you are eligible to claim a TDS refund.
  2. When you fall below the minimum taxable limit and yet TDS has been deducted.

How TDS refund can be claimed:

There is no specific refund process or form to claim TDS refunds. You must file your income tax returns in the normal manner. The excess of TDS over what you are supposed to pay as tax in the year will be the refund amount due, and this needs to be shown in the returns filed. The TDS refund is processed by the Income Tax department within a few months of filing returns. Usually, it takes about 6 months time.

The Income Tax department processes the refund amount along with an interest of 6% per annum in some cases. The refund is usually given in the form of a cheque. However, with effect from AY 2015-16, all refunds will be made in electronic form, directly to the bank account of the assessee, which is required to be mentioned while filing the returns.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

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

 

  TDS RATE CHART FY: 2018-19 (AY: 2019-20)
Section Nature of Payment  Threshold Indv/ HUF Others
    Rs. TDS Rate (%)
192 Salaries   Avg 
192A Premature withdrawal from EPF  50000 10
193 Interest on Securities  10000 10 10
194 Dividends  2500 10 10
194A Interest (Banks)  10000 10 10
194A Interest (Others) 5000 10 10
194B Winning from Lotteries  10000 30 30
194BB Winnings from Horse Race 10000 30 30
194C Contractor – Single Transaction  30000 1 2
194C Contractor-During the F.Y.  1 Lakh 1 2
194C Transporter (44AE) declaration with PAN
194D Insurance Commission (15G-15H allowed)  15000 5 10
194DA Life insurance Policy  1 Lakh 1 1
194E Non-Resident Sportsmen or Sports Association 20 20
194EE  NSS  2500 10 10
194F Repurchase Units by MFs  –  20 20
194G Commission – Lottery  15000 5 5
194H Commission / Brokerage  15000 5 5
194I  Rent of Land and Building – F&F 1.80 Lakh 10 10
194I Rent of Plant / Machinery / Equipment  1.80 Lakh 2 2
194IB Rent by Individual / HUF (wef 01.06.2017) 50000/PM  5
194IA  Transfer of certain immovable property other than agriculture land 50 Lakh 1 1
194J  Professional Fees / Technical Fees / etc. 30000 10 10
194J  Payment to Call Centre Operator (wef 01.06.2017) 30000 2 2
194LA Compensation on transfer of certain immovable property other than agricultural land 2.50 Lakh  10 10
194LA  Immovable Property (TDS exempted under RFCTLARR Act (wef 01.04.2017)
194LB Income by way of interest from infrastructure debt fund (non- resident) 5 5
194LC  Income 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) 5 5
194LD  Interest on certain bonds and Govt. Securities (from 01-06-2013) 5 5
Note : TDS Rates without PAN – 20% flat (if TDS rate is lower than 20%)

Note: The above list covers most of the sections applicable for domestic transactions

TCS RATE CHART FOR FY: 2018-19 (AY: 2019-20)
Section Nature of Payment TCS Rate %
 206C Scrap 1
 206C Tendu Leaves 5
 206C Timber  obtained  under  a forest lease or other mode 2.5
 206C Any other forest produce not being a timber or tendu leave 2.5
 206C Alcoholic Liquor for human consumption 1
 206C Parking   Lot,   Toll   Plaza, Mining and Quarrying 2
 206C Minerals, being coal or lignite or iron ore (applicable   from   July   1,2012) 1
 206C Sale 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
Note : TCS Rates without PAN – Double of TCS rate as above or 5%, whichever is higher

Note: The above list covers most of the sections applicable for domestic transactions

Click here to download the list of TDS & TCS Rate Chart for FY: 2018-19.

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

Disclaimer : Efforts have been made to provide correct information. However, we do not take liability of any kind in case of any error or miscommunication in the article.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

TDS Compliances for the Month of May 2018

7th May – last date for TDS/TCS payment for deductions/collections during April
15th May – last date of filing TCS Returns for FY: 17-18, Quarter 4 (Jan – Mar)
30th May – last date for TCS Certificates for FY: 17-18, Quarter 4 (Jan – Mar)
31st May – last date of filing TDS Returns for FY: 17-18, Quarter 4 (Jan – Mar)

Basic provisions relating to due date for payment of TDS

Sections under which interest for various delays/ defaults need to be paid

Filing of TDS Returns for the quarter ended March 2018 (FY:2017-18 Quarter 4) is already under way since 1st April.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

30th April – last date for TDS payment

      No Comments on 30th April – last date for TDS payment

Filing of TDS Returns for the quarter ended March 2018 (FY:2017-18 Quarter 4) is already under way since 1st April.

Last date for payment of tax deductions for March 2018 – 30th  April, 2018.

Calculation of Late Payment Interest

Interest on Late Payment of TDS

Facebooktwittergoogle_plusredditpinterestlinkedinmail