..

2. Rate on Interest in TDS
Particular Amount Tax Rate
Interest 10000 10%
Commission 5000 5%
Rent From 18000 2&
Plant & Machine
Rent From 180000 10%
Land & Building

3. •Is a system introduced by income Tax Department
•Where person responsible for making specified
payments such as
•Salary,
•Commission
•Professional fees,
•Interest,
•Rent, Etc.
•Is liable to deduct a certain percentage of tax before
making, payment in full to the receiver of the
payment. As the name suggests, the concept of TDS
is to deduct tax at its source
Tax Deduction at Source (TDS)

4. For Example Band
Source
100 Deduct 10 Pay
90 Rs.
Tax

5. How TDS work
ICICI Band
Branch 4
Branch 1
Branch 2
Branch 3
500000
FD

6. How TDS work ICICI Band
Branch 4
AT 12% 10%
Amount Interest TDS
500000 60000 6000
500000
FD
There is no TDS interest earned on saving
account

7. How TDS work ICICI Band
Branch
4
Branch
1
Branch
2
Branch
3
80000
80000
80000
180000
SBI
Bank Branch Amount At 12%
Interest
10%
TDs
SBI Main 80000 9600 0
ICICI 4 80000 9600 0
ICICI 1 80000 9600 0
ICICI 2 80000 9600 0
ICICI 3 180000 21600 2160
80000

8. Tax Deducted at Source (TDS)
•Ref:- Section 194A (1) read with 194A (3) (i)
•Provision up-to 31/05/15
•TDS will be deducted on interest (other then Interest on Securities) over
a specified threshold limit (mentioned above ) on branch wise.
•From 01-06/2015
•TDS will be deducted on interest (other then Interest on Securities) over
a specified threshold limit (mentioned above ) on BANK WISE and not
branch wise
•File From 15G/15h to avoid TDS in case annual income is less
then exemption limit

9. From 15H is for senior citizens, those who are
60 years or older;
while from 15G is for Everybody else.

10. Provision relating to TDS [No PAN –
TDS at higher rate]
1. Finance Act (2) of 2009 makes PAN compulsory in
case of TDS eligible payments. Failing that, the
deductor will be paying TDS at a higher rate.
2. The government of India issued a notification dated
January 20, 2010, relating to tax deduction at source
(TDS) under Income Tax Act 1961. This was
applicable with effect from 1st April 2010.
3. As per the notification, all transactions liable for TDS
will have tax deduction at a higher percent of 20% if
the Permanent Account Number (PAN) of the
payees is not available.
4. The law also applies to all non-residents in respect
of payments/ remittances(प्रेषण)liable to TDS.

11. Why TDS is levied and at what rate?
Section 192
Average Income Tax Rate
Salaries Employee

12. What is TDS
Why TDS is levied and at what rate?
Tax deducted as TDS on salary can be viewed in the
From 1
Which is issued by Employer
50000
Company
Or
Employer

13. Tax deducted as TDS on salary can be viewed in the
From 1
Which is issued by Employer
50000
Company
Or
Employer
Income Tax
Department

14. Employee
48125
Company
Or
Employer
Income Tax
Department

15. Important Terms
FY Financial Year –
The financial year (FY) is the which you earn an income
AY Assessment Year
Assessment Year (AY) the year which the income is evaluated
(eqY;kadu)
Assesse-(djnkrk)
A person whose income is to be assessed
(Assesse For Exam. Tax payer Person)

16. Why TDS is levied and at what rate?
Section 192
Average Income Tax Rate
Salaries Employee

17. Salary per Month 50000
Yearly Estimated 600000
Claim Deduction of 50000
His income chargeable to Tax after deduction is 550000
Total tax liability for the year according to tax slab is 12500+10000
Average rate tax on salary =22500*100 =3.75
TDS is @ 3.75 per month deduct on salary 50000 = 1875
600000

21. Income Tax Slabs & Rates 2020-2021
The Finance Minister introduced new tax
regime in Union Budget, 2020 wherein
there is an option for individuals and HUF
(Hindu Undivided Family) to pay taxes at
lower rates without claiming deductions
under various sections. The following
Income Tax slab rates are notified in new
tax regime vs old tax regime:

22. Income Tax Slab Tax Rates As Per New
Regime
Tax Rates As Per Old Regime
₹0 - ₹2,50,000 Nil Nil
₹2,50,001 - ₹ 5,00,000 5% 5%
₹5,00,001 - ₹ 7,50,000 ₹12500 + 10% of total
income exceeding ₹5,00,000
₹12500 + 20% of total
income exceeding ₹5,00,000
₹7,50,001 - ₹ 10,00,000 ₹37500 + 15% of total
income exceeding ₹7,50,000
₹62500 + 20% of total
income exceeding ₹7,50,000
₹10,00,001 - ₹12,50,000 ₹75000 + 20% of total
income exceeding
₹10,00,000
₹112500 + 30% of total
income exceeding
₹10,00,000
₹12,50,001 - ₹15,00,000 ₹125000 + 25% of total
income exceeding
₹12,50,000
₹187500 + 30% of total
income exceeding
₹12,50,000
Above ₹ 15,00,000 ₹187500 + 30% of total
income exceeding
₹15,00,000
₹262500 + 30% of total
income exceeding
₹15,00,000

23. New tax regime slab rates are not differentiated based on age group. However, under old tax
regime the basic income threshold exempt from tax for senior citizen (aged 60 to 80 years) and
super senior citizens (aged above 80 years) is ₹ 3 lakh and ₹ 5 lakh respectively.
However, under new tax regime person cannot claim up to 70 income tax deductions while
calculating taxes. Hence, every person has to make his/her own calculation as per old and new
tax regime and calculate which one is beneficial based on type of investments made and returns
earned on those investments.
Consider an example, a person aged 35 years has the total income of ₹11, 00,000 and has made
the investment under section 80C of ₹1, 50,000 and under Section 80CCD of ₹50,000. He has
claimed income tax deduction with medical and Leave travel allowance of ₹50000 and HRA of
₹1,50,000 The tax payable under new and old tax regime is as follows:
नई कर व्यवस्था स्लैब दरों में आयु वर्ग क
े आधार पर अंतर नह ं ककया जाता है। हालांकक, पुरानी कर
व्यवस्था क
े तहत वररष्ठ नार्ररक (60 से 80 वषग की आयु) और सुपर वररष्ठ नार्ररकों (80 वषग से अधधक
आयु क
े ) क
े ललए कर से छ
ू ट की मूल आय सीमा क्रमशः ₹3 लाख और ₹5 लाख है। हालांकक, नई कर
व्यवस्था क
े तहत व्यक्तत करों की र्णना करते समय 70 आयकर कटौती का दावा नह ं कर सकता है।
इसललए, प्रत्येक व्यक्तत को पुरानी और नई कर व्यवस्था क
े अनुसार अपनी र्णना करनी होर्ी और र्णना
करनी होर्ी कक कौन सा ननवेश ककए र्ए ननवेश क
े प्रकार और उन ननवेशों पर अक्जगत ररटनग क
े आधार पर
फायदेमंद है। एक उदाहरण पर ववचार करें, 35 वषग की आयु क
े व्यक्तत की क
ु ल आय ₹11,00,000 है और
उसने ₹1,50,000 की धारा 80सी और ₹50,000 की धारा 80सीसीडी क
े तहत ननवेश ककया है। उन्होंने
₹50000 क
े धचककत्सा और छ
ु ट्ट यात्रा भत्ते और ₹1,50,000 क
े एचआरए क
े साथ आयकर कटौती का दावा
ककया है, नई और पुरानी कर व्यवस्था क
े तहत देय कर इस प्रकार है

24. Particulars New Regime Old Regime
Gross total income ₹ 11,00,000 ₹ 11,00,000
Less: Deductions under 80C ₹ 0 ₹ 1,50,000
Less: Standard Deduction (Medical & Travel Allowance) ₹ 0 ₹ 50,000
Less: Deductions under 80CCD ₹ 0 ₹ 50,000
Less : HRA deduction as per sect₹ 20,000ion 10(13A) ₹ 0₹ 0 ₹ 1,50,000
Taxable Income ₹ 11,00,000 ₹ 7,00,000
Taxes payable as per slab rates
₹0 - ₹2,50,000 ₹ 0 ₹ 0
₹2,50,001 - ₹ 5,00,000 ₹ 12,500 ₹ 12,500
₹5,00,001 - ₹ 7,50,000 ₹ 25,000 ₹ 40,000
₹7,50,001 - ₹ 10,00,000 ₹ 37,500 ₹ 0
₹10,00,001 - ₹12,50,000 ₹ 20,000 ₹ 0
Total taxes ₹ 95,000 ₹ 52,500

25. Income Tax Slabs and Rates for Financial
Year: 2019-20
Income Tax Slab Individuals Below The Age Of 60 Years
Up to `2,50,000 Nil
2,50,001 to 5,00,000 5%
5,00,001 to 10,00,000 12,500 + 20% of total income
exceeding 5,00,000
Above 10,00,000 1,12,500 + 30% of total income
exceeding 10,00,000

26. Above rates does not include Surcharge and Cess.
10% surcharge is applicable on income tax if income exceeds 50 lacs but
upto 1 crore
15% surcharge is applicable on income tax if income exceeds 1 crore
4% Health & Education Cess is applicable on the income tax and applicable
surcharge.
Tax rates and slabs are same for Male and Female as per above table
Individuals having total income below 5 lakhs, are eligible for full tax
rebate under section 87A

27. Particulars (.) Ravi Ramesh Rahul
Annual Salary 5,00,000 10,00,000 15,00,000
Less: Standard Deduction (Medical & Travel
Allowance)
50,000 50,000 50,000
Less : Deduction u/s 80C 80,000 1,50,000 1,50,000
Less : HRA deduction as per section 10(13A) 92,000 1,00,000 1,50,000
Gross Taxable Income (GTI) 2,78,000 7,00,000 11,50,000
Tax computation on GTI
Up to 2,50,000
2,50,001 to 5,00,000 1,400 12,500 12,500
5,00,001-10,00,000 40,000 1,00,000
Above 10,00,001 45,000
A Total tax 1,400 52,500 1,57,500
B Less Rebate u/s 87A 1,400
C Add: Health & Education Cess @ 4% on (A-B) 2,100 6,300
D Tax Payable (A-B+C) 54,600 1,63,800
Now, let’s examine the salary components of Ravi, Ramesh & Rahul to get a clear
picture

28. Income Thresold Tax Rate Applicable
Up to ₹ 2,50,000 NIL
₹ 2,50,001 to ₹ 5,00,000 5% on income exceeding Rs. 2.5 lakh (max.
Rs. 12,500)
₹ 5,00,001 to ₹ 10,00,000 20% on income exceeding Rs. 5 lakh (max.
Rs. 1 lakh) + Rs. 12,500
Over ₹ 10,00,000 30% on income exceeding Rs. 10 lakh + Rs.
1 lakh + Rs. 12,500

29. Additional Components

30. 1. Surcharge: In case income is more than ₹ 50 lakhs and less than
₹ 1 crore, the surcharge is applicable at a rate of 10% of the
income tax. For income, more than ₹ 1 crore, a surcharge of
15% is applicable on income tax on the amount exceeding ₹ 1
crore.
2. Health and Education Cess: “Education Cess” and “Secondary
and Higher Education Cess” will be replaced by “Health and
Education Cess” at the rate of 4%, on the amount of tax
computed, inclusive of surcharge.
3. The interim budget 2019 has provisioned to provide a full tax
rebate to individuals having a net taxable income (income
adjusted after eligible tax deductions) upto Rs 5lakhs. It means
that the maximum tax rebate provided under section 87A has
been increased from Rs. 2,500 to Rs. 12,500. Individuals having
net taxable income upto Rs. 5lakhs can claim the tax rebate
under 87A and thus effectively pay zero tax.

31. TDS PENALTIES

32. TDS Penalties
1. एम्प्लायर (Deductor) द्वारा
काटे र्ए ट डीएस को due
date से पहले सेंट्रल र्वनगमेंट क
े
खाते में जमा करवाना पड़ेर्ा
और due date क
े भीतर ह
अपनी tds Return को फाइल
करना पड़ेर्ा
2. ऐसा नह ं करने पर एम्प्लायर
पर इंटरेस्ट और पेनल्ट लर्ाए
जा सकते है। इसक
े अलावा
एम्प्लायर को उस अमाउंट की
टैतस में छ
ू ट प्रा्त नह ं होर्ी
क्जस पर ट डीएस नह ं काटा
र्या है या ट डीएस काटने क
े
बाद जमा नह ं करवाया र्या है।
• TDS deducted by the employer
(Deductor) will have to be
deposited in the Central
Government account before the
due date and file their tds Return
within the due date.
• If not doing so, interest and
penalty can be imposed on the
employer. In addition, the
employer will not get tax
exemption for the amount on
which TDS has not been deducted
or deposited after deducting TDS.

33. TDS Penalties
1. एम्प्लायर पर Rs 200 प्रनत ददन
क
े दहसाब से जब तक ट डीएस
जमा नह ं करवाया जाता है
फीस लर्ाई जायेर्ी और
minimum Rs 10000 से
अधधकतम Rs 100000 तक की
पेनल्ट लर् सकती है।
2. और यदद देय नतधथ को छ
ु ट्ट
का ददन है तो ट डीएस
एम्प्लायर द्वारा उसक
े अर्ले
ददन जमा करवाया जा सकता
है। Tds काटने क
े ललए एम्प्लायर
क
े पास TAN नंबर ( Tax
Identification number ) होना
जरुर है।
• The employer will be charged a
fee of Rs 200 per day until TDS is
deposited and penalties ranging
from a minimum of Rs 10000 to a
maximum of Rs 100000 may be
levied.
• And if the due date is a holiday,
then TDS can be deposited by the
employer the next day. To cut
TDS, the employer must have a
TAN number (Tax Identification
Number).

34. TDS Refund Process

35. Tds Refund Process
• जब एम्प्लोयी की इनकम पर
अधधक ट डीएस काट ललया जाता
है या एम्प्लोयी की इनकम पर
ट डीएस काट ललया जाता है
लेककन एम्प्लोयी की इनकम
टैतसेबल लललमट से कम है तो
एम्प्लोयी द्वारा Return फाइल
करक
े tds ररफ
ं ड तलेम ककया जा
सकता है।
ट डीएस ररफ
ं ड तलेम करने क
े ललए
एम्प्लोयी को सबसे पहले
एम्प्लायर द्वारा ददए र्ए
सदटगकफक
े ट ( फॉमग 16 – सैलर क
े
मामले में ) में ट डीएस की डडटेल
को फॉमग 26 AS से लमलानी चादहये
और जााँच करनी चादहये कक
क्जतना ट डीएस काटा र्या है वह
फॉमग 26 AS में show कर रहा है
या नह ं ।
• When more TDS is deducted on
the income of the employee or
TDS is deducted on the income of
the employee but the income of
the employee is less than the
taxable limit, the TDS refund can
be claimed by the employee by
filing Return.
• In order to claim TDS refund, the
employee should first match the
TDS details in Form 26AS in the
certificate given by the employer
(in the case of Form 16 - Salary)
and check that the TDS deducted
is in Form 26AS. show or not.

36. Tds Refund Process
• यदद फॉमग 26 AS कम ट डीएस ददखला रहा है
तो इसका मतलब है कक employer ने अभी
तक tds जमा नह ं करवाया है या एम्प्लायर
द्वारा आपक
े पैन नंबर र्लत डाले र्ए है।
इसक
े ललए आपको एम्प्लायर से बात करनी
चादहए।
लेककन यदद एम्प्लायर द्वारा ट डीएस जमा
नह ं करवाया र्या तो आप उस इनकम पर
टैतस देने क
े ललए उत्तरदायी नह ं होंर्े क्जस
पर एम्प्लायर द्वारा tds काटा ललया र्या है।
इसक
े ललए एम्प्लोयी को ट डीएस डडडतशन
क
े proof अपने पास रखने चादहये जैसे कक
फॉमग 16, सैलर क्स्लप आदद। इसक
े अलावा
आप करननधागरण अधधकार को इसक
े सम्पबन्ध
में ललख सकते है।
• इसललए Return फाइल करने से पहले अपने
फॉमग 26 AS को जरूर चेक करे। यदद
एम्प्लोयी को फॉमग 16 जार नह ं ककया र्या
है तो एम्प्लोयी फॉमग 26 AS में द र्यी
डडटेल क
े आधार पर भी ट डीएस का ररफ
ं ड
तलेम कर सकता है।
• If the Form 26AS is showing less TDS, it
means that the employer has not yet
submitted the TDS or your PAN number has
been entered incorrectly by the employer.
For this you should talk to the employer.
• But if TDS is not deposited by the employer,
you will not be liable to pay tax on the
income on which TDS has been deducted by
the employer. For this, the employee should
keep proof of TDS deduction such as Form
16, Salary slip etc. Apart from this, you can
write to the taxing officer in this regard.
• So before filing the return, please check your
Form 26AS. If the Employee is not issued
Form 16, the Employee can also claim the
refund of TDS based on the details given in
Form 26AS.