FAQ
FAQs related to TDS
Tax Deducted at Source or TDS is a percentage of the amount that is deducted by a person at the while making or crediting certain payment of a specific nature to the other person. This deducted amount is then remitted to the Government Account.
Form 24Q, Form 26Q, Form 27Q, Form 27EQ | |||
Quarter | Period | TDS for Government/Non-Government Deductors | TCS |
Q1 | 1 Apr - 30 June | 31st July | 15th July |
Q2 | 1 July - 30 Sept | 31st Oct | 15th Oct |
Q3 | 1 Oct - 31 Dec | 31st Jan | 15th Jan |
Q4 | 1 Jan - 31 Mar | 15th May | 15th May |
Delay in filing TDS:
As per section 234E w.e.f. July 1, 2012, if a person fails to submit TDS return on the due date, then a penalty of Rs. 200/- per day is charged till the default continues. However, the amount should not exceed the total tax amount.
Non-filing of TDS/Furnishing incorrect info:
Penalty is also levied in case of non-filing or if some incorrect information has been furnished. The amount should not be less than Rs. 10,000/- and not more than Rs. 1,00,000/- u/s 271H of the IT Act, 1961.
Password for Form 16/16A, transaction based report and Form 27D zip files is TAN of deductor.
Password for conso file is 'TAN_' (eg. ABCD12345E_67890). Request number should be of one of the requests submitted.
Password to unzip Justification Report is 'JR__ __', eg. JR_AAAAA1235A_24Q_Q3_2010-11.
Download the zip file from 'Requested Downloads' screen and save it in your system.
Unzip the file using Winzip. Password to unzip is 'JR____', eg. JR_AAAAA1235A_24Q_Q3_2010-11. This will save the justification report as an excel file.
Download the macro utility for Justification Report from the screen.
Double-click on utility, excel sheet will open.
Click on enable content in the warning message to enable macros.
Select the Justification Report text file and the folder to save the output excel file and click on the button 'Generate TDS CPC Justification Report'.
The text file will be converted into excel spreadsheet and saved in the selected folder.
Open the Justification Report excel file from the concerned folder.
S.NO | FOURTH CHARACTER of PAN | STATUS OF ASSESSEE |
1 | P | INDIVIDUALS |
2 | H | HINDU UNDIVIDED FAMILY |
3 | F | FIRMS |
4 | C | COMPANY |
5 | T | TRUSTS |
6 | A | ASSOCIATION OF PERSONS |
7 | B | BODY OF INDIVIDUALS |
8 | L | LOCAL AUTHORITY |
9 | J | ARTIFICIAL JUDICIAL PERSON |
10 | G | GOVERNMENT |
TDS Reconciliation Analysis and Correction Enabling System helps the deductors and the deductees by efficient and effective administration of the taxation system. It aims at improving the end-user satisfaction by providing timely and appropriate web services.
Resident is a person who stays in India for 182 days or more in a year regardless of his citizenship. But, if the stay is less than 182 days, he /she is a non-resident.
Income Tax is applicable to every person who earns an income in India irrespective of being a resident or a non-resident.
Yes, tax should be deducted u/s 195. In case of some ambiguity regarding the amount on which tax is to be deducted, you may file an application with the officer handling non-resident taxation who will then pass an order determining the tax to be deducted. If the recipient feels that the TDS is more he may file an application with his Assessing Officer for non-deduction.
A resident company is incorporated under the Indian Companies Act. Also, a foreign company can become a 'resident' if the control and management of its affairs is done entirely in India during the previous year.
No, the PAN cannot be used as a separate Tax Deduction Account Number (TAN) is required through an application in Form 49B with the TIN facilitation center of NSDL.
In this case, a self-declaration should be made to the banker in Form 15H stating that your income is below the taxable limit. This form is available with the bank, the local Income Tax office and can also be downloaded from the Government website www.incometaxindia.gov.in. This form should be filed before the interest begins to accrue in the fixed deposit account as the declaration has no retrospective effect.
The onus to pay taxes rests on the person who has earned income. If the employee deposits such tax then the employer will be liable for interest and penalty for failure to deduct tax.
If you compute your tax liability and find it to be lower than the tax being deducted, you may approach your Assessing Officer by filing Form 13. He will then issue a certificate directing the tenant to make TDS at a lesser rate. This form is available with the local Income Tax office or can be downloaded from the website www.incometaxindia.gov.in
It is an offence to misuse Tax Deducted at Source. It should be remitted to government account within the specified time frame. If a person fails to deposit TDS, it attracts levy, interest, penalty and also an imprisonment up to seven years.
FAQs related to GST
Who is supposed to file GSTR-1?
Every business that is registered under Goods and Services Tax must file GSTR-1. By filing this return, every tax payer makes a declaration of all the sales transactions made by him in the given period.
2. GSTR-1A
It is an amendment form used to correct the GSTR-1 for any mismatches between the GSTR-1 of a taxpayer and the GSTR-2 of his customers. This can be filed between 15th and 17th of the following month.
3. GSTR-2
GSTR-2 is a monthly return of purchases or inward supplies.
Who is supposed to file GSTR-2? Every registered person must file GSTR-2 except for the following:
- Input Service Distributor
- Non-residential taxable person
- Person required to deduct the TDS or e-commerce operator system
4. GSTR-2A GSTR-2A includes mismatches in GSTR-1 and GSTR-2. It is not used for filing purpose as it involves reconciliation of mismatches.
The reasons for a mismatch can be:
- Wrong GSTIN of the user or the counter-party
- Wrong invoice date or invoice no.
- Wrong tax value
5. GSTR-3 GSTR-3 is a monthly GST return that is divided into the following parts:
- Part-A
- Part-B
Every registered person must file GSTR-3 except for the following:
- Input Service Distributor
- Non-residential taxable person
- Person required to deduct the TDS or e-commerce operator system
6. GSTR-9
An annual consolidated tax return that includes a summary of taxpayer's income & expenditure in detail.
7. GSTR-4 It is a quarterly return for those who have registered themselves under the GST Composition Scheme. The entities which have a turnover less than 75,000 INR are eligible for this scheme. Under the composition scheme, the tax payer is required to file one return every quarter instead of three returns every month.
8. GSTR-4A
Quarterly purchase-related tax return for composition dealers. It's automatically generated by the GSTN portal based on the information furnished in the GSTR-1, GSTR-5, and GSTR-7 of your suppliers.
9. GSTR-9A
GSTR-9A is a consolidated annual return for compounding business entities. It includes all the quarterly returns filed in that financial year.
10. GSTR-5
A variable return for Non-Resident foreign taxpayers. It contains the details of the taxpayer, period of return and invoice details of all goods and services sold and purchased by the tax payer in India for the registered period.
11. GSTR-6
It is a monthly return for Input Service Distributors (ISD). This return contains the details of the taxpayer, period of the return, supply details from the GSTR-1 of counter-parties, invoice details, separate ISD ledger containing the opening ITC balance for the period, credit for ITC services received, debit for ITC reversed or distributed, and closing balance.
12. GSTR-7
GSTR-7 is a monthly return for TDS transactions. It contains the basic information of the taxpayer, period of the return, supplier's GSTIN, invoices against which the tax has been deducted (SGST, CGST, and IGST), and details of any other payment such as interests and penalties.
13. GSTR-8
A monthly return for e-commerce operators. It contains the basic information of the taxpayer, the period of the return, details of supplies made to customers through the e-commerce portal by both registered taxable persons and unregistered persons, customers' basic information, the amount of TCS, tax payable, and tax paid.
14. GSTR-10
The final GST return for the cancellation of GST registration. This return is to be filed in case of termination of business activities permanently/cancellation of GST registration. It contains the details of all supplies, liabilities, tax collected, tax payable, etc.
15. GSTR-11
Variable tax return for taxpayers with UIN. GSTR-11 contains the details of purchases made by foreign embassies and diplomatic missions for self-consumption during a particular month.
16. GSTR-3A This is the tax notice issued by the tax authority to a defaulter who fails to file monthly GST returns on time.
Type of Return | Details | Time Period | Due Date |
GSTR-1 | Details of outward supplies of taxable goods and/or services | Monthly | 10th of the next month |
GSTR-2 | Details of inward supplies of taxable goods and/or services claiming input tax credit. | Monthly | 15th of the next month |
GSTR-3 | Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of the amount of tax. | Monthly | 20th of the next month |
GSTR-4 | Return for compounding taxable person only | Quarterly | 18th of the month succeeding quarter |
GSTR-5 | Return for Non-Resident foreign taxable person | Monthly | 20th of the next month |
GSTR-6 | Return for Input Service Distributor (ISD) | Monthly | 13th of the next month |
GSTR-7 | Return for authorities deducting tax at source. | Monthly | 10th of the next month |
GSTR-8 | Details of supplies effected through e-commerce operator and the amount of tax collected | Monthly | 10th of the next month |
GSTR-9 | Annual Return | Annually | 31st December of next financial year |
GSTR-9A | Annual Return | Monthly | 31st December of next financial year |
GSTR-10 | Final Return for cancellation of GST registration | At the time of cancellation or surrender | Within three months of the date of cancellation or date of cancellation order, whichever is later. |
GSTR-11 | Details of inward supplies to be furnished by a person having UIN and claiming refund | Monthly | 28th of the month following the month for which statement is filed |
- A penalty of 100 INR per day is applicable for latefiling of GST return. The penalty would be payable for the period in which the taxpayer failed to furnish the return. The maximum penalty is 5000 INR.
- In case, a taxpayer fails to file GST return for any month, then theGST return for the next month cannot be filed by him.
- Further, if a taxpayer fails to file GSTR-2 return on the 15th, then the taxpayer would not be able to file GSTR-3 return on the 20th.
- The latefiling of GST return results in a cascading effect that leads to heavy fines and penalty.
The GST Composition scheme is an easy and convenient tax scheme for small and medium enterprises. Under this scheme, firms can pay a fixed percentage of their turnover as tax. They need to file reduced number of returns compared to normal tax payers under GST. The floor rate of tax for CGST and SGST shall not be less than 1%. The turnover of an enterprise should be below 75 INR lakhs and in case of north-eastern states it should be 50 lakhs INR.
Who can avail composition scheme?
A dealer who:
- Deals only in the intra-statesupply of goods or service of only restaurant sector.
- Does not supply non-taxable goods.
- Pays tax at normal rates in case he is liable under reverse charge
- Is not an e-commerce operator.
- Is not a manufacturer of ice cream, pan masala or tobacco (and its substitutes).