Quarterly Statements of TDS :
As per Section 206 of Income Tax Act all corporate and government deductors are compulsorily required to file their TDS return on electronic media. Every deductor is required to file the quarterly statement of TDS in form specified above for each quarter and as per the dates specified below.
The provisions of quarterly statements of TDS have been introduced in the statute vide section 200(3). Every person responsible for deducting tax is required to file quarterly statements of TDS for the quarter ending on 30th June, 30th September, 31st December, and 31st March in each Financial Year. This statement is to be prepared in Form No.26 Q (for TDS other than salaries), Form No.27 EQ ( for Tax collection at source) and 24Q( for salaries), 27Q(for payments other than salary to non-residents)
Due dates for filing quarterly TDS Returns
Quarter | Due date |
April to June | July 31 |
July to September | October 31 |
October to December | January 31 |
January to March | May 31 |
The Finance Act 2021 has introduced Section 194Q providing for TDS on purchase of goods with effect from July 1, 2021. Section 194Q is similar to Section 206C(1H) which was introduced by Finance Act 2020, to collect tax at source on transactions between a buyer and a seller.
Section 194Q:
Section 194Q applicability on buyers having turnover exceeding INR 10 Crore, rate of deduction 0.1% of the aggregate value of the goods that exceed INR 50 Lakh and 5% in case the seller does not hold a PAN in India.
Section 206C(1H):
Second Proviso to Section 206C(1H) provides that if the buyer is liable to deduct tax under any other provision on the goods purchased by him from the seller and has deducted such amount, no tax shall be collected on the same transaction.
Applicability & Analysis Section 206AB and 206CCA of Income Tax Act, 1961
Section 206AB deals with deduction of tax (TDS) at higher rate whereas Section 206CCA deals with collection of tax (TCS) at higher rate. Since both the sections are similar in nature.
effective from 1st July 2021.
Person should satisfy all the below mentioned conditions
Condition 1 – Person has not filed their Income Tax Return for two previous years immediately preceding the previous year in which tax is required to be deducted/collected
Condition 2 – The time limit for filing of such return of income U/s 139(1) has expired
Condition 3 – Aggregate of Tax deducted/collected at source in each of these two financial year is INR 50,000/- or more
Both Section 206AB/206CCA are not applicable to a non-resident who does not have a permanent establishment in India and following sections.
Further, provisions of section 206AB does not apply to any sum or income or amount paid or payable or credited on which tax is otherwise deducted at source under below mentioned provision of Chapter XVIIB:
Many deductors receive a TDS (tax deducted at source) demand notice from the Income Tax Department. A TDS demand notice could be sent for any one of the following defaults:
D S Jain & Co. Chartered Accountants is established in the year 1997 Practicing into Accounts, Statutory & Internal Audit, Bank Concurrent Audit, Bank Statutory Audit, Direct & Indirect Taxation, Company Law Matters and Management Consultancy.
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Your privacy is important to us.We use personal information you provide solely to respond to your inquiry or process an application form you have completed on various sections of our Website.We typically will not contact you about other matters, unless you specifically request it, nor will we share, rent, or sell your personal information outside our company.
Your privacy is important to us.We use personal information you provide solely to respond to your inquiry or process an application form you have completed on various sections of our Website.We typically will not contact you about other matters, unless you specifically request it, nor will we share, rent, or sell your personal information outside our company.
Your privacy is important to us.We use personal information you provide solely to respond to your inquiry or process an application form you have completed on various sections of our Website.We typically will not contact you about other matters, unless you specifically request it, nor will we share, rent, or sell your personal information outside our company.
