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Procedural Compliance - Coggle Diagram
Procedural Compliance
TAX DEDUCTED AT SOURCE (TDS)
As per the provision of section 191 of the Act,
concept of TDS was introduced with an aim to collect tax from the very source of income as per which a person (deductor) who is liable to make payment of specified nature to any other person deduct tax at source and remit the same into the account of the Central Government tax has been deducted at source would be entitled to get credit of the amount
Objectives of Tax Deducted at Source
help the government to get funds throughout the year and run the government
enable the salaried people to pay the tax as they earn every month
check that tax payment is not avoided by unscrupulous income tax assesses
TDS APPLY ON
Salary [Section 192]
Premature Withdrawal from Employees’ Provident Fund Scheme (EPFS) [Section 192A]
Interest on Securities [Section 193]
Dividends [Section 194]
Interest other than Interest on Securities [Section 194A]
Winnings from Lotteries or Crossword Puzzles [Section 194B]
Winnings from Horse Races [Section 194BB]
Payment to Resident Contractor or Sub-contractor [Section 194C]
Insurance Commission [Section 194D]
Payment in respect of Life Insurance policy [Section 194DA]
Payment in respect of Deposits under National Savings Scheme etc. [Section 194EE]
Commission on sale of lottery tickets [Section 194G]
Commission or Brokerage [Section 194H]
Rent [Section 194-I]
Payment on transfer of certain immovable property other than agricultural land [Section 194-IA
TDS on payment of Rent by certain Individuals/HUF [Section 194IB]
TDS at on Joint Development Project [Section 194-IC]
Professional and Technical Fees [Section 194J]
Payment of Compensation on acquisition of Capital Asset [Section 194LA]
Income by way of interest from infrastructure debt fund [Section 194LB]
Income from units of a Business Trust [Section 194LBA]
Income by way of interest from Indian company engaged in certain Business [Section 194LC]
Income by way of interest on certain bonds and Government securities [Section 194LD]
Payments of other sums to Non-Residents [Section 195]
Income payable “Net of Tax” [Section 195A]
Interest or dividend or other sums payable to Government, Reserve Bank or certain
corporations [Section 196]
PERMANENT ACCOUNT NUMBER [SECTION 139A]
required to furnish a return of income under Section 139(4A)
Penalty of Rs.10,000/- is imposable u/s 272B for failure to comply with the provisions of section 139A.
Quoting of PAN
Sale/purchase of any immovable property valued at Rs. 10 lakhs or more, valued by the stamp valuation
authority under section 50C at an amount exceeding Rs. 10 lakhs.
Sale/Purchase of Motor vehicle or a vehicle (excluding two wheeled vehicle, inclusive of any detachable
side-car having an extra wheel) which requires registration under Motor Vehicles Act, 1988.
Time deposit exceeding Rs. 50,000 with a Bank/Banking Company/Banking Institution.
Deposit exceeding Rs. 50,000 in Post Office Savings Bank.
Contract for sale/purchase of securities exceeding Rs. 1 lakh.
Opening an account [not being time deposit mentioned in (c)] with a Bank/Banking Company/Banking
Institution.
Application for installation of a telephone connection including mobile phone.
Payments to hotels of bills exceeding Rs. 50,000 at any one time.
Payment in cash for purchase of bank drafts or pay orders or banker’s cheque for an amount of Rs.
50,000 or more during any one day.
Deposit in cash aggregating Rs. 50,000 during any one day.
Payment in cash in connection with travel to any foreign country of an amount exceeding Rs. 50,000 at
any one time.
Making an application to any banking company or to any other company or institution for issue of a
credit or debit card.
Payment of an amount of Rs. 50,000 or more to a Mutual Fund for purchase of its units.
Payment of Rs. 50,000 or more to a company for acquiring shares or debentures or bonds issued by it.
Payment of Rs. 50,000 or more to RBI for acquiring bonds issued by it.
Payment of an amount of Rs. 50,000 or more as life insurance premium to an insurer.
Payment to a dealer
(i) of an amount of Rs. 5 lakh or more at any one time, or
(ii) against a bill for an amount of Rs. 5 lakh or more for purchase of bullion or jwellery.
Payment as life insurance premium to an insurer of Rs. 50,000 or more.
Sale or purchase, by any person of goods or services of any nature other than those specified above -
Amount exceeding two lakh rupees, per transaction.
Quoting of AADHAAR NUMBER [Section 139AA]
Category A
Every person who is eligible
In the application for the allotment of PAN
In the Income tax return
Category B
Every person who has been allotted
PAN as on July 1, 2017
Power Delegated to Central Government
TAX DEDUCTION ACCOUNT NUMEBER (TAN)
TAN Number is a 10 Digit Alphanumeric Number and is used as an abbreviation for Tax Deduction and Collection
Account Number
TAN Number can be applied for online as well as offline. For making a TAN Application online, a person shall
file his application in Form No. 49B on the following website of NSDL