Payments to Contractors & Sub-Contractors
Applies to advertising, transport, catering, manufacturing or supplying goods according to customer specifications using customer materials.
Fees for Professional or Technical Services (FTS)
Applies to lawyers, doctors, engineers, architects, interior decorators, consultants, and technical service fees.
Rent (Land, Building, Furniture, or Fixtures)
Applies to rent paid for commercial or residential buildings, plant, machinery, or equipment.
Purchase of Goods (Buyer Turnover > ₹10 Crores)
Deducted by buyer whose turnover exceeds ₹10Cr when aggregate purchase of goods from a resident seller exceeds ₹50L.
Commission or Brokerage
Applies to any commission or brokerage paid to an agent, broker, or distributor for services rendered (other than insurance commission).
Interest other than Interest on Securities
Applies to interest paid on loans, deposits, and non-security financial instruments.
Perquisites / Benefits of Business or Profession
Deducted on providing any benefit or perquisite (free cars, sponsored foreign trips, gift items) arising from business or profession.
Payment by E-Commerce Operator to E-Commerce Participant
Deducted by digital platforms (Amazon, Flipkart, Shopify aggregators) when facilitating sale of goods or services of participants.
Payment in respect of Life Insurance Policy
Applies to maturity or surrender value of life insurance policies not exempt under Section 10(10D).
Rent by Individuals or HUF (Not subject to tax audit)
One-time annual or monthly deduction by individuals/HUF paying high rent without tax audit obligation.
Salary Payments to Employees
Standard employer withholding tax on employee salary income based on declared investments and tax regime.
Sale of Goods (Seller Turnover > ₹10 Crores)
Collected by seller whose turnover exceeded ₹10Cr in preceding FY when sale consideration from a buyer exceeds ₹50L.
Liberalised Remittance Scheme (LRS) & Overseas Tour Packages
Collected by Authorized Dealers on foreign remittances under LRS and tour operators on overseas travel packages.
Sale of Scrap, Alcoholic Liquor, Timber, Tendu Leaves
Collected at source by specified businesses dealing in scrap metal, forest produce, and alcoholic beverages.
Frequently Asked Questions on TDS & TCS Compliance Rates & Deposit Due Dates
What are the Standard TDS Deposit and Quarterly Return Due Dates?
Tax Deducted at Source (TDS) must be deposited to the government treasury by the 7th day of the month following the month in which deduction was made (for March deductions, the deadline is April 30th). Quarterly returns are filed in Form 26Q (non-salary), Form 24Q (salary), and Form 27EQ (TCS).
| Quarter Period | TDS / TCS Deposit Due Date | Quarterly Return Filing Due Date |
|---|---|---|
| Q1 (Apr - Jun) | 7th of Next Month | July 31st |
| Q2 (Jul - Sep) | 7th of Next Month | October 31st |
| Q3 (Oct - Dec) | 7th of Next Month | January 31st |
| Q4 (Jan - Mar) | April 30th | May 31st |
What are the Penalties for Late TDS Deduction or Non-Deposit?
Failure to deduct TDS attracts interest at 1% per month from the date tax was deductible to the date of actual deduction. Failure to deposit deducted TDS to the government attracts interest at 1.5% per month from the date of deduction to the date of actual deposit under Section 201(1A). Late filing fee under Section 234E is ₹200 per day of default until fees equal the deductible amount.
| Default Type | Legal Section | Penalty / Interest Rate |
|---|---|---|
| Failure to Deduct TDS | Sec 201(1) | 1% per month + demand recovery |
| Failure to Deposit Deducted TDS | Sec 201(1A) | 1.5% per month from deduction to deposit |
| Late Return Filing | Sec 234E | ₹200 per day of default |