Tds [Thread 465790] - CiteHR
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Can anyone help me how to calculate TDS and what is the criteria. Regards Shibin.
Hi Shibin,

Please go to the following following to get a sample tax calculation sheet and discussions by members [/I] [/B]

What is TDS:

TDS or "Tax Deductions at Source" is an indirect method of collecting tax from the Income sources. Income Sources implies to the earnings from several financial instruments and business transactions such as sale of property, interest income from banks on savings, commissions and incentives, any kind of payment received for contracts and services, vendors, dividends and awards or prices earned in the form of money.

It is mandatory as per Indian Income Tax rules that companies as well as working professionals who earn above the aforementioned source from the payments they make.

Everyone cant deduct TDS but to do so, one must have 10 digit alpha numeric “Tax Deduction Account No (TAN)” which is required to obtain all person who is liable to deduct or collect tax at source

There is no uniform rate for TDS deduction. Depending on the source of earnings, it can range from 1% for sale proceeds to 30%, which are as follows

Particular of payments and rate of deduction:

01) 1% – TDS on Individual, HUF contractor or sub contractor

02) 2% –TDS on Other contractor, sub contractor except individual and HUF

03) 2% – TDS on Rent on plant and building

04) 10% – TDS on Interest Income

05) 10% – TDS on Rent on land, building and furniture

06) 10% – TDS on Insurance commission (for other assessee except company)

07) 10% – TDS on Insurance commission company

08) 10% – Commission and brokerage

09) 10% –TDS on professional and technical fees

10) 20%/30% –TDS on Payment to NRI

11) 30% –TDS on Winning from Lottery, crossword, puzzles

12) 30% –TDS on Winning from horse races

For more please visit and read the document at : <link fixed>

to download ITR forms : Income Tax India

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