TDS Computation

Chapter 1: TDS on Salary

Introduction

• Tax Deducted at Source (TDS)
• Who is a Deductor and Deductee?
• TAN – Tax Deduction and Collection Account Number
• TDS Process
• What is TDS?
• Who is Involved in TDS?
• TDS Process Breakdown (Step-by-step for Salaries)

TDS on Salary

• TDS on Salary (Sec 192)
• Person responsible for deduction of tax
• Time of deduction of tax
• Rate of deduction of tax
• Points to remember
• TDS on Withdrawal of Provident Fund (Sec 192A)

Form 12B, 12BB & 12BA

• Form 12B, 12BB, and 12BA
• Form 12B
• Key details that may be included in Form 12B
• Form 12BB
• Key details that may be included in Form 12BB
• Form-12BA

Computation of TDS on Salary

• Computation of TDS on Salary
• Step 1: Determine Salary Components
• Step 2: Compute Estimated Salary Payable to the Employee during the year
• Step 3: Add Income received from Previous Employer (Form 12B) & any other Income of the Employee
• Step 4: Calculate Taxable Income and TDS considering the Form 12BB
• Step 5: Re-compute the Taxable Income & TDS
• Step 6: Remittance of TDS
• Comparison between Old and New Tax Regime (From FY 2025-26 onwards)
• Step 6: Remittance of TDS to the Government

TDS Payment

• TDS Remittance Process
• 1. Login & Navigate.
• 2. Select Assessment year and Section
• 3. Enter TDS details & Make Payment
• Step-by-Step Process to Pay TDS Online
• 1. Login & Navigate to the Payment Page
• 3. Fill TDS Payment Details & Complete Payment

Case Study 1

• Case Study 1

Case Study 2

• Case Study 2

Assignment

• Assignment

Chapter 2: TDS on Other than Salary

Introduction

• Tax Deducted at Source (TDS)
• Who is Deductor and Deductee?
• TDS Process
• TDS on Other than Salary
• Income Tax TDS on the GST component of the Invoice
• Introduction to TDS (Other than on Salary)
• What is TDS (Other than on Salary)?
• TDS Deduction & Deposit Cycle

TDS on Interest

• TDS to be deducted against payment of Interest
• 1. Interest on securities (Sec 193)
• Form 15G / 15H
• 2. TDS from Interest other than interest on securities (Section 194A)
• 1. Section 193 – TDS on Interest on Securities

TDS on Commissions

• TDS to be deducted against Commission payments
• 1. Insurance Commission (Section 194D)
• 2. Commission on the sale of lottery tickets (Section 194G)
• 3. Commission or brokerage (Section 194H)

TDS on Rent

• TDS on Rent (Section 194I and 194IB)

TDS on Contract

• Payments to contractors and sub-contractors (Section 194C)

TDS on Winnings

• TDS to be deducted from payments of Winnings
• 1. Incomes under Sec 194B & 194BB (Both 1 & 3 are to be understood together)
• 2. Winnings from online games (Section 194BA)
• TDS on Winnings – Sections 194B, 194BA & 194BB

TDS on Profession

• Fees for professional or technical services (Section 194J)

TDS on Others

• TDS to be deducted (others)
• 1. Dividends (Section 194)
• 2. Payment in respect of maturity of a life insurance policy (Sec 194DA)
• 3. Payment on transfer of certain immovable property other than agricultural land (Section 194-IA)
• 4. TDS on cash withdrawal (Section 194N)
• 5. Section 194-O – TDS on payments made to e-commerce participants
• 6. Section 195 – TDS on payment to Non Residents

TDS and TCS on Purchases & Sales

• TDS and TCS on Purchases & Sales
• TDS u/s 194Q
• Tax Collected at Source (TCS) on sale of goods – S. 206(1H)
• Tax Collected at Source – Section 206(C)

Payment

• TDS Remittance Process
• 1. Login & Navigate
• 2. Select Assessment Year and Section
• 3. Enter TDS Details & Make Payment
• Sample copy of Challan has been shown for your reference
• TDS Payment / Remittance Process

Case Study 1

• Case Study 1

Case Study 2

• Case Study 2

Assignment

• Assignment