# TDSMAN Blog > TDS / TCS (Income Tax) - Information & Resource Bank ## Posts - [CBDT - Relief of TDS / TCS due to Inoperative PAN](https://blog.tdsman.com/2025/07/cbdt-relief-of-tds-tcs-due-to-inoperative-pan/): The Central Board of Direct Taxes (CBDT) has issued Circular No. 9/2025 dated 21st July 2025, providing relief from demands raised for short deduction or collection of TDS / TCS in cases where the PAN of the deductee / collectee was inoperative at the time of transaction, but was subsequently made operative. This circular partially modifies Circular No. 3/2023 dated 28th March 2023. As per Rule 114AAA of the Income-tax Rules, 1962, if PAN is not linked with Aadhaar by the specified date, it becomes inoperative. Consequently, TDS and TCS had to be deducted or collected at higher rates as... Read more » - [TDS Under Section 194J(a) & 194J(b)](https://blog.tdsman.com/2025/07/tds-under-section-194ja-194jb/): The existing section code 194J (i.e. Fees for Professional or Technical Services) has been sub-divided now into two sections, 194J(a) and 194J(b), effective from 7th August 2020. u/s 194J(a) of the Income Tax Act, is related to TDS deduction on fees for Technical Services, and u/s 194J(b) of the Income Tax Act is related to TDS deduction on fees for Professional Services. Every person excluding an individual or a HUF, making payment to a resident for notified services, will be covered u/s 194J(a) & 194J(b) in the Income Tax Act. Payments that are being covered u/s 194J(a) Fees for Technical... Read more » - [July - Pending TDS / TCS Compliances](https://blog.tdsman.com/2025/07/july-pending-tds-tcs-compliances/): 30th July – Due date of issuing TCS certificate for Quarter 1 of Financial Year 2025-2026 31st July – Due date of filing TDS Returns for Quarter 1 of Financial Year 2025-2026 15th August – Due date of issuing TDS certificate for Quarter 1 of Financial Year 2025-2026 *Please ensure timely compliance to avoid interest and/or penalties TDS / TCS Compliances for July 2025 Fees and Penalty for Late Filing of TDS Returns are as follows: Section 234E – Levy of Fees Failure to submit TDS return on time will result in fees on the deductor. If you delay or... Read more » - [TDS / TCS Non-Compliance: Costs, Risks and Prevention](https://blog.tdsman.com/2025/07/tds-tcs-non-compliance-costs-risks-and-prevention/): Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are essential components of India’s tax system to ensure better tax compliance and reduce the burden of lump-sum payments for taxpayers. However, non-compliance with TDS / TCS provisions can lead to penalties and interest charges. In this article, we will explore the various cost and other implication of non-compliance and how you can avoid them. Sl. Non-Compliance Prevention 1. Late Deposit of TDS / TCS Failure to deposit TDS or TCS to the government within the prescribed time leads to interest liabilities under the Income Tax Act. Interest TDS:... Read more » - [TDS Applicability U/S 194Q On Purchased Goods](https://blog.tdsman.com/2025/07/tds-applicability-u-s-194q-on-purchased-goods/): In the Finance Act of 2021, the Indian government inserted Section 194Q. The Indian government’s intention behind enacting this law was to generate a trail of high-value purchases and sales of products.  What is Section 194Q? As per this new provision 194Q, a buyer of the goods needs to deduct the TDS if the product bought by the buyer from a specific seller exceeds an annual value of INR 50 lacs. This indicates that if a person buys items from ‘X’ and his annual purchases exceed INR 50 lacs, he must deduct TDS on such purchases above INR 50 lacs... Read more » - [Healthy Practices for Error Free TDS Returns](https://blog.tdsman.com/2025/07/healthy-practices-for-error-free-tds-returns-17/): Preparing TDS Returns is a simple process and usually does not require any external assistance. However, it is well advised to follow few practices that ensure the correctness of your filed TDS Return. This means that correct credit will be received by the employees and vendors. Moreover, it will help avoid receiving unwanted Default Notices from the IT Department. A few of these healthy practices are summarized below: Tax should always be deducted (TDS) at the correct rate TDS amount should be deposited on correct time. In case of the deposit gets delayed, make sure that the interest amount is... Read more » - [Section 195 - TDS on Payments to Non-Residents](https://blog.tdsman.com/2025/07/section-195-tds-on-payments-to-non-residents/): What is Section 195? Section 195 of the Income Tax Act, 1961 mandates that any person (including individuals, Hindu Undivided Families (HUFs), firms, or companies) responsible for making payments to non-residents must deduct TDS if the income is chargeable under the Income Tax Act. This includes various income types such as interest, dividends, royalties, fees for technical services, and any other sum (excluding salaries) payable to a non-resident. Who is Responsible for Deducting TDS? The obligation to deduct TDS under Section 195 lies with the payer, who can be: Individuals Hindu Undivided Families (HUFs) Partnership Firms Companies Non-Resident Indians (NRIs)... Read more » - [TDS / TCS – Annual Compliance Calendar](https://blog.tdsman.com/2025/07/tds-tcs-annual-compliance-calendar/): TDS / TCS – Deposit & Filing of Returns TDS / TCS – deductions / collections during the course of the month needs to be deposited by 7th of the next month i.e. for April, amount needs to be deposited by 7th May. This is similar for all months from April till February. However, as March, being the last month for the financial year, for TDS, the date of deposit is 30th April. For TCS deposits for March, it is 7th April, similar to other months. Both TDS & TCS Returns need to be filed on completion of each quarter... Read more » - [Section 194M – Deduction of TDS by Individual and HUF from payments to contractors and professionals](https://blog.tdsman.com/2025/07/section-194m-deductio-of-tds-by-individual-and-huf-from-payments-to-contractors-and-professionals/): Section 194M, introduced in the Budget of 2019, specifically targets individuals and Hindu Undivided Families (HUFs) who were previously exempt from TDS obligations. This section mandates TDS deductions on payments made to resident contractors or professionals exceeding Rs. 50 lakhs in a financial year. What is Section 194M? Section 194M was introduced to plug a loophole in the tax system. Before its introduction, individuals and HUFs were not required to deduct TDS on payments made to contractors or professionals for personal or business use (unless otherwise mandated). This exemption led to a significant amount of payments escaping the TDS net.... Read more » - [TDS / TCS Compliance Simplified: Common Pitfalls and How to Avoid Them](https://blog.tdsman.com/2025/07/tds-tcs-compliance-simplified-common-pitfalls-and-how-to-avoid-them/): Tax Deducted at Source (TDS) & Tax Collected at Source (TCS) compliance is a crucial responsibility for all deductors and collectors. While the process is straightforward, common mistakes can lead to penalties, interest charges, and unnecessary complications. Here are some of the most frequent compliance pitfalls and actionable steps on how to avoid them. 1. Incorrect PAN Details One of the most common errors is providing incorrect or incomplete PAN details for deductees or collectees. If the PAN is incorrect or invalid, TDS / TCS applies at a higher rate. How to Avoid: Always verify PAN details before filing TDS... Read more » - [Section 206C(1G): TCS on Foreign Remittances and Tour Packages](https://blog.tdsman.com/2025/07/section-206c1g-tcs-on-foreign-remittances-and-tour-packages/): Section 206C(1G) of the Income Tax Act, 1961 mandates tax collection at source on specified foreign transactions. It applies when an authorized dealer receives funds for remittance under the Liberalized Remittance Scheme (LRS) or when a seller receives consideration for the sale of an overseas tour program package. The tax must be collected at the time of payment or debit, whichever is earlier. Applicability of Section 206C(1G) The provision covers two categories of transactions. The first is the purchase of an overseas tour program package, where TCS is applicable on the entire amount paid by the buyer. The second is... Read more » - [Section 194T: TDS on Payments by Partnership Firms to Partners](https://blog.tdsman.com/2025/07/section-194t-tds-on-payments-by-partnership-firms-to-partners/): Budget 2024 introduced Section 194T, making certain payments from partnership firms (including LLPs) to partners liable for TDS. Previously, such payments were exempt from TDS, with deductions applicable only to employee payments. This new provision, to effective from 1st April 2025. Payments Covered Under Section 194T Section 194T applies to the following payments made by a firm to its partners: Salary Remuneration Commission Bonus Interest (on capital account, loan account, or any other account) TDS Rate and Threshold Limit Rate: TDS is deducted at 10%. Threshold: Deduction applies only if aggregate payments to a partner exceed Rs. 20,000 in a... Read more » - [Section 206C(1F): TCS on Sale of Motor Vehicles and Luxury Goods](https://blog.tdsman.com/2025/07/section-206c1f-tcs-on-sale-of-motor-vehicles-and-luxury-goods/): Section 206C(1F) of the Income Tax Act, 1961 requires sellers to collect tax at source (TCS) on the sale of motor vehicles exceeding a prescribed threshold. Effective from 1st April 2025, the scope of this section has been broadened to include other luxury items. Applicability of Section 206C(1F) TCS is applicable where the seller receives sale consideration for either: A motor vehicle or Luxury goods, where the invoice value exceeds ₹10,00,000, irrespective of whether the goods are purchased for personal or business use. The seller is required to collect tax from the buyer at the time of receiving the amount or debiting... Read more » - [Section 206C(1E): TCS on Cash Receipts for Goods and Services](https://blog.tdsman.com/2025/07/section-206c1e-tcs-on-cash-receipts-for-goods-and-services/): Section 206C(1E) of the Income Tax Act, 1961 requires collection of tax at source (TCS) on high-value cash receipts arising from the sale of goods or provision of services. The provision applies when the cash portion of a transaction exceeds the prescribed threshold, irrespective of the total invoice value or mode of payment for the remaining amount. Applicability of Section 206C(1E) This provision applies when a seller or service provider receives more than ₹2,00,000 in cash from a single buyer or recipient in one day. The threshold is based solely on the cash portion of the transaction, regardless of the... Read more » - [Late Payment Intimation – reasons & how to resolve?](https://blog.tdsman.com/2025/07/late-payment-intimation-reasons-how-to-resolve/): In the TDS Return filed, the intimation for Late Payment can be received for the following reasons: Case #1: There was a delay in payment of TDS dues for which interest was not paid before filing TDS Return Case #2: The interest component was present in the Challan, but the ‘interest was not allocated’ Case #3: Challan was paid on time, but owing to some error in the ‘date of deduction / payment’ in the corresponding deductee record(s) Procedure to handle the Late Payment intimation: Case#1: Interest not paid Make the payment of the interest using ITNS 281 Challan for... Read more » - [Section 194IB - TDS on payment of Rent by certain Individuals or HUF](https://blog.tdsman.com/2025/07/section-194ib-tds-on-payment-of-rent-by-certain-individuals-or-huf/): As per Section 194IB, it is mandatory for persons such as individuals / HUF not liable to audit u/s 44AB to deduct tax for rent paid to a resident exceeding a sum of Rs. 50,000 per month. This also applicable to all salaried individuals fulfilling the criteria. When Should TDS Be Deducted? Tax must be deducted at the time whichever is earlier of the following: Making payment to the landlord, or Providing for the rent by giving credit to the landlord’s account In certain cases, the full amount of rent may not be paid or credited during the financial year.... Read more » - [Scope of TCS widened for Luxury Goods](https://blog.tdsman.com/2025/07/scope-of-tcs-widened-for-luxury-goods/): In the Budget of FY:24-25, the scope of including more luxury items beyond motor cars was announced with the option to notify additions from time to time at a future date. Vide Notifications Nos. 35/2025 and 36/2025, u/s 206C(1F), following luxury goods have been added to the list as under: Sl. No. Nature of goods Code 1. any wrist watch MA 2. any art piece such as antiques, painting, sculpture MB 3. any collectibles such as coin, stamp MC 4. any yacht, rowing boat, canoe, helicopter MD 5. any pair of sunglasses ME 6. any bag such as handbag, purse... Read more » - [New File Validation Utilities (FVUs) Version 9.2 & 2.188 released on 4th July, 2025](https://blog.tdsman.com/2025/07/new-file-validation-utilities-fvus-version-9-2-2-188-released-on-4th-july-2025/): The latest versions of the File Validation Utilities (FVUs) have been released. The key updates are summarized as under: 1. Omission of Existing Flags/Remarks Remark ‘U’ in Form 26Q, ‘J’ in Form 27Q, and ‘I’ in Form 27EQ have been removed. This applies to both regular and correction statements from FY 2025-26 Q1 onwards. 2. Change in Remark/Flag Applicability Remark ‘Y’ is no longer applicable for section codes 194B (94B) and 194BB (4BB) in Forms 26Q and 27Q. Applies to both regular and correction statements from FY 2025-26 Q1 onwards. 3. Omission of Collection Codes Collection codes 206CD (D) and... Read more » - [Section 206C(1) of the Income Tax Act: Tax Collection at Source (TCS)](https://blog.tdsman.com/2025/07/section-206c1-of-the-income-tax-act-tax-collection-at-source-tcs/): Section 206C(1) of the Income Tax Act, 1961 mandates the collection of tax at source (TCS) by sellers related to specific goods. It applies at the time of debiting the amount payable by the buyer or at the time of receipt of such amount, whichever is earlier. Applicability Collection Codes under section 206C Nature of Payment TCS Rate A Alcoholic Liquor for human consumption 1% B Timber or any other forest produce 2% C Timber obtained under any other mode other than forest lease 2% E Scrap 1% I Tendu leaves 5% J Minerals (coal, lignite, iron ore) 1% Note:... Read more » - [Section 206C(1C) - TCS on Toll Plaza, Parking, etc](https://blog.tdsman.com/2025/07/section-206c1c-tcs-on-lease-license-or-contract/): Section 206C(1C) of the Income Tax Act, 1961 mandates the collection of tax at source (TCS) by certain persons when they receive any amount as consideration for granting a lease, license, or contract relating to: 206CF – Parking Lot 206CG – Toll Plaza 206CH – Mining and Quarrying Key Points to Note The obligation is on the lessor or licensor, not the lessee or licensee. The section covers only specified resources: parking lots, toll plazas, mines, and quarries. Tax must be collected at source at the time of crediting the payment or receiving the consideration, whichever is earlier. Exclusions Section... Read more » - [CSI Download – Options through the Income Tax Portal](https://blog.tdsman.com/2025/07/csi-download-options-through-the-income-tax-portal/): CSI file is provided by the Income Tax Department through its web portal for validating the Payment Challans reported in the quarterly TDS / TCS Return. CSI File is mandatory to be downloaded from the portal and is supposed to be used at the time of generating the FVU file through the File Validation Utility. Portal: https://www.incometax.gov.in/iec/foportal/ There are two different ways to download this file: By logging into the portal with User ID & Password and downloading it from the appropriate section Without logging in, one can click on the option ‘Download CSI File’ under ‘Quick Links’ and after... Read more » - [TDS / TCS Compliances Reminder for July 2025](https://blog.tdsman.com/2025/07/tds-tcs-compliances-reminder-for-july-2025/): 7th July 2025 – Due date for TDS / TCS payment for deductions/collections during June 2025 15th July 2025 – Due date of filing  TCS Return for Quarter 1 of Financial Year 2025-2026 30th July 2025 – Due date of issuing TCS certificate for Quarter 1 of Financial Year 2025-2026 31st July 2025 – Due date of filing TDS Return for Quarter 1 of Financial Year 2025-2026 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [Consequences of TDS defaults](https://blog.tdsman.com/2025/06/consequences-of-tds-defaults-11/): Failure to deduct taxes or wrong deduction of TDS (non deposit, short deposit or late deposit) : Default/ Failure Section Nature of Demand Quantum of demand or penalty Failure to deduct tax at source 201(1) Tax demand Equal to tax amount deductible but not deducted 201(1A) Interest @1 % p.m. of tax deductible 271C Penalty Equal amount of tax deductible but not deducted Failure to deposit tax at source 201(1) Tax demand Equal to tax amount not deposited 201(1A) Interest @1.5% p.m. of tax not deducted 276B Prosecution Rigorous imprisonment for a term for a minimum of 3 months which... Read more » - [Section 194LA: TDS on Compensation for Compulsory Acquisition of Immovable Property](https://blog.tdsman.com/2025/06/section-194la-tds-on-compensation-for-compulsory-acquisition-of-immovable-property/): Section 194LA of the Income Tax Act, 1961, requires any person (referred to as the “payer”) making a payment to a resident (the “payee”) for the compulsory acquisition of immovable property to deduct TDS. This applies to compensation paid when the government or an authorized body acquires land or property for public purposes, such as infrastructure projects, roads, or urban development. However, this section does not apply to all types of immovable property. Agricultural land, both rural and urban, enjoys specific exemptions. What is Compulsory Acquisition? Compulsory acquisition refers to the process where immovable property is acquired by the government... Read more » - [Section 194O – TDS on Payments by E-Commerce Operators to Participants](https://blog.tdsman.com/2025/06/section-194o-tds-on-payments-by-e-commerce-operators-to-participants/): Section 194O was introduced in the Union Budget 2020 and came into effect from 1st October 2020. It requires e-commerce operators to deduct TDS on the gross amount of sales or services facilitated through their platform at the time of crediting the e-commerce participant’s account or making payment, whichever is earlier. This section covers all transactions involving the sale of goods or services, including professional and technical services, conducted through e-commerce platforms. Who Are E-Commerce Operators and Participants? E-commerce Operators E-commerce operators are entities that own, manage, or maintain digital platforms used for selling goods or providing services. They are... Read more » - [Section 194S - TDS on the transfer of virtual digital assets and cryptocurrencies](https://blog.tdsman.com/2025/06/section-194s-tds-on-the-transfer-of-virtual-digital-assets-and-cryptocurrencies/): Section 194S of the Income Tax Act was introduced to regulate taxation on transactions involving Virtual Digital Assets (VDAs), including cryptocurrencies and non-fungible tokens (NFTs). The provision ensures tax compliance in the rapidly growing digital asset market by mandating TDS on specified transactions. Specified Person under Section 194S Individuals or Hindu Undivided Families (HUFs) without income from ‘profits and gains of business or profession’. Individuals or HUFs with business income up to ₹1 crore. Individuals or HUFs with professional receipts up to ₹50 lakh. Additionally, the Central Board of Direct Taxes (CBDT) has issued guidelines clarifying TDS deduction rules for... Read more » - [Significance of the ‘REMARKS’ in TDS Returns](https://blog.tdsman.com/2025/06/significance-of-the-remarks-in-tds-returns/): For the different payment types, as per applicability, standard TDS rates are specified. Under certain provisions of the Act, there could be deviation from this standard deduction rate. The ‘Remarks’ column in the TDS Return is used when; either higher or lower deduction is applicable. If standard rate is being used, the ‘Remarks’ column normally does not apply. This article explains the usage of the ‘Remarks’ column in TDS Returns. Some of the most commonly reasons where ‘Remarks’ is used, is summarized as under: PARTICULARS CODE WHETHER PAN MANDATORY In case of lower / no deduction based on Certificate u/s... Read more » - [Correction Statements: Limited to the Last Six Years](https://blog.tdsman.com/2025/06/correction-statements-limited-to-the-last-six-years/): Starting from 1st April 2025, a significant change is being introduced regarding the filing of Correction Statements. Under the current provisions, taxpayers have the flexibility to file correction statements for any period, as many times as needed, with practically no restrictions on the timeframe. However, this will soon change with the new rules limiting the filing of correction statements to the previous six years only. What Does the New Rule Mean? The new provision proposes that no correction statement can be filed after six years from the completion of the relevant financial year. This means that for any financial year,... Read more » - [Section 271C: Penalty for failing to deduct TDS](https://blog.tdsman.com/2025/06/section-271c-penalty-for-failing-to-deduct-tds/): Section 271C of the Income Tax Act, 1961, outlines the penalties for failing to deduct or remit Tax Deducted at Source (TDS) as mandated by the Act. The Supreme Court has clarified that penalties under Section 271C are specifically for failures to deduct tax at source and do not extend to delays in remitting TDS after deduction. In cases where TDS is deducted but remitted late, interest may be charged under Section 201(1A), but penalties under Section 271C are not applicable. Key Provisions of Section 271C: 1. Failure to Deduct or Pay TDS: If a person fails to deduct the... Read more » - [TDS / TCS Compliances Reminder for June 2025](https://blog.tdsman.com/2025/06/tds-tcs-compliances-reminder-for-june-2025/): 7th June 2025 – Due Date for TDS / TCS payment for deductions / collections during May 2025 15th June 2025 – Due date for issuance of TDS Certificates for Quarter 4 of FY: 2024-25 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [TRACES: Download & Extract TDS & TCS Certificates](https://blog.tdsman.com/2025/05/traces-download-extract-tds-tcs-certificates/): Once you have completed the process of filing your TDS or TCS returns, the next important step is to generate and distribute the relevant certificates to deductees or collectees. The entire process, involves two key steps: Downloading the Certificate File from TRACES Extracting the Final Certificates using the Dept’s ‘Convertor Utility’ Let us break this down step-by-step. Step 1: Download the ‘Certificate File’ from TRACES ➥ Login to TRACES website with your credentials ➥ Go to ‘Downloads’ Section – choose the relevant form you need: Form 16 for employees Form 16A for non-salaried deductees Form 27D for TCS transactions ➥... Read more » - [Section 271H: Penalty on taxpayers for not filing TDS or TCS returns](https://blog.tdsman.com/2025/05/section-271h-penalty-on-taxpayers-for-not-filing-tds-or-tcs-returns/): Section 271H of the Income Tax Act, 1961, outlines penalties related to the late filing, non-filing, or furnishing of incorrect information in Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) returns. Key Provisions of Section 271H: Applicability: Late or Non-Filing of Returns: If a deductor or collector fails to submit the TDS or TCS return within the prescribed time frame. Incorrect Information: If the return filed contains incorrect details, such as inaccurate PAN, challan numbers, or TDS amounts. Late Filing Fee: A fee of ₹200 per day is levied for each day the return is delayed. This... Read more » - [May - Pending TDS / TCS Compliances](https://blog.tdsman.com/2025/05/may-pending-tds-tcs-compliances/): 30th May – Due date of issuing TCS certificate for Quarter 4 of Financial Year 2024-2025 31st May – Due date of filing TDS Returns for Quarter 4 of Financial Year 2024-2025 *Please ensure timely compliance to avoid interest and/or penalties TDS / TCS Compliances for May 2025 Fees and Penalty for Late Filing of TDS Returns are as follows: Section 234E – Levy of Fees Failure to submit TDS return on time will result in fees on the deductor. If you delay or forget to file your TDS return, fees of Rs. 200 per day will be levied on... Read more » - [TDS Certificates - TDSMAN makes it Effortless](https://blog.tdsman.com/2025/05/tds-certificates-tdsman-makes-it-effortless/): Managing TDS / TCS certificates post-return filing often involves multiple steps, interfaces and utilities. But with TDSMAN, everything comes together – neatly and efficiently – within one familiar desktop environment. Here is how TDSMAN makes the certificate generation process smoother and smarter: Always Updated, Always Ready TDSMAN ensures that all required Convertor Utilities — as mandated by the IT Department — are available on the user’s system. Whenever a new version of the utility is released, TDSMAN automatically updates it as part of its regular software updates. TDSMAN handles TRACES login directly from within the software — securely and seamlessly.... Read more » - [TDS Deduction on EPF Interest (New Rule)](https://blog.tdsman.com/2025/05/tds-deduction-on-epf-interest-new-rule/): Employee Provident Fund (EPF) was earlier not subject to tax and was tax-free in the hands of the employee. When a contribution was made, the employee could claim an income tax deduction under section 80C of the Income Tax Act, 1961 against such contribution up to INR 1.5 lakhs. Employee Provident Fund (EPF) was not subject to tax when: Interest was declared on the accumulated balance An amount was withdrawn from the fund provided all exemption criteria were met However, the Employees’ Provident Fund Organisation has done away with a few of the above tax benefits by issuing the guidelines... Read more » - [TDS / TCS Rate Chart FY: 2025-26 (AY: 2026-27)](https://blog.tdsman.com/2025/05/tds-tcs-rate-chart-fy-2025-26-ay-2026-27/): TDS RATE CHART FY: 2025-26 (AY: 2026-27) Section Nature of Payment Threshold Indv / HUF Others Rs. TDS Rate (%) 192 Salaries – Slab Rate Slab Rate 192A Premature withdrawal from EPF 50,000 10 – 193 Interest on Securities 10,000 10 10 194 Dividends 10,000 10 10 194A Interest (Banks) 50,000 10 10 194A Interest – Senior Citizen (Banks) 1 Lakh 10 10 194A Interest (Others) 10,000 10 10 194B Winning from Lotteries 10,000 30 30 194BA Winnings from online games – 30 30 194BB Winning from Horse Race 10,000 30 30 194C Contractor – Single Transaction 30,000 1 2... Read more » - [Old & New Tax Regime – Exemptions / Deductions (FY: 24-25)](https://blog.tdsman.com/2025/05/old-new-tax-regime-exemptions-deductions-fy-24-25/): A snapshot of the exemptions / deductions applicable for FY: 2024-25 (AY: 2025-26) under the Old & New Tax Regimes are summarized as under: Particulars Old Tax Regime New Tax Regime Income level (for Rebate u/s 87A) ₹ 5 lakhs ₹ 7 lakhs Rebate u/s 87A ₹ 12,500 ₹ 25,000 Standard Deduction ₹ 50,000 ₹ 75,000 HRA Exemption ✓ x Leave Travel Allowance (LTA) ✓ x Other allowances (including food allowance) ✓ x Entertainment Allowance and Professional Tax ✓ x Perquisites for official purposes ✓ ✓ Interest on Home Loan u/s 24b (Self-occupied property) ✓ x Interest on Home Loan... Read more » - [Introducing: Free Tax Comparison Tool for Salaried Employees](https://blog.tdsman.com/2025/05/introducing-free-tax-comparison-tool-for-salaried-employees/): For most salaried individuals, tax planning starts with a familiar question: Should I stick with the Old Regime or shift to the New one? Both options come with their own set of benefits — the Old Regime offers deductions and exemptions, while the New Regime promises lower slab rates. But figuring out which one works better for your salary structure can be tricky. Our smart utility is designed exclusively for salaried individuals to: Compute income tax under both the Old and New Regimes Offer a clear side-by-side comparison based on your actual salary and deductions Factor in common exemptions like... Read more » - [Important resources - Form 24Q-Q4 (TDS on Salary)](https://blog.tdsman.com/2025/05/important-resources-form-24q-q4-tds-on-salary/): With the Old & New Regime option given to employees for computing the income tax, it has become a tricky proposition even for the employers. It is important for both employers and the employees to understand the dynamics that would help in judiciously deciding on the regime and at the same time meet the compliance requirements. In this regard, quite a few blog articles have been recently published in this platform. The following links is an effort to consolidate these articles which may be helpful. Old & New Tax Regime – Exemptions / Deductions (FY: 24-25) FY: 24-25 – Guide... Read more » - [Section 276B: Failing to remit Tax Deducted at Source (TDS)](https://blog.tdsman.com/2025/05/section-276b-failing-to-remit-tax-deducted-at-source-tds/): Section 276B of the Income Tax Act, 1961, addresses the consequences for failing to remit Tax Deducted at Source (TDS) to the Central Government within the prescribed timeframe. This provision underscores the importance of timely TDS payments and outlines the legal repercussions for non-compliance. Key Provisions of Section 276B: 1. Obligation to Deposit TDS: Any person responsible for deducting tax at source under Chapter XVII-B of the Income Tax Act is required to deposit the deducted amount to the credit of the Central Government within the stipulated period. 2. Consequences of Non-Compliance: Failure to remit the deducted TDS within the... Read more » - [Computation of Income from House Property - Deduction of Interest u/s 24(b)](https://blog.tdsman.com/2025/05/computation-of-income-from-house-property-deduction-of-interest-u-s-24b-2/): Income like rent on house property, annual value of property “deemed” to be let out are considered as income from House Property and is taxable in hands the hand of the Assessee. Under the ‘Old Regime’ the deduction of interest on borrowed capital while computing the Income from House Property is allowed as follows: House Property is self-occupied: Deduction of up to Rs 2.00 Lakhs can be availed House Property is let-out: Full amount of interest can be claimed as deduction. With effect from FY 2017-18 if the deduction of interest results in a loss then only up to Rs... Read more » - [Standing Together, Standing Strong](https://blog.tdsman.com/2025/05/standing-together-standing-strong/): In these challenging times, we extend our heartfelt gratitude to the brave men and women of the Indian Armed Forces, our leadership and every citizen who continues to stand united in purpose. We understand and appreciate the value of discipline, vigilance and timely action – qualities our nation is demonstrating at every level. Let us continue to support one another, stay informed and uphold the values that define us. At TDSMAN, we salute the spirit of India – resilient, responsible and ready. Jai Hind. - [Section 89(1) Relief on Salary Arrears and Salary in Advance](https://blog.tdsman.com/2025/05/section-891-relief-on-salary-arrears-and-salary-in-advance-2/): Relief is provided under section 89(1), if salary pertaining to another period is received in advance/ or in arrears during a financial year, leading to additional tax liability. What is meant by Salary Arrears? Arrears refer to “money that is owed and should have been paid earlier”. Salary received now for an earlier period is called salary from arrears. Taxability of Salary Arrears/Advance and Relief under section 89(1) Tax is calculated on the total income earned / received during the year. If the total income includes any past dues paid in the current year, it may happen that one has... Read more » - [New File Validation Utilities (FVUs) Version 9.1 & 2.187 released on 7th May, 2025](https://blog.tdsman.com/2025/05/new-file-validation-utilities-fvus-version-9-1-2-187-released-on-7th-may-2025/): The Income Tax Department has released a new version of the File Validation Utility (FVU) to validate TDS / TCS returns before submission. This version addresses some of the errors in the previous version. This updated version would address the following: Restrictions in Correction Statement Correction Statements for TDS / TCS can only be filed for a specified number of financial years based on the financial year where the Regular Statement was due to be filed. For Q1, Q2 & Q3 Corrections Statements can be filed within six financial years. For Q4, corrections can be filed within seven financial years.... Read more » - [Section 192 - TDS on Salary](https://blog.tdsman.com/2025/05/section-192-tds-on-salary/): What is Salary? Salary include Wages, Annuity or Pension, Gratuity and others as per Section 17(i). It also includes Perquisites as per Section 17(ii) and Profit in lieu of Salary as per Section 17(iii) Tax Deduction (TDS) under section 192 No specific TDS rate is specified, however, the deduction is as per the income tax slab rates applicable in the relevant financial year for which the salary is paid to an employee. At first, the total projected taxable income of the employee is determined after taking into consideration the expected income and the exemptions / deductions. Based on this monthly... Read more » - [TDS / TCS Compliances for May 2025](https://blog.tdsman.com/2025/05/tds-tcs-compliances-for-may-2025/): 7th May 2025 – Due date for TDS / TCS payment for deductions / collections during April 2025 15th May – Due date of filing TCS Return for Quarter 4 of Financial Year 2024-2025 30th May – Due date of issuing TCS certificate for Quarter 4 of Financial Year 2024-2025 31st May – Due date of filing TDS Returns for Quarter 4 of Financial Year 2024-2025 *Please ensure timely compliance to avoid interest and/or penalties TDS / TCS Compliances for May 2025 Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [TDS / TCS Compliances Reminder for April & May 2025](https://blog.tdsman.com/2025/04/tds-tcs-compliances-reminder-for-april-may-2025/): 7th April 2025 – Due date for TCS payment for collections during March 2025 30th April 2025 – Due date for TDS payment for deductions during March 2025 7th May 2025 – Due date for TDS / TCS payment for deductions / collections during April 2025 15th May – Due date of filing TCS Return for Quarter 4 of Financial Year 2024-2025 30th May – Due date of issuing TCS certificate for Quarter 4 of Financial Year 2024-2025 31st May – Due date of filing TDS Returns for Quarter 4 of Financial Year 2024-2025 *Please ensure timely compliance to avoid... Read more » - [The New Form 12BAA for Employees](https://blog.tdsman.com/2025/04/the-new-form-12baa-for-employees/): The Central Board of Direct Taxes (CBDT) has recently notified vide Notification No. 112/2024, dated October 15, 2024 introduction of a new Form 12BAA, to help salaried individuals inform their employers for tax already deducted (TDS) from other streams of income or collected (TCS). This is in line with the changes proposed in the Union Budget 2024 and aims to simplify the process of offsetting Tax Deducted at Source (TDS) from both salary and non-salary income sources. This comes into effect from October 1, 2024. What is the New Tax Form 12BAA? Form 12BAA allows employees to report TDS /... Read more » - [Section 80CCH - Tax Benefits for Agniveers under the Agnipath Scheme](https://blog.tdsman.com/2025/04/section-80cch-tax-benefits-for-agniveers-under-the-agnipath-scheme/): The Finance Act, 2023 introduced Section 80CCH into the Income Tax Act, 1961, providing specific tax deductions and exemptions for individuals enrolled in the Agnipath Scheme. This provision offers fiscal benefits to Agniveers by incentivizing savings through the Agniveer Corpus Fund. Agniveer Corpus Fund The Agniveer Corpus Fund is a dedicated fund created to provide financial benefits to Agniveers after completion of service. Contributions to the fund include: 30% of the Agniveer’s monthly salary Matching 30% contribution by the Central Government Accrued interest on the total contributions The entire maturity amount, known as the SevaNidhi, is disbursed to the Agniveer... Read more » - [TDS Exemption to Non-Residents on certain withdrawal from NSS](https://blog.tdsman.com/2025/04/tds-exemption-to-non-residents-on-certain-withdrawal-from-nss/): The Ministry of Finance, Dept. of Revenue has recently notified vide Notification No. 27/2025 dated 4th April 2025, that provides TDS exemption on certain withdrawals from the National Savings Scheme (NSS) made to non-residents. What the Notification Covers: No TDS shall be deducted under Section 194EE on payments made to a non-resident if the withdrawal: Is from the National Savings Scheme (NSS), and Falls under clause (a) of sub-section (2) of Section 80CCA – i.e., not eligible for deduction under 80CCA, usually in cases of premature or otherwise ineligible withdrawals. Until now, withdrawals exceeding ₹2,500 from NSS accounts triggered TDS... Read more » - [Circular on Interest Waiver (TDS / TCS)](https://blog.tdsman.com/2025/04/circular-on-interest-waiver-tds-tcs/): The Income Tax Department, through Circular No. 5/2025, dated 28th March ’25, has introduced a waiver mechanism for certain interest liabilities related to TDS / TCS. Interest Waiver Provision: The circular provides guidelines for waiving interest charges that are typically levied under: Section 201(1A): Pertains to interest for failure to deduct tax at source (TDS) or after deduction, failure to pay the tax to the government. Section 206C(7): Relates to interest for failure to collect tax at source (TCS) or after collection, failure to pay it to the government. Applicability: The waiver is applicable in specific cases where: The taxpayer... Read more » - [FY: 24-25 - Guide for income details of Employees – Form 24Q-Q4](https://blog.tdsman.com/2025/04/fy-24-25-guide-for-income-details-of-employees-form-24q-q4/): It is mandatory to provide tax computation of each employee while filing the TDS Return on Salary for Quarter 4 as per the format of Annexure II in Form 24Q. Based on this, the Part B of Form 16 for the employee is generated by the Income Tax Department. It should cover all employees falling within the taxable slab, including those whose tax liability is nullified due to the rebate under section 87A. Apart from providing details for such employees, it is a good practice to report for all employees even if there is no tax element. It is of... Read more » - [New File Validation Utilities (FVUs) Version 9.0 & 2.186 released on 1st April, 2025](https://blog.tdsman.com/2025/04/new-file-validation-utilities-fvus-version-9-0-2-186-released-on-1st-april-2025/): The Income Tax Department has released a new version of the File Validation Utility (FVU) to validate TDS / TCS returns before submission. This update introduces several enhancements and changes, effective from 1st April, 2025, aimed at improving compliance and accuracy in TDS / TCS reporting. These are summarized as under: Restrictions in Correction Statement Correction Statements for TDS / TCS can only be filed for a specified number of financial years based on the financial year where the Regular Statement was due to be filed. For Q1, Q2 & Q3 Corrections Statements can be filed within six financial years.... Read more » - [TDS / TCS – Changes w.e.f. 1st April 2025](https://blog.tdsman.com/2025/03/tds-tcs-changes-w-e-f-1st-april-2025/): 1. Section 194D – Payment related to Insurance Commission The TDS @2% would apply on Section 194D – Payment related to Insurance Commission, till 31st March this was 5%. The Threshold amount is now ₹ 20,000/- (earlier it was ₹ 15,000/-) 2. Introduction of TDS on payment to Partners towards Salary, Bonus, etc. A new Section 194T has been introduced for TDS @10% for payments made to Partners towards Salary, Bonus, Incentives, etc. 3. Correction Statements – limited to the previous six years only As per the current provisions, one can file correction statements for any period as many times... Read more » - [Circular from TIN - Correction Statement](https://blog.tdsman.com/2025/03/circular-for-tin-correction-statement/): Protean for and on behalf of Tax Information Network (TIN) has issued a circular over email on 21/03/2025, related to restrictions pertaining to filing of Correction TDS / TCS Statements with effect from 1st April ’25. Important: Any correction related upto FY: 2018-19, must be done within 31st March ’25. The Circular reads as under: Dear Sir/Madam, We would like to invite your attention to the amendment in section 200(3) of the Income-tax Act vide FINANCE (No.2) ACT,2024, no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the... Read more » - [Tax Rebate - Section 87A](https://blog.tdsman.com/2025/03/tax-rebate-section-87a/): Section 87A provides a tax rebate to resident individual taxpayers, reducing their income tax liability if their taxable income falls within a specified threshold. The rebate directly lowers the tax payable, potentially bringing it down to zero. Notably, this benefit is exclusive to individuals and is not applicable to any other entities. Eligibility Criteria for Claiming Rebate The rebate under Section 87A the employee must meet the following criteria: Must be a resident individual as per the Income Tax Act. The total taxable income after all deductions and exemptions, must not exceed the prescribed limit. For FY: 2024-25 it is... Read more » - [Tax on Salary Income - Old Regime vs New Regime](https://blog.tdsman.com/2025/03/tax-on-salary-income-old-regime-vs-new-regime/): As it seems evident, gradually the ‘Old Regime’ for computing income tax is being phased out, from FY:24-25, each tax payer has been placed in the ‘New Regime’ for taxation. However, currently, one may opt out and move to the ‘Old Regime’. In the taxation slabs under the regimes, the new regime is definitely more attractive, however, in the old regime, it offers more exemption / deductions that may substantially reduce the taxable income. Based on the income and after evaluating the eligible relief, one may opt the regime that has a lower tax impact. Tax Slabs under New &... Read more » - [New Regime vs Old Regime - which is better?](https://blog.tdsman.com/2025/03/new-regime-vs-old-regime-which-is-better-2/): In a nutshell and quite obvious, one should opt for the regime where the tax liability is lower. Determination of tax liability Following factors are involved to determine the tax liability: Total Income Eligible Exemptions & Deductions Tax calculation slabs Rebate in tax amount, if any Difference in the regimes to arrive at the tax liability pertaining to FY: 2024-25 For ‘Total Income’ upto Rs. 7.00 lakhs, there is NIL tax in the ‘New Regime’ and as such the ‘Old Regime’ should not be considered. In the ‘Old Regime’ there is a substantially higher provision for Exemptions & Deductions on... Read more » - [TDS / TCS Compliance Reminder for March 2025](https://blog.tdsman.com/2025/03/tds-tcs-compliance-reminder-for-march-2025/): 7th March 2025 – Due date for TDS / TCS payment for deductions / collections during February 2025 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [Section 194G - TDS on Commission on Sale of Lottery Tickets](https://blog.tdsman.com/2025/03/section-194g-tds-on-commission-on-sale-of-lottery-tickets-2/): Any income earned by a person in the form of commission, remuneration, or prize on lottery tickets (deductee) who has been selling lottery tickets (also stocking, distributing, and purchasing) is liable to pay taxes. 1. Time of Deduction – TDS to be deducted at the time of credit or payment, whichever is earlier. 2. Deductor – Any person responsible for paying any income by way of commission, remuneration or prize (by whatever name called) on stocking, distributing, purchasing, or selling lottery tickets shall be responsible to deduct tax at source. 3. Deductee – The recipient can be a resident or... Read more » - [Coexistence of TDS 194Q and TCS 206C(1H) after Budget of 2021](https://blog.tdsman.com/2025/03/coexistence-of-tds-194q-and-tcs-206c1h-after-budget-of-2021-10/): Note: Effective FY: 2025-26, as per the Union Budget TCS on Sale of Goods has been withdrawn [Section 206(1H)]. Section 194Q – TDS on Purchase of Goods limits the scope and applicability of the Section 206C(1H) – TCS on Sale of Goods as the Second Proviso to Section 206C(1H) states that if the buyer deducts tax as per any other provision on the goods purchased by him, no tax shall be collected on the same transaction. Let us go through both the provisions for better understanding and distinction- PARTICULARS SECTION 194Q SECTION 206C(1H) Purpose Tax to be deducted Tax to... Read more » - [CBDT Circular No. 3/2025 – Income Tax Deduction from Salaries for March Quarter](https://blog.tdsman.com/2025/02/cbdt-circular-no-3-2025-income-tax-deduction-from-salaries-for-march-quarter/): The Central Board of Direct Taxes (CBDT) has released Circular No. 3/2025 on 20th February 2025, providing updated guidelines on Income-Tax Deduction from Salaries during the Financial Year 2024-25 for the March Quarter. This circular outlines the compliance requirements for employers regarding TDS deductions from salary payments and serves as an essential reference for both employers and employees to ensure tax compliance. To read the full details of Circular No. 3/2025, dated 20th February 2025, you can download the official document from the following link: Download Circular Document - [Section 194DA – TDS on Maturity Payment in Respect of Life Insurance Policy](https://blog.tdsman.com/2025/02/section-194da-tds-on-maturity-payment-in-respect-of-life-insurance-policy-4/): Section 194DA of the Income Tax Act mandates the deduction of TDS on maturity proceeds of life insurance policies that are not exempt under Section 10(10D). This provision ensures tax compliance on non-exempt life insurance payouts received by policyholders. Key Provisions of Section 194DA 1. Time of Deduction – TDS is required to be deducted at the time of payment of the maturity proceeds. 2. Deductor – Any person making a maturity payment in respect of a life insurance policy is responsible for deducting TDS. 3. Deductee – The payment must be made to a resident policyholder. If the payment... Read more » - [TDS / TCS Compliances for February 2025](https://blog.tdsman.com/2025/02/tds-tcs-compliances-for-february-2025/): 15th February 2025 – Due date for issuance of TDS Certificates for Q3 of FY: 2024-25 7th February 2025 – Due date for TDS / TCS payment for deductions / collections during January 2025 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [Key TDS / TCS proposed changes in Budget 2025-26](https://blog.tdsman.com/2025/02/key-tds-tcs-proposed-changes-in-budget-2025-26/): The Union Budget 2025-26 brings notable changes to tax deduction and collection processes, aimed at streamlining compliance and administrative procedures. These amendments focus on revising thresholds, removing redundant provisions, and improving tax administration efficiency for individuals and businesses. 1. Rationalization of TDS Thresholds The government has proposed adjustments to TDS threshold limits across various sections to provide relief to taxpayers and streamline compliance. Category TDS/TCS Section Previous Rate/Limit New Rate/Limit Interest on Securities 193 Nil Rs. 10,000 Interest Income (Senior Citizens) 194A Rs. 50,000 Rs. 1,00,000 Interest Income (Others) 194A Rs. 40,000 (banks) Rs. 50,000 (banks) Interest Income (Other Cases)... Read more » - [TDS Returns Software for FY: 2025-26 Released](https://blog.tdsman.com/2025/02/tds-returns-software-for-fy-2025-26-released/): We are pleased to announce the release of TDSMAN (FY: 2025-26). Now you can prepare TDS Returns for all quarters of FY: 2024-25 and FY: 2025-26. It covers: All TDS/TCS Returns for FY: 2025-26 All TDS/TCS Returns for FY: 2024-25 Pending TDS/TCS Returns of earlier years, if any Rectification of TDS Defaults Multi-User Options Editions: Standard, Professional, Enterprise Lite, Enterprise & Ultimate Existing users can avail the special offer Prepare ZERO-ERROR TDS / TCS Returns with TDSMAN. Visit www.tdsman.com for more information. Click here to download the Trial Version of TDSMAN (FY: 2025-26) for your evaluation. Click here to place... Read more » - [Section 194I: An Overview of TDS on Rent](https://blog.tdsman.com/2025/01/section-194i-an-overview-of-tds-on-rent/): Section 194I of the Income Tax Act outlines the rules for deducting TDS on rent. This provision primarily applies to those paying rent for properties, machinery, or other assets, ensuring compliance and streamlining tax collections. Whether you are a business entity, salaried individual, or involved in sub-letting. Let’s break down the key elements of Section 194I for easier understanding. What is Considered ‘Rent’ Under Section 194I? The definition of ‘rent’ in this section goes beyond typical payments for property use. It includes payments under any lease, sub-lease, tenancy, or similar agreements for using. It is divided into two key subcategories... Read more » - [Section 194C: TDS on Payments to Contractors](https://blog.tdsman.com/2025/01/section-194c-tds-on-payments-to-contractors/): Section 194C of the Income Tax Act governs the deduction of tax on payments made to contractors or subcontractors for carrying out any work, including the supply of labour. What is Considered as ‘Work’ Under Section 194C? The term ‘work’ includes the following activities: Advertising Broadcasting and Telecasting: Includes production of programs. Carriage of Goods and Passengers: By any mode of transport except railways. Catering Services Customized Manufacturing: Where the material is supplied by the customer. However, contracts for manufacturing using materials not supplied by the customer are excluded from this definition. Who is Liable to Deduct TDS Under Section... Read more » - [Section 192A- TDS on Payment of Accumulated PF Balance Due to an Employee](https://blog.tdsman.com/2025/01/section-192a-tds-on-payment-of-accumulated-pf-balance-due-to-an-employee-2/): Section 192A of the Income Tax Act, 1961 deals with the TDS on premature withdrawal of accumulated balance from the Employees’ Provident Fund (EPF). This section ensures that the government receives a portion of the tax on premature EPF withdrawals, which are considered taxable income in such cases. It also encourages employees to retain their EPF contributions for long-term savings. 1. Applicability & Threshold: TDS is applicable when an employee withdraws their EPF balance before completing 5 years of continuous service. No TDS is deducted if the withdrawal amount is ₹50,000 or less. 2. Rate of TDS: 10% TDS is... Read more » - [TDS / TCS Compliance Reminder for January 2025](https://blog.tdsman.com/2025/01/tds-tcs-compliance-reminder-for-january-2025/): 7th January 2025 – Due date for TDS/TCS payment for deductions/collections during December 2024 15th January 2025 – Due date of filing TCS Returns for Quarter 3 of Financial Year 2024-2025 30th January 2025 – Due date of issuing TCS certificates for Quarter 3 of Financial Year 2024-2025 31st January 2025 – Due date of filing TDS Returns for Quarter 3 of Financial Year 2024-2025 * Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS/TCS returns, without any professional help. - [New File Validation Utilities (FVUs) Version 8.9 & 2.185 released on 27th December, 2024](https://blog.tdsman.com/2024/12/new-file-validation-utilities-fvus-version-8-9-2-185-released/): The Income Tax Department has released a new version of the File Validation Utility (FVU) to validate TDS/TCS returns before submission. This update introduces several enhancements and changes, effective from FY 2024-25, aimed at improving compliance and accuracy in TDS/TCS reporting. These are summarized as under: 1. Form 24Q – Annexure II (Salary Details) A new column has been added to report TDS/TCS deductions from other sources (apart from the employer) for each employee. This change will help avoid excess TDS deductions by employers and ensure accurate tax liability of the employee. 2. Form 24Q – Standard Deduction Update The... Read more » - [PAN 2.0 Receives CCEA Approval](https://blog.tdsman.com/2024/12/pan-2-0-receives-ccea-approval/): The Cabinet Committee on Economic Affairs (CCEA) has approved the much-awaited PAN 2.0 Project by the Income Tax Department, as announced in the press release dated 26th November 2024. This landmark initiative is designed to modernize and unify all processes related to Permanent Account Numbers (PAN) and Tax Deduction and Collection Account Numbers (TAN). With over 78 crore PANs and 73.28 lakh TANs already issued, this project addresses the growing demands of taxpayers while ensuring seamless integration with the Digital India initiative. What is PAN 2.0? PAN 2.0 represents a significant re-engineering of the existing systems for managing PAN/TAN-related services.... Read more » - [Section 194N: Exemptions for Foreign and International Entities](https://blog.tdsman.com/2024/12/section-194n-exemptions-for-foreign-and-international-entities/): The Central Government has provided a significant update in the recent notification vide number 123/2024 regarding the applicability of Section 194N of the Income-tax Act, 1961. This update, effective from 1st December 2024, exempts specific entities from the provisions of Section 194N, which deals with TDS on cash withdrawals exceeding certain thresholds. Key Details of the Notification Under the powers conferred by the fifth proviso to Section 194N of the Income-tax Act, 1961, and in consultation with the Reserve Bank of India, the Central Government has specified that Section 194N shall not apply to the following entities: Foreign Representations approved... Read more » - [Points to remember regarding TDS statement](https://blog.tdsman.com/2024/11/points-to-remember-regarding-tds-statement-7/): Given below are the points one should remember regarding TDS statement: Correct Reporting: Cancellation of TDS return and deductee row is no longer permissible. Accordingly, it is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the quarterly TDS return Quote correct and valid lower rate TDS certificate in TDS return wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer Last Provisional Receipt Number to be quoted... Read more » - [TDS / TCS Compliances for November 2024](https://blog.tdsman.com/2024/11/tds-tcs-compliances-for-november-2024/): 7th November 2024 – Due date for TDS / TCS payment for deductions / collections during October 2024 15th November 2024 – Due date for issuance of TDS Certificates for Q2 of FY: 2024-25 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [What is TRACES?](https://blog.tdsman.com/2024/10/what-is-traces-2/): TRACES (TDS Reconciliation Analysis and Correction Enabling System) is an online platform provided by the Income Tax Department of India. It facilitates the following services primarily related to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS): TDS  /TCS Return Filing: Enables deductors and collectors to file their TDS and TCS returns electronically (Form 24Q, 26Q, 27Q, etc.). Correction of Returns: Allows users to make corrections to previously filed TDS/TCS returns. View challan status and utilisation. Form 16/16A/27D: Facilitates the generation and download of TDS certificates for employees (Form 16) and non-salaried deductees (Form 16A). Justification Reports: Helps... Read more » - [What are the consequences of TDS defaults and non-payment to government?](https://blog.tdsman.com/2024/10/what-are-the-consequences-of-tds-defaults-and-non-payment-to-government-2/): Failure to deduct tax, deducting less tax, delay in payment of the deducted tax to the Government, makes the deductor an assessee liable to penalty, which is equal to the amount for which the assessee is a deemed defaulter. In case of non-deduction or less deduction or delay in deduction of tax, an interest of 1% is levied on the tax per month or part of the month. In case of delay in payment of tax after deducting, interest of 1.5% is levied per month or part of the month. The interest is applicable till the time the tax deducted... Read more » - [New File Validation Utilities (FVUs) Version 8.8 & 2.184 released on 4th October, 2024](https://blog.tdsman.com/2024/10/new-file-validation-utilities-fvus-version-8-8-2-184-released/): In this updated version changes have an impact only in Form 27Q wherein new ‘Nature of Remittances’ has been included. This is applicable to FY: 2024-25 (Quarter 2) onwards. These additions are summarized as under:  196B – Long-Term Capital Gains arising from Transfer of units referred to in section 115AB codes of Nature of Remittance 71 in Form 27Q  196C – Long-Term Capital Gains arising from Transfer of units referred to in section 115AB codes of Nature of Remittance 72 in Form 27Q Following new versions of File Validation Utilities (FVUs) for e-TDS/TCS statements are released by the Income Tax... Read more » - [TDS / TCS Compliance Reminder for October 2024](https://blog.tdsman.com/2024/10/tds-tcs-compliance-reminder-for-october/): 7th October 2024 – Due date for TDS / TCS payment for deductions/collections during September 2024 15th October 2024 – Due date of filing  TCS Return for Quarter 2 of Financial Year 2024-2025 30th October 2024 – Due date of issuing TCS certificate for Quarter 2 of Financial Year 2024-2025 31st October 2024 – Due date of filing TDS Returns for Quarter 2 of Financial Year 2024-2025 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [CBDT Circular No. 09/2024 – Enhancement of Monetary Limits on Litigations](https://blog.tdsman.com/2024/09/cbdt-circular-no-09-2024-enhancement-of-monetary-limits-on-litigations/): Reference to CBDT Circular No. 05/2024 dated 15th March 2024, the monetary limits has been revised vide Circular No 09/2024 dated 17th September 2024 for filing income tax appeals by the Department before Appellate Tribunal, High Court and Supreme Court. Click on the links below to view the circulars: Circular No 09/2024 dated 17th September 2024 Circular No. 05/2024 dated 15th March 2024 These cases also include litigations related to TDS / TCS. - [Non-applicability of higher TDS / TCS u/s 206AA / 206CC in event of death](https://blog.tdsman.com/2024/09/non-applicability-of-higher-tds-tcs-u-s-206aa-206cc/): As per the recent CBDT Circular No. 08/2024 dated 5th Aug ’24, it has been provided that in the event of death of the Deductee / Collectee on or before 31.05.2024, higher deduction / collection rate under Section 206AA / 206CC will not apply if the deceased had not linked their PAN with Aadhaar. Click to view the circular. Section 206AA – TDS on payments made to non-residents and residents not having PAN - [TDS Under Section 194H – Brokerage & Commission](https://blog.tdsman.com/2024/09/tds-under-section-194h-brokerage-and-commission/): What is Section 194H? Section 194H of the Income Tax Act is specifically dedicated to TDS deducted on income earned through brokerage or commission by any person liable to pay to an Indian resident. This section ensures that tax is collected at the source on such payments. It is important to note that Section 194H does not cover insurance commission, which falls under Section 194D. The liability for TDS arises either at the time of providing credit in the book or at the time of making payment, whichever is earlier. TDS Deduction Rate: A New Update Effective from 1st October... Read more » - [Reduction / Optimization of TDS Rates W.E.F. 1st October ‘24](https://blog.tdsman.com/2024/09/reduction-optimization-of-tds-rates-w-e-f-1st-october-24/): Effective from 1st October 2024, Tax Deducted at Source (TDS) rates have been reduced. These are part of the government’s ongoing efforts to simplify tax compliance and minimize the financial impact. New TDS Rates: A Closer Look From 1st October 2024, the TDS rates for certain sections have been reduced, making it easier for taxpayers to fulfil their obligations. Here is a summary of these are as below: 1. Reduction of TDS Rate to 2% (from 5%) The TDS rate has been reduced to 2% under the following sections: Section 194DA: Pertains to deduction (including bonus) related to certain life... Read more » - [TDS on Purchase of Immovable Property (Section 194-IA)](https://blog.tdsman.com/2024/09/tds-on-purchase-of-immovable-property-section-194-ia/): Starting from 1st October 2024, significant changes are being introduced in the rules on TDS on the purchase of immovable property under Section 194-IA. These changes are particularly relevant for buyers involved in transactions where the property value is Rs. 50 lacs or more. What was the earlier provision? Previously, TDS under Section 194-IA was not applicable if a buyer paid less than Rs. 50 lacs for the purchase of immovable property. This threshold was designed to exempt smaller property transactions from the burden of TDS, simplifying the process for both buyers and sellers in such cases. What is Change?... Read more » - [TDS / TCS Compliance Reminder for September 2024](https://blog.tdsman.com/2024/09/compliance-september-2024/): 7th September 2024 – Due date for TDS / TCS payment for deductions / collections during August 2024 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [Applicability of Lower TDS / TCS Extended on Purchase of Goods](https://blog.tdsman.com/2024/08/applicability-of-lower-tds-tcs-extended-on-purchase-of-goods/): Effective from 1st October 2024, issue of certificates under Section 197 (lower deduction / collection) has been extended to include Sections 194Q and 206C. This change is a landmark as it provides relief to businesses involved in the purchase of goods. What is the Change? Previously, certificates under Section 197 for lower TDS/TCS were not applicable to transactions covered under Section 194Q and Section 206C. Starting from 1st October 2024, this benefit has been extended to both these sections. This means that eligible businesses can now apply for and obtain a certificate under Section 197 to benefit from lower TDS/TCS... Read more » - [Removal of TDS on Repurchase of Units by Mutual Funds / UTI](https://blog.tdsman.com/2024/08/removal-of-tds-on-repurchase-of-units-by-mutual-funds-uti/): In a move that will bring relief to investors, the government has announced the removal of the Tax Deducted at Source (TDS) on the repurchase of units by Mutual Funds (MF) and Unit Trust of India (UTI). This change, effective from 1st October 2024. Understanding the Change Previously, under Section 194F, TDS was levied at 20% on the repurchase of units by Mutual Funds or UTI. This meant that when investors opted to sell their units back to the fund, a TDS of 20% was deducted on the gains made from such a transaction. This tax was a point of... Read more » - [TDS / TCS Compliance Reminder for August 2024](https://blog.tdsman.com/2024/08/tds-tcs-compliance-reminder-for-august-2024/): 7th August 2024 – Due date for TDS / TCS payment for deductions / collections during July 2024 15th August 2024 – Due date for issuing  TDS certificate for Quarter 1 of Financial Year 2024-2025 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [Budget 2024-25 | TDS / TCS – proposed changes](https://blog.tdsman.com/2024/07/budget-2024-25-tds-tcs-proposed-changes/): In the recently announced Budget on 23rd July, 2024, there are quite a few proposals related to TDS / TCS. These have been summarized in this article. Highlights: Reduction / Optimization of TDS Rates under different sections TDS on repurchase of units by Mutual Funds / UTI removed (Section 194F – omitted) TDS introduced on payment to Partners towards Salary, Bonus, etc. (Section 194T – new) Scope of TCS on luxury goods exceeding Rs. 10 lacs widened beyond Motor Vehicles Scope of lower TDS / TCS (Section 197) extended on Purchase of Goods TDS on Purchase of Immovable Property (Section... Read more » - [File your TDS Returns (Q1) by 31st July, 2024](https://blog.tdsman.com/2024/07/file-tds-return-q1/): 31st July 2024 – Due date of filing TDS Return for Quarter 1 of FY: 2024-2025 TDS / TCS Certificates: 30th July 2024 – Due date of issuing TCS Certificate for Quarter 1 of FY: 2024-2025 15th August 2024 – Due date of issuing TDS Certificate for Quarter 1 of FY: 2024-2025 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [TDS Applicability U/S 194Q On Purchased Goods](https://blog.tdsman.com/2024/07/tds-applicability-u-s-194q-on-purchased-goods-4/): In the Finance Act of 2021, the Indian government inserted Section 194Q. The Indian government’s intention behind enacting this law was to generate a trail of high-value purchases and sales of products.  What is Section 194Q? As per this new provision 194Q, a buyer of the goods needs to deduct the TDS if the product bought by the buyer from a specific seller exceeds an annual value of INR 50 lacs. This indicates that if a person buys items from ‘X’ and his annual purchases exceed INR 50 lacs, he must deduct TDS on such purchases above INR 50 lacs... Read more » - [TDS / TCS Compliances Reminder for July 2024](https://blog.tdsman.com/2024/07/tds-tcs-compliances-reminder-for-july-2024/): 7th July 2024 – Due date for TDS / TCS payment for deductions/collections during June 2024 15th July 2024 – Due date of filing  TCS Return for Quarter 1 of Financial Year 2024-2025 30th July 2024 – Due date of issuing TCS certificate for Quarter 1 of Financial Year 2024-2025 31st July 2024 – Due date of filing TDS Return for Quarter 1 of Financial Year 2024-2025 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. - [New File Validation Utilities (FVUs) Version 8.7 & 2.183 released on 28th June, 2024](https://blog.tdsman.com/2024/06/new-file-validation-utilities-fvus-version-8-7/): New versions of File Validation Utilities (FVUs) for e-TDS/TCS statements are released by the Income Tax Department. The key features of these FVUs are summarized as under: FVU Version 8.7 – Applicable for quarterly TDS/TCS statements pertaining to FY 2010-11 onwards. FVU Version 2.183 – Applicable for quarterly TDS/TCS statements from FY 2007-08 up to FY 2009-10. This version of FVU is applicable with effect from June 28, 2024 onwards. Click here to read the original document TDSMAN has been fully updated with newly released File Validation Utilities. To update TDSMAN – Click on Utilities > Update Software Download File Validation Utility... Read more » - [Aggregated TDS Compliance](https://blog.tdsman.com/2024/05/aggregated-tds-compliance/): The PAN of an entity (Central Office, Headquarter etc.), having more than one TAN for its branches, associated with the referenced PAN, can review the ‘Aggregated TDS Compliance’ report on a regular basis for a summary of TDS compliance at organizational level. This feature provides a summary of TDS defaults of all respective TAN across all financial years, which assists in effective TDS administration, monitoring, control and compliance at organizational level. The feature will be extremely useful for the purpose of complying with the provisions of Section 10(a)(ia) of the Income Tax Act, 1961 by the concerned entity, to ensure... Read more » - [FVU Errors - T_FV_6351 & T_FV_6354](https://blog.tdsman.com/2024/05/fvu-errors-t_fv_6351-t_fv_6354/): While preparing the TDS Returns for Salary (Form 24Q – Quarter 4) pertaining to Financial Year 2023-24, many are facing challenges as they are encountering errors having code T_FV_6351 and T_FV_6354 at the time of File Validation through the Utility (FVU). These errors are encountered for those employees who fall under the ‘New Regime’ of taxation. Please note these do not apply for employees who have opted for the ‘Old Regime’. The error description, possible reasons and it’s resolution are summarized in the table below: Error Code Error Description Reasons & Resolution T_FV_6351 This relates to the value under ‘Other... Read more » - [What are the consequences of TDS defaults and non-payment to government?](https://blog.tdsman.com/2024/05/what-are-the-consequences-of-tds-defaults-and-non-payment-to-government/): Failure to deduct tax, deducting less tax, delay in payment of the deducted tax to the Government, makes the deductor an assessee liable to penalty, which is equal to the amount for which the assessee is a deemed defaulter. In case of non-deduction or less deduction or delay in deduction of tax, an interest of 1% is levied on the tax per month or part of the month. In case of delay in payment of tax after deducting, interest of 1.5% is levied per month or part of the month. The interest is applicable till the time the tax deducted... Read more » - [Consequences of furnishing wrong statements filing incorrect](https://blog.tdsman.com/2024/05/consequences-of-furnishing-wrong-statements-filing-incorrect-information/): With effect from 1 July 2012, failure to file TDS statement within the prescribed time shall make the deductor liable to pay by way of fee u/s 234E, a sum of Rs. 200 for each day during which the default continues. With effect from 1 July 2012, the furnishing of incorrect information in the statement by the deductor would make him liable to a penalty, which shall not be less than Rs. 10, 000 but which may extend to Rs. 1 lakh. In case the delay in filing TDS statement is more than one year from the prescribed date, then... Read more » - [What is TRACES?](https://blog.tdsman.com/2024/05/what-is-traces/): TRACES (TDS Reconciliation Analysis and Correction Enabling System) is an online platform provided by the Income Tax Department of India. It facilitates the following services primarily related to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS): TDS/TCS Return Filing: Enables deductors and collectors to file their TDS and TCS returns electronically (Form 24Q, 26Q, 27Q, etc.). Correction of Returns: Allows users to make corrections to previously filed TDS/TCS returns. View challan status and utilisation. Form 16/16A/27D: Facilitates the generation and download of TDS certificates for employees (Form 16) and non-salaried deductees (Form 16A). Justification Reports: Helps users... Read more » - [TDS / TCS Certificates – Due Dates](https://blog.tdsman.com/2024/05/tds-tcs-certificates-due-dates/): The different types of TDS / TCS certificates need to be issued on time which is summarized in the table below: Form No. Certificate – Description Frequency Due Dates Form 16 TDS on salary payment Annually 15th June Form 16A TDS on non-salary payments Quarterly 15th August 15th November 15th Feb 15th June Form 27D TCS Quarterly 30th July 30th October 30th January 30th May Others Form 16B TDS on sale of property Every transaction 15 days from due date of filing return Form 16C TDS on rent Every transaction 15 days from due date of filing return - [TDS / TCS Compliances Reminder for May 2024](https://blog.tdsman.com/2024/05/tds-tcs-compliances-reminder-for-may-2024/): 7th May 2024 – Due date for TDS / TCS payment for deductions/collections during April 2024 15th May 2024 – Due date of filing  TCS Return for Quarter 4 of Financial Year 2023-2024 30th May 2024 – Due date of issuing TCS certificate for Quarter 4 of Financial Year 2023-2024 31st May 2024 – Due date of filing TDS Return for Quarter 4 of Financial Year 2023-2024 *Please ensure timely compliance to avoid interest and/or penalties TDS / TCS Compliances Reminder for May 2024. Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help. ## Pages - [Contact Us](https://blog.tdsman.com/contact-us-2/): PDS Infotech (P) Ltd. 6, Hungerford Street The Regency – 4th Floor Kolkata 700017 Phone: +91-33-40845500 / 22875500 Mobile: +91-9836490007 Email: info@tdsman.com Website: www.tdsman.com Branch Office Mumbai : 9619654209 Kolkata  :  9903134214 Delhi  :  7676040000 - [Partners](https://blog.tdsman.com/reselling-partners/): Our Channel Partners:   ANDAMAN AND NICOBAR ISLANDS   ANDHRA PRADESH   BIHAR   CHHATISHGARH   DELHI   GOA   GUJRAT   HARYANA   KARNATAKA   KERALA   MADHYA PRADESH   MAHARASHTRA   NAGALAND   ORISSA   PUNJAB   RAJASTHAN   TAMILNADU   UTTAR PRADESH   WEST BENGAL Our Partnership Programs are designed to help you create opportunities to grow your business. Currently we are looking for dynamic partners who can complement our business and provide maximum value to our customers. We welcome opportunities to explore new partnerships. In order to join our partnership programs and get a great business... Read more » - [Order Now](https://blog.tdsman.com/order-now/): TDSMAN is one of the most comprehensive software for pre-processing and preparation of TDS & TCS returns in electronic format. Apart from covering all the relevant forms, it has the convenience to import data from Excel / Consolidated Files into TDSMAN software and facility for preparation of unlimited correction returns.  It covers the financial year 2025-26 and all earlier years since introduction of quarterly returns. There are four editions of the TDSMAN Software: 1. Standard Edition (Price: Rs. 4,900 + GST @ 18%) 2. Professional Edition (Price: Rs. 9,400 + GST @ 18%) 3. Enterprise Lite Edition (Price: Rs. 19,500... Read more » - [Video Demo](https://blog.tdsman.com/video-demo/): View the Video Demos of TDSMAN to learn its simple functions. Several videos are available to help you use the software and process the tds returns: Installation of the Software & Getting Started with TDSMAN Procedure of Entering & Generating Returns using TDSMAN Entering the Salary Details for Form 24Q – Quarter 4 Preparing Correction Returns using TDSMAN Importing Data from Excel & Consolidated Files into TDSMAN Process of Data Back-up & Data Restore in TDSMAN Process of Updating the TDSMAN Software Watch the Video Demos - [Free Trial](https://blog.tdsman.com/free-trial/): TDSMAN is capable of handling large volumes of data spread over multiple assessees. Its usability is ideally fabricated to suit all types of assessees including corporates, banking and insurance companies, government bodies and above all the SMEs & individuals. To experience the ease in preparing e-TDS returns with TDSMAN,  Download Its Free-Trial. - [About TDSMAN](https://blog.tdsman.com/about-tdsman/): TDSMAN is one of the most comprehensive software for preparation of TDS & TCS returns in electronic format. Apart from covering all the relevant forms, it has the convenience to import data from Excel / Consolidated Files into TDSMAN and facility for preparation of unlimited correction returns. It covers the financial year 2021-22 and all earlier years since introduction of quarterly returns. Apart from the usual features, TDSMAN is unique in its seamless integration with File Validation Utility in generating returns, validation & online verification of payment challans. Its flexible reporting system helps in keeping a close watch on the... Read more » [comment]: # (Generated by Hostinger Tools Plugin)