Chapter-4 Tax Deducted at Source and Provisions for TDS

Syllabus
Meaning of TDS - Provisions regarding TDS - TDS to be made from different sources of income, Problems
on calculation of TDS.
Meaning of TDS
TDS or Tax Deducted at source at prescribed rates is made mandatory by the Income Tax Act on certain
persons responsible for making payments. The tax deducted has to be deposited by them to the government.
The recipient of income receives the net amount (i.e., gross income minus tax deducted at source). Usually
over a range of 1% to 30%.
Provision regarding TDS

1
SRIVAIDESHWARI S MCOM,PGDFT,PGCHRM, (MBA)
Assistant Professor, Dept. of Commerce, MSRCASC.
 2
SRIVAIDESHWARI S MCOM,PGDFT,PGCHRM, (MBA)
Assistant Professor, Dept. of Commerce, MSRCASC.
TDS to be made from different Sources of income
TDS is one kind of advance tax. TDS is deducted on the following types of payments:
 Salaries
 Interest payments by banks
 Commission payments
 Rent payments
 Consultation fees
 Professional fee
Income Slab and Tax Rate

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SRIVAIDESHWARI S MCOM,PGDFT,PGCHRM, (MBA)
Assistant Professor, Dept. of Commerce, MSRCASC.
Advance Tax
As the name suggests, advance tax refers to paying a part of your taxes before the end of the financial year.
Also called “pay-as-you-earn” scheme, advance tax is the income tax payable if your tax liability is more
than Rs 10,000 in a financial year. It should be paid in the year in which the income is received. By paying
in advance, you help the government and also yourself by not finding it hard to pay the whole tax at one go
at the end. This way, if your advance tax liability for the financial year2021- 22 has exceeded Rs 10,000,
you are expected topay it in the same financial year.
The deadlines are:
 At least 15 per cent of the liability on or before June 15,
 45 per cent by September 15,
 Not less than 75 per cent by December 15
 And the whole amount of the tax calculated, by March 15 of each financial year.

If the estimate of one’s income changes as the installments progress, the advance tax payable can be
increased or reduced accordingly. Any amount paid up to March 31 will also be accepted as advance tax
for that financial year.

Problem:1
Calculate amount of TDS on salary of Mr. Raja, total tax payable on salary (calculated) Rs 8,00,000.
Problem:2
Mr. A taxable income from salary Rs 5,52,000, loss from HP 50,000 and loss from capital gain Rs 25,000.
Discuss TDS u/s 192.
Problem:3
Mr. S has estimated the following income for the financial year 2023-24
 Income from House property (Taxable) – Rs. 75,000
 Income from Salary – Rs. 7,07,500
 Dividend from X Ltd (an Indian Co.)– Rs. 10,000
Determine the TDS

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SRIVAIDESHWARI S MCOM,PGDFT,PGCHRM, (MBA)
Assistant Professor, Dept. of Commerce, MSRCASC.
Problem:4
Mr. Ajay has the following estimated incomes for the FY 2023-24
 Salaries (Taxable) = 4,90,000
 Income from HP(Taxable) = 1,20,000
 Income from other sources - Interest on securities(Taxable) = 30,000
Calculate TDS
Problem:5 (QP-2021)
Mr. Ajay has the following estimated incomes for the FY 2023-24
 Salaries (Taxable) = 2,50,000
 Income from HP(Taxable) = 7,50,000
 Income from other sources - Interest on securities(Taxable) = 80,000
Compute the advance payment tax
Problem:6 (QP-2020)
Mr. Prashanth has the following estimated incomes for the FY 2021-22
 Salaries (Taxable) = 1,40,000
 Income from HP(Taxable) = 8,00,000
 Income from other sources - Interest on securities(Taxable) = 60,000
Compute the advance payment tax
Problem:7
Mr. K is running a garments shop. Tax Liability is Rs 45,500. Determine the amount of advance tax
payment for AY 2023-24.
Problem:8 (QP-2019)
XYZ Co. Ltd. has an estimated total tax liability of Rs.1,50,000 for the PY: 2022-23
a) What are the due dates for the payment of advance tax?
b) What is the amount of advance tax to be paid on each due date?
Problem:9 (QP-2022)
The following are the estimated incomes of Mr.pramod for the Assessment year 2023- 24.
1. Taxable income from Salary Rs.8,00,000
2. Taxable income from house property Rs.1,80,000
3. Taxable income from business Rs.6,00,000
4. Taxable LTCG Rs.3,00,000
5. Income from interest on Govt. securities Rs.90,000
6. Winning from lottery (gross)Rs.70,000
Compute the amount of various installments of Advance tax payments.
Problem:10 (QP-2020)
Mr.Prashanth estimated the following incomes relevant for the assessment year 2023- 24
1. Computed income from house property Rs.1,40,000.

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SRIVAIDESHWARI S MCOM,PGDFT,PGCHRM, (MBA)
Assistant Professor, Dept. of Commerce, MSRCASC.
 2. Computed income from business Rs.8,60,000. Compute the advance payment tax.
Problem:11
From the illustration details of income compute TDS amount for each transaction:
1. Winning form lottery Rs. 1,00,000
2. Dividend form the listed company Rs. 50,000
3. Mr. Sanju agent of LIC earned a commission of Rs 20,000
4. Rent paid on Building RS. 48,000 per month
5. LIC amount paid to the policy holed by the company on maturity Rs.4,00,000
6. Interest on bank deposits Rs. 20,000
7. Withdraw of premature employee provident fund Rs. 53,000 without furnishing PAN
8. Winning from Horse race Rs. 8,000
9. Compensation for acquisition of Land Rs. 2,60,000
10.Payment of an Individual Contractor whose total payment during FY is Rs. 1,50,000
Problem:12 (QP-2022)
From the following details of income compute TDS for each transaction:
1. Real Estate Brokerage Rs.50,000
2. Rent of Building paid Rs.5,60,000 p.a.
3. Winning from lottery Rs.1,00,000
4. Interest on Post Office Deposits Rs.2,500
5. Agricultural and sale for Rs.40,00,000
6. Mr, Sanju agent of LIC earned a commission Rs.10,000.
Problem:13 (QP-2020)
From the following details compute TDS amount for each transaction.
1. Winning from lottery(Gross) Rs.90,000
2. Real estate brokerage Rs.24,000
3. LIC maturity amount on policy Rs.6,00,000
4. Advance received for Sale of a building (sales valueRs.80,000) Rs.30,00,000
5. Agricultural land sale for Rs.60,00,000 advance received Rs.20,00,000
6. Building rent paid to owner Rs.56,000 p.m.
7. Interest on securities(Gross) Rs.36,000
Problem:14 (QP-2021)
From the following details of incomes, compute TDS amount for each transaction:
1. Dividends from the listed company Rs.1,00,000.
2. Winnings from the lottery Rs.2,50,000.
3. Commission received by LIC agent Rs.50,000.
4. Compensation received for acquisition of land Rs.5,00,000.
5. Withdrawal from employee provided fund without furnishing PAN Rs.50,000.
6. Rent paid on building Rs.80,000 p.m.
Problem:15
The following are the particulars of estimated income of Mr.P for the AY – 2023-24
 Income from salary (computed) Rs. 6,00,000
 Income from House Property(computed) Rs.1,50,000
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SRIVAIDESHWARI S MCOM,PGDFT,PGCHRM, (MBA)
Assistant Professor, Dept. of Commerce, MSRCASC.
  Income from interest on Government securities Rs.1,10,000
 Winnings from lotteries (Gross) Rs. 40,000
Calculate the amount of advance tax payable by him in various installments. Tax of Rs.12,000 has been
deducted at source out of the lottery income and Rs.5,000 from salary income. He has deposited Rs.10,000
in public provident fund.

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SRIVAIDESHWARI S MCOM,PGDFT,PGCHRM, (MBA)
Assistant Professor, Dept. of Commerce, MSRCASC.