IMPORTANT TDS SECTIONS

(Which Are Normally & Mostly Use)

1) SECTION ''194H''

Deducted on Commission:-

~Threshold limit = 15000 p.a.

~Rate of interest = 5%

(Example - Brokerage Commission, Agent Commission)

[ Journal Entry ]

:In The Books of Deductor:-

Commission Expense A/c Dr. 20000
To 'Agent A' A/c Cr. 19000
To TDS 194H Payable A/c Cr. 1000

:In The Books of Deductee:-

'Mr. X' A/c Dr. 19000
TDS 194H Receivables A/c Dr. 1000

To Commission Incom A/c Cr. 20000

2) SECTION ''194I''

Deducted on Rent:-

1. Rent on land & building -}

~Threshold limit = ~~1,80,000~~ 2,40,000 p.a.

~Rate of interest = 10%

(Example - office rent, godown rent)

2. Rent on plant & machinery -}

~Threshold limit = ~~1,80,000~~ 2,40,000 p.a.

~Rate of interest = 2%

(Example - Generator rent, Machinery hire charges)

(Threshold limit changed From 1st April 2019)

3) SECTION ''194C''

Deducted on Contract:-

(There are Two Conditions)

1. Condition No. 1 -}

~Threshold limit = 30,000 Single Contract

~Rate of interest = 1) Individual / HUF = 1%
2) Resident other than Individual / HUF = 2%

2. Condition No. 1 -}

~Threshold limit = 1,00,000 p.a.

~Rate of interest = 1) Individual / HUF = 1%
2) Resident other than Individual / HUF = 2%

(Example - Employers, House Keeping, Security, Construction, etc On Contract)
(Which are not covered - Utility Bills of - Telephone, Electricity, Water, if paid directly to agency, TDS not applicable)

4) SECTION ''194J''

Deducted on Professional, Technical & Royalty Fees :-

1. Services of Professional, Technical & Royalty -}

~Threshold limit = 30,000 p.a.

~Rate of interest = 10%

(Example - Engineer, CA, CS, Audit Fees, Salesman, Web Developer etc)

2. Services of Call Center -}

~Threshold limit = 30,000 p.a.

~Rate of interest = 2%

(Example - All types of Call Center Services)

5) SECTION ''194A''

Deducted on Interest :-

1. Interest Pay on Loan -}

(Applicable - If loan has taken from Friends, Relatives & other persons, etc.)
(There are not include the Bank & Other Finance Company)

~Threshold limit = 5,000 p.a.

~Rate of interest = 10%

(Example - Loan taken from - Cousin, Friend etc)

2. Interest Receive From Bank -}

~Threshold limit = ~~10,000~~ 40,000 p.a. (Senior citizens 50,000 p.a)

~Rate of interest = 10%

(Example - Interest receive on Fixed Deposits, Recurring Deposits, etc.)

6) SECTION ''194-O''

1. Applicable On all ecommerce participants

2. Threshold limit 5Lakh only for resident individuals and HUF

3. Rate of TDS 1%

4. Applicable From 1st Oct-2020

5. All ecommerce operator are Liable for deduct under this section

IMPORTANT TDS SECTIONS