TDS on Income from Pension

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Before proceeding on TDS provisions applicability on Income from Pension, it is important to understand the different types of pensions and TDS provision. There are 3 primary schemes for pensioners.

1. Regular Pension – Describes a payment, which a person receives upon their retirement.        (i.e. Pension Annuity – payment at periodical time interval generally on monthly basis)

         ♦  TDS will be applicable on Annuity Pension, as it falls under Income from Salary                   u/s 192

         ♦  The past employer will be responsible for the payment in case in case of non-                        government pensioners

         ♦  For Central & State Govt. pensioners, nationalized banks are responsible for the                   payment

2. Commutation of Pension – payment of lump sum amount in lieu of a portion of pension surrendered voluntarily by the pensioner based on a duration of period in relation to the age. Excess amount received if any over and above the limits specified u/s 10(10A) above is taxable under the head Income from Salary. Accordingly the TDS provisions will apply

3. Family Pension – Under Section 57 (iia) of the Income Tax Act, it is stated that Family Pension is a regular monthly amount, payable by the employer to a person belonging to the family of an employee in the event of his death.

         ♦  Family pension will not be covered under this section as family pension is taxed                   under “Income from other sources”

        ⇒TDS/TCS Rate Chart FY: 2021-22 (AY: 2022-23)⇐

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TDS Returns Software for FY: 2021-22 Released

On popular demand, we are pleased to announce the release of TDSMAN (FY: 2021-22). Now you can prepare TDS Returns for all quarters of FY: 2020-21 and all quarters of the next FY: 2021-22.

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TDSMAN – Featured in (The Economic Times, Kolkata)

Indeed, a great privilege for Team TDSMAN as our Director, Mr. Ranjan Goenka has been featured by The Economic Times, Kolkata in their news daily on 7th April 2021.

We express our sincere gratitude to all our valued users and other stakeholders for their cooperation and encouragement.

⇒ Click here for the published article⇐

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Interest on Late Deduction of TDS

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The due date for deduction is either at the time of giving credit or payment of the dues, whichever is earlier. Late deduction happens in the event the tax is not deducted when the deduction is due and is deducted at a later date. The interest for the delay in deduction is charged at the rate of 1% per month or part of a month of the delay. For Example if the due date for a deduction is 2nd of June and it is deducted on 8th of July in the same year, then the interest is charged at the rate of 1% for each month i.e. (June & July) aggregating to 2% interest.

Interest on Late Payment of TDS

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