TDS Excel Calculator for FY 2021-22

July 27, 2021 By Damodhar C Off

 TDS Excel Calculator for AY 2022-23

TDS Rate Chart for FY 2021-2022 (Age 2022-2023), TDS Rates in India

What is TDS?

Tax Deduction at Source (TDS) is a mechanism introduced by the Income Tax Department. Under this, the responsible person must deduct a certain percentage of the income as tax before paying it to the recipient. Payment includes salary, commission, professional fees, interest, rent, etc.

Now, let’s have a look at the TDS/TCS rates applicable for the financial year 2021-22 as per the Finance Bill 2021 introduced by the Finance Minister Smt. Nirmala Sitharaman dated February 1, 2021:

ABC Ltd. pays a fee of Rs.50,000 to Mr. X. In this case, the company deducts tax of Rs 5,000. The net payout will be 45,000 INR. This amount will be deposited in the Government account of ABC Ltd.

Who is going to deduct tax at source?

As per the TDS provisions of the Income Tax Act, 1961, every person responsible for making natural payments is required to deduct tax at source. In case of payment made under sections 194A, 194C, 194H, 194I and 194J, all assessees, except the person who is not subject to tax audit of accounts under section 44A of the Income-tax Act, 1961 in the previous financial year, source are liable to deduct tax on

An individual/HUF (tax deductible 194C, 194H or 194J) Rs. 50 lakhs per annum to a resident, then section 194M applies and such payment is tax deductible at the rate of 5%.

What is TDS Certificate?

Section 203 of the Income Tax Act requires the tax deducted to be issued to the taxpayer within a specified period of TDS certificate. This certificate is proof of exemption and payment of the relevant TDS amount to the bank. The statement of certification document is required to be submitted at the time of regular assessment of income tax to adjust the amount of TDS against the tax deductible or payable by the valuer.

What are the types of TDS certificate?

For Salary:

In this case, a certificate should be issued on Form 16 containing details such as calculation, deduction and payment of taxes. It refers to the details submitted in the Form 24 queue.

For Non-Salary:

In this case a certificate in Form 16A showing tax exemption and payment of tax should be issued. Separate certificates should be given to each department. It refers to the details submitted in Form 26Q and Form 27Q.

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