TAX DEDUCTION AT

SOURCE
(TDS)

CONCEPT AND
CALCULATION OF TDS

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INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

BONAFIDE CERTIFICATE

This to certify that the project report titled “TAX

DEDUCTION AT SOURCE(TDS)” has been prepared by
ADITI BHATIA at Jabalpur branch of “The Institute Of
Chartered Accountant Of India” for the fulfillment of
100 hours ‘Information Technology Training’ to get the
required Certificate.
Mr. Kirit Patel Mr. Vishal Karanjikar
(Chairman) (Lecturer)
Mr. Manoj kori
(Lecturer)
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 ACKNOWLEDGEMENT

It bring me immense pleasure along with the hint of humility to take

the opportunity to express my heart full thanks to “The Jabalpur Branch,
The Institute Of Chartered Accountant Of India ” for their enduring support
throughout the course & providing excellent lab facilities.
I would also like to extend my heartiest thanks to my instructor Mr.
Vishal Karanjikar and Mr. Manoj Kori for their overwhelming support &
valuable guidance toward the completion of my project. Sir, your
painstaking help would always form a large chunk of my cherished
memory with the institute.
Finally , I wish to thank the Panel for taking out precious time from
your busy schedule and attend our presentation and encouraging us.

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 TAX DEDUCTION AT SOURCE

The total income of an assessee for the previous year is

taxable in the relevant assessment year. For example, the total
income for the P.Y. 2007-08 is taxable in the A.Y. 2008-09.
However, the income-tax is recovered from the assessee in
the previous year itself through-

TAX DEDUTION AT SOURCE (TDS)

PAYMENT OF ADVANCE TAX

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 TDS – MAJOR HEADS

 TDS on Salary [sec 192]

 TDS on Interest paid on securities [sec 193]
 TDS on Deposits [sec 194A]
 TDS on Contract [sec 194C]
 TDS on Prof. & Tech. Service [sec 194J]
 TDS on Rent [sec 194I]
 TDS on payment made to Non Resident
[sec 195]

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 SURCHARGE FOR THE AY 2009-10

 Surcharge is applicable @ 10% on Tax

 Education Cess is applicable @3%[2% EC and 1%
SHEC] on Tax plus Surcharge
 Surcharge is not applicable in the following cases:
– If the recipient is an individual, HUF, BOI or AOP
and the aggregate of payment made during the
financial year does not exceed Rs.10 lakh, or
– If the recipient is a Co-operative society, local
authority, firm or a domestic company and the
aggregate of payment made during the financial
year does not exceed Rs. 1 crore
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 TDS ON SALARY [SEC 192]

If amount of taxable salary of an employee is

expected to be more than exempted limit of Rs.
100000 then the employer should deduct tax at
source.
Such Income Tax has to be calculated at the
average rate of income tax computed on the basis
of the rates in force for the relevant financial year
in which the payment is made, on the taxable
salary of the assessee.

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 TDS CALCULATOR FOR SALARY
TDS CALCULATOR.xls

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 TDS ON CONTRACT [SEC 194C]

 NATURE – Payment made to any resident

contractor for “work contract” including supply
of labour for carrying out any work
 APPLICABILITY – Where a single payment
exceeds Rs. 20000/- or aggregate payment during
the FY exceeds Rs. 50000/-
 RATE OF TDS – 2% [1% in case of Advertising
contract and payment to subcontractor]

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 TDS CALCULATOR FOR CONTRACT
TDS CALCULATOR.xls

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 PRESENTED BY:
ADITI BHATIA
REG. NO. CRO215161
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