TDS Certificate : Form 16D Details

Form 16D is a TDS Certificate issued by a Payer for payment of a commission, brokerage, contractual fee, the professional fee under section 194M. It contains details of the nature of payment and TDS deducted on it. Section 194M has been applicable from the 1st of September 2019. Thus, Form 16D can be downloaded from FY 2019-20 onwards. The taxpayer can download Form 16 from the TRACES portal.

As per the section, if the payments to resident contractors and professionals exceeding INR 50,00,000 Lakhs during the Financial Year, the payer/deductor has to deduct tax at the rate of 5% from the sum payable to a resident payee/deductee.

Upload Form 16
File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

Upload Form 16

File ITR Online

India’s fastest growing Tax Filing Platform

[Rated 4.8 stars by customers like you]

As per the Central Board of Direct Taxes (CBDT) notification, the due date of payment of TDS on payments to resident contractors and professionals is within a period of thirty days from the end of the month in which the payment has been made. Hence, Form 16D has to be issued 15 days from the date of issuance of Form 26QD.

For example, A professional payment of INR 65 Lakhs has been made in the Financial Year 2019-2020. The payment is made on the 15th of August. Hence, the tax deducted must be deposited with the government and Form 26QD should be filed on or before the 30th of September. Furthermore, the deductor should also issue the Form 16D TDS certificate by October 15.

Sample Form 16D

Details of Form 16D

  • Name and address of Deductor and Deductee
  • PAN/Aadhaar number of the Deductor and Deductee
  • Financial Year of Deduction
  • Transaction Details
  • Details of Tax Deposited
  • Challan Identification Number

FAQs

Who is responsible to deduct the TDS on payments to resident contractors and professionals under section 194M?

The Payer/Deductor being an Individual or a HUF (not liable to tax audit u/s 44AB) would have to deduct the TDS at the rate of 5% and deposit the same with the government by filing Form 26QD.

What is Form 26QD?

The Form 26QD is the challan-cum-statement for reporting the transactions liable to TDS on payments to resident contractors and professionals under section 194M of the Income-tax Act, 1961.

Is Form 16D different from Form 16A?

Form 16D is the TDS Certificate issued by a taxpayer i.e. payer to the deductee i.e. payee with details of nature of payment and TDS deducted on it u/s 194m.
Form 16A is the TDS Certificate issued by a deductor for non-salary payments like professional fees, brokerage, commission, interest, rent, contractual payment, etc. It contains details of the nature of payment and TDS deducted on it.

What is the due date of payment of TDS deducted on the payment made to the resident contractors and professionals u/s 194M?

The due date of payment of TDS on payment made to the resident contractors and professionals is within a period of thirty days from the end of the month in which the payment has been made. Moreover, the Form 16D has to be issued within 15 days from the date of issuance of Form 26QD.

What is the fee in Form 26QD and when is it applicable?

As per section 234E of the Income-tax Act, 1961 read with Rule 31A (4B) of Income-tax Rules, 1962, failure on part of deductor (Payer/Deductor) to furnish challan-cum-statement in Form 26QD electronically within 30 days from the end of the month in which the tax deduction is made will attract levy of fee for default in furnishing statement at the rate of INR 200 for every day to be paid by the deductor (Payer/Deductor).

Form 27C: Declaration of exemption under TCS

Form 27C is a declaration form for non deduction of TCS by buyer of goods to the seller. As per the income tax rule, the seller of the specified goods must collect tax from the buyer.

Declaration in Form 27C can be made by the buyer who is a resident in India, and uses purchased goods for the manufacturing, processing or production of goods/ article. Buyer gives a declaration, in duplicate in Form 27C.

A copy of the declaration has to be given to the person collecting tax. And the person collecting this declaration form has to submit the copy to the authorities concerned on or before the seventh day of the following month.

Details required to file Form 27C

Form 27C has two sections that needs to be filed in and signed by both the buyer/ declarant and seller/ collector. Following are the details required:

  • ​Part I: Contains information of Buyer such as Name, PAN, Address, Contact Details, List of goods procured and the purpose towards which the purchase is intended.
  • ​Part II: Contains information of Seller such as Name, PAN, TAN, Address, Contact Details, Date on which declaration is furnished.

Apart from the above information, the sale receipt of the goods in question also needs to be furnished.

FAQs

Who can not claim lower/nil TCS deduction?

Form 27C can not be used for tax exemption under TCS where goods are being purchased for the purpose of trading.

How do I download Form 27A TDS?

Form 27A is generated by TDS/TCS FVU (File Validation Utility). Form 27A is automatically created upon the successful generation of the FVU file of TDS/TCS Return. Form 27A contains particulars of Name and TAN of deductor and control totals of ‘amount paid’ and ‘income tax deducted at source’.

Is it mandatory to file nil TDS return?

As per the Income Tax Act, 1961 and the Income Tax Rules, it is not mandatory to file a NIL TDS Return.

What is Challan Status Inquiry (CSI) file?

Deductor can download summary of challans from TIN in CSI format. Using CSI file, deductor can verify his/her tax payments have been properly accounted for. The tax payer can view the details in two ways

  1. CIN based view
    • Using BSR Code of Collecting Branch, Challan Paid on Date & Challan Serial No. and amount (optional)
  2. TAN based view
    • Using TAN and Challan Paid on Date

How to download CSI file?

  1. ​Go to TIN OLTAS

    ​Go to TIN OLTAS to download your CSI file.

  2. ​Click on TAN Based View

    ​From two given options click on TAN Based View

  3. Enter TAN, Date, Captcha

    Once you select your view, then you have to enter TAN number, Challan Paid on Date, Captcha

  4. Download Challan File

    Click on Download Challan file and download the CSI file.

FAQs

What is OLTAS?

OLTAS stands for an Online Tax Accounting System which maintains records of tax paid through banks (online or offline mode). Once banks upload data regarding tax payments, records can be checked online by entering either challan details or TAN.

Can I check challan status if I don’t have tax deposit receipt

You need to have tax deposit receipt to check the status online. If you have lost or misplaced it then you can ask the bank for an acknowledgement which contains Challan details. With these details you can check the challan status online.

How to check TDS status by PAN card?

1. Visit the TRACES portal
2. Key-in the verification code
3. Click on the Proceed option
4. Enter the PAN and TAN
5. Select the financial year as well as the quarter and the type of return
Click on ‘Go’
6. The details will be displayed on the corresponding screen

Form 27A: Online TDS Verification Form

What is Form 27A?

Form 27A is a simple form containing a summary of quarterly e-TDS/TCS return. The deductor must sign it and fill it in a paper along with a return at the nearest TIN Facilitation Center. It has particulars of deductor/collector, total amounts of TDS/TCS. Furthermore, it also has particulars related to total tax deposited against the total number of deductees or party records.

The TDS/TCS file validation Utility (FVU) generates the form after successful validation of the return. Filing a separate form for each e-TDS/TCS statement is important.

Instruction to fill Form 27A

While submitting this form, one should ensure that:

  • ​The TDS/TCS FVU (File Validation Utility) generates the form
  • There is no overwriting/striking on the form. If there is any, Please make necessary changes in the file, validate and generate new it from File Validation Utility (FVU).
  • Name and TAN of deductor and control totals of ‘amount paid’ and ‘income tax deducted at source’ mentioned on it should match with the respective totals in the e-TDS/TCS return.
  • The fields of Form 27A should be complete. The responsible person has to sign it.

FAQs

Who should sign Form 27A?

It is the summary of the TDS/TCS return. It has to be signed by the responsible person who is designated to sign the same.

How to verify TDS return using Form 27A?

It must be signed and filed in a paper by deductor along with a return at the nearest TIN Facilitation Center.

What is the time limit for filing revised TDS return?

31st of subsequent month of Quarter is due date to file return. If you revise within due date of normal filling then no interest or penalty. If on reveision after due date a liability is raised then such liability needs to be paid with interest and penalty.

Form 27EQ: TCS on Income

What is Form 27EQ?

Form 27EQ is a TCS Return/ Statement holding information of Tax Collected at Source by seller while receiving payments from buyer on specified goods. It is required to be submitted quarterly on or before the due date. Details of Tax Collected and paid to the credit of central government are covered in Form 27EQ.

List of specified goods on which TCS is collected

Following are the goods on which tax is collected at source:

  • Alcoholic Liquor for human consumption
  • Tendu leaves
  • Timber obtained under a forest lease
  • Timber obtained by any mode other than under a forest lease
  • Any other forest produce not being timber or tendu leaves
  • Scrap
  • Minerals, being coal or lignite or iron ore
  • Bullion if consideration exceeds Rs. 2 lakhs or Jewellery if consideration exceeds Rs. 5 lakhs. (Or on any amount which is received in cash)
  • Sale of Cars (New and Old) when sale is above Rs. 10 lakhs.
  • Sale of any goods in cash exceeding Rs. 2 lakhs.
  • Providing any service (other than one on which TDS has been deducted) exceeding Rs. 2 lakhs.

What are the details required to file Form 27EQ?

Following details are required to file Form 27EQ:

Entity Details
Collector / Seller TAN, PAN, Name, Address and Contact Details.
Responsible Person Name, PAN, Address and contact Details
Challan Challan serial number, BSR Code, TDS, Surcharge and Education Cess paid
Deduction Name of Buyer, PAN, Total value of purchase, TCS amount collected and deposited.

What is the due date to file Form 27EQ?

Due date for Payment of TDS deducted on salary for every month is 7th of the next month. For the month of March, it is 30th April of the next year.

Due date for filing of Form 27EQ for every quarter is as follows:

Quarter Period Due date for filing Form 26Q
Q1 1st April – 30th June On or before 31st July
Q2 1st July – 30th September On or before 31st October
Q3 1st October – 31st December On or before 31st January
Q4 1st January – 31st March On or before 31st May

FAQs

What is Form 27EQ?

Form 27EQ – TCS Return contains all details pertaining to tax that is collected at source. According to Section 206C of the Income Tax Act 1961, this form must be filed every quarter. The form has to be submitted by both the corporate and government collectors and deductors.

What is the difference between Form 26Q and Form 27Q?

The Form 27Q is submitted by the deductor every quarter and is relevant for TDS u/s 200(3) of the Income Tax Act of 1961. Form 26Q is used for TDS on additional income such as interest, bonus, or any other sum owed to NRI or foreigner.

How do I get Form 27A?

The Form 27A is generated by TDS/TCS FVU (File Validation Utility). Form 27A is automatically created upon the successful generation of the FVU file of TDS/TCS Return. Form 27A contains particulars of Name and TAN of deductor and control totals of ‘amount paid’ and ‘income tax deducted at source’.

Form 27Q: TDS on payments to NRI

What is Form 27Q?

Form 27Q is a TDS Return/ Statement containing details of TDS deducted on payments other than salary made to NRI. Form 27Q is required to submitted on quarterly basis on or before the due date. As per Budget 2016, Non-resident Indians without PAN is not subject to higher rate of TDS. Hence, higher rate of TDS will not apply to NRIs without PAN subject to prescribed conditions. Form 27Q contains details of payments made and TDS deducted on payments made to NRI by the deductor.

What are the payments covered under Form 27Q?

Every deductor who makes payment of certain nature to NRI is required to deduct TDS from such payment at prescribed rate. Following are the nature of payments covered in Form 27Q:

  • Payments to non-resident Sportsmen/Sport Associations.
  • Other sums payable to Non-Residents.
  • Income in respect of Units of Non-Residents.
  • Payments in respect of Units to an Offshore Fund.
  • Income from Foreign Currency Bonds or Shares of Indian Company Payable to Non-Resident.
  • Income of Foreign institutional investors from securities.
  • Income by way of interest from Infrastructure Debt fund.
  • Income by way of interest from Indian company engaged in certain Business.
  • Income by way of interest on certain bonds and Government Securities.
  • Payment of accumulated balance of provident fund, taxable in the hands of the employee.
  • Investment fund paying an income to a unit holder.
  • Income in respect of investment in securitization trust.

What are the details required to file this Form?

Following details are required to file Form 27EQ:

Entity Details
Deductor TAN, PAN, Name, Address and Contact Details.
Responsible Person Name, PAN, Address and contact Details
Challan Challan serial number, BSR Code, TDS, Surcharge and Education Cess paid
Deduction Deductee Name, PAN, Amount paid/ credited, TDS deducted and deposited.

In case of non-availability of PAN with NRIs, additional details of NRI such as Tax Identification Number, Permanent Address, Country of residence, Email and Contact details are required to be furnished in Form 27Q.

What is the due date to file Form 27Q?

Due date for Payment of TDS deducted on salary for every month is 7th of the next month. For the month of March, it is 30th April of the next year.

Due date for filing of Form 27Q for every quarter is as follows:

Quarter Period The due date for filing Form 26Q
Q1 1st April – 30th June On or before 31st July
Q2 1st July – 30th September On or before 31st October
Q3 1st October – 31st December On or before 31st January
Q4 1st January – 31st March On or before 31st May

FAQs

What is Form 27Q?

Form 27Q is the statement of the return for the non-salary payments done to an NRI. The Indian buyer is required to submit the form 27Q at every quarter before the due date. As per the Financial Budget of 2016, on-Resident Indians who do not have a PAN number are not supposed to pay a higher rate of TDS.

What is form 27EQ?

Form 27EQ is a quarterly statement that mentions details and information regarding tax collected at source at the end of every quarter as per Section 206C of the Income Tax Act 1961.

Who is eligible for TDS?

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such a specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

Form 26Q: TDS on other than Salary

What is Form 26Q?

Form 26Q is a TDS Return/ Statement containing details of TDS deducted on payments other than salary. It is required to be submitted on quarterly basis on or before the due date. Details of payments made and TDS deducted on such payments by the deductor are covered under Form 26Q.

What are the payments covered under Form 26Q?

Every deductor who makes payment of certain nature is required to deduct TDS from payment amount. Following are the nature of payments covered in this form.

Details required to file Form 26Q

Following are the details required to file in this form:

Entity Details
Deductor/ Employer TAN, PAN, Name, Address and Contact Details
Responsible Person Name, PAN, Address and contact Details
Challan Challan serial number, BSR Code, TDS, Surcharge and Education Cess paid
Deduction Deductee/ Employee Name, PAN, Amount credited/paid, TDS amount deducted and deposited

What is the due date to file this Form?

Due date for Payment of TDS deducted on other than Salary for every month is 7th of the next month. For the month of March, it is 30th April.

Due date for filing of Form 26Q for every quarter is as follows:

Quarter Period Due date for filing Form 26Q
Q1 1st April – 30th June On or before 31st July
Q2 1st July – 30th September On or before 31st October
Q3 1st October – 31st December On or before 31st January
Q4 1st January – 31st March On or before 31st May

FAQs

What is Form 26Q?

Form 26Q is a statement made for tax deducted at source for all payments except salaries. While submitting it, a deductor has to submit TAN.

What is form 27EQ?

The Form 27EQ is a quarterly statement that mentions details and information regarding tax collected at source at the end of every quarter as per Section 206C of the Income Tax Act 1961.

Who is eligible for TDS?

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such a specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

Form 24Q: TDS on Salary

What is Form 24Q?

Form 24Q is a TDS Return/ Statement containing details of TDS deducted on salary of employees by employer. Form 24Q is required to be submitted on quarterly basis on or before the due date. It has details of salary paid and TDS deducted from salary payment to the government.

Who is required to file Form 24Q?

Employers are required to deduct TDS from payment of salary made to employees. Hence, all the employers (i.e; company, firms etc) are required to file Form 24Q with income tax department on quarterly basis. TDS needs to be deducted from salary income of employee when his income for a particular year is more than basic exemption limit.

Details required to file Form 24Q

Following are the details required to file this Form:

Entity Details
Deductor/ Employer TAN, PAN, Name, Address and Contact Details
Responsible Person Name, PAN, Address and contact Details
Challan Challan serial number, BSR Code, TDS, Surcharge and Education Cess paid
Deduction Deductee/ Employee Name, PAN, Amount of Salary paid, TDS amount deducted and deposited

In addition to above details, Annexure II needs to be filed only for the final quarter (Q4) of the year. It contains Salary Details of each employee.

What is the due date to file Form 24Q?

Due date for Payment of TDS deducted on salary for every month is 7th of the next month. For the month of March, it is 30th April of the next year.

Due date for filing this Form for every quarter is as follows:

Quarter Period Due date for filing Form 24Q
Q1 1st April – 30th June On or before 31st July
Q2 1st July – 30th September On or before 31st October
Q3 1st October – 31st December On or before 31st January
Q4 1st January – 31st March On or before 31st May

FAQs

What is Form 24Q?

It is used for preparing e-TDS returns for the TDS deducted on salary under Section 192 of the Income Tax Act, 1961. It has to be submitted on a quarterly basis by the deductor. It contains details like salaries paid and the TDS deducted of the employees by the employer.

What is form 27EQ?

Form 27EQ is a quarterly statement that mentions details and information regarding tax collected at source at the end of every quarter as per Section 206C of the Income Tax Act 1961.

Who is eligible for TDS?

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such a specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

Form 13 : An application for Non-Deduction/ Lower Deduction of TDS/TCS

What is Form 13?

The deductor/payer deducts tax at the time of making payment to the payee. And the deductee/payee claims the same at the time of filing ITR as per Form 26AS. Sometimes the total tax liability of a payee is less than TDS deducted on his income. And he does not wish to wait till the end of the year to claim a refund of tax deducted. In these cases, under section 197 payee can make an application for Non-Deduction/ Lower Deduction of tax in Form 13 to his Assessing Officer (AO). Form 13 is required to be filed separately for each financial year. And the same needs to be given to the deductor for lower/Non-deduction of TDS/TCS.

Need help in filing Form 13?
Let our expert guide you.
[Rated 4.8 stars by customers like you]
Need help in filing Form 13?
Let our expert guide you.
[Rated 4.8 stars by customers like you]

Example

Ajay is a freelancer and has earned income from a project with a company. The company paid fees of Rs. 5,00,000. During the FY 2019-20, he has no other income. The Company will deduct TDS at the rate of 10% while making payment of fees. Here his total tax liability is zero, since rebate of Rs. 12,500 is available on income up to Rs. 5,00,000 in FY 2019-20. Hence Ajay can make an application for lower/Non-Deduction of TDS in Form 13.

Who can make an application in Form 13?

A payee/taxpayer can file an application to the Assessing Officer(AO) to give a certificate for Non/Lower deduction of TDS/TCS. An application can be made for the following incomes:

  • Salary Income
  • Dividend Income
  • Interest Income
  • Contactors Income
  • Insurance Commission
  • Brokerage or Commission
  • Lottery Prize/ Commission/ Remuneration
  • Rent Income
  • Professional/ Technical Fees
  • NRI Income u/s 195
  • Compensation on acquisition of Immovable Property
  • Income from units of investment fund
  • Income from investment in securitization trust

Note:  Form 15G/15H is filed for any interest on FD or interest on other than interest on securities is received.

When to make an application in Form 13?

The payee can make an application any time during the financial year. However, it is a good practice to make an application at the beginning of the year for income earned throughout the year.   

What are the details required for filing Form 13?

Following are the details required:

  • ​Name and PAN of a taxpayer.
  • The Nature of payment received.
  • Details of income for the last 3 years.
  • Details of payment of tax for the last 3 years.
  • Tax deducted/ paid for the current year.
  • Projected current year’s income.
  • Details of exempt income if any for the current year.

Application Process

The Payee can make an application in Form 13 to AO in the following manner:

  • Online: An application can be made online by the payee. It is advised that payee/ taxpayer files complete and correct details required for processing the application. Once an application is processed and AO is satisfied with the application he will issue the certificate. This Certificate is only valid for the specified deductors and hence only those deductors can deduct tax at a lower rate and not all the deductors.
  • Manually: An application can be made manually to the AO where online application is not accepted. You can download the form 13 from here.

FAQs

What is lower TDS deduction certificate?

Lower Deductions/No deductions u/s 197 certificates are given to the deductor by the deductee. It can be obtained by the Deductee from the Assessing Officer (AO) after submitting relevant information in Form 13.

What if employer does not deduct TDS?

In case the tax isn’t deducted by the employer then the actual tax paid might not be sufficient to cover your full tax liability. And a penalty under section 221 shall be levied.

At which rate deductor should deduct TDS?

The deductor needs to deduct TDS at the applicable rate. However, if certificate for lower/no deduction of TDS is given by the deductee then it should be deducted at lower rate.