What is section 194G of Income Tax Act?
As per section 194G of Income Tax Act, who are either Distributors, Purchasers, or Sellers receiving income in the form of Commission, Remuneration, or prize on the sale of lottery tickets are liable to pay taxes.
What is the limit and rate of TDS under section 194G?
The Deductor is liable to deduct TDS only if the amount exceeds INR 15,000.
The deductor is liable to deduct TDS at the rate of 5%.
No Surcharge and Educational Cess will be levied on the above TDS rate.
If the Deductee has not quoted his PAN then the rate of TDS will be 20%.
Read Also : Payments to non-resident sportsmen or sports associations
When to Deduct TDS under section 194G ?
TDS should be deducted earlier for the following:
- At the time of credit of such income to the account of the receiver.
- At the time of payment in Cash/Cheque/ECS or any other mode.
How can we get Lower/NIL TDS Certificate u/s 194G?
The payee can request to Assessing Officer for a Lower/NIL TDS certificate in Form No. 13. If the payee receives the certificate from the officer then he can submit the same to the Payer so that he deducts TDS according to that. The person who is applying for such a certificate should have a valid PAN.
What is the Time Limit on Depositing TDS under section 194G?
Particulars | Time limit to deposit TDS |
If the amount is paid or credited in the month other than March | Within 7 days from the end of the month is which deduction is made |
If the amount is paid or credited in the month of March | On or before 30th April |
Read Also : TDS on Payment of Life Insurance Policy
What is the Time Limit for TDS Return for section 194G?
The deductor i.e Payer is liable to deduct tax under Section 194G of the Income Tax Act. They shall file a Quarterly Return of TDS in Form 26Q.
Particulars | Due Date |
April - June | 31st July |
July - September | 31st October |
October-December | 31st January |
January - March | 31st May |
What is the Time Limit for issuing of TDS statement for section 194G?
The deductor shall be liable to provide a TDS Certificate in Form 16A to the deductee. The deductor can download the form from the TRACES.
Particulars | Due Date |
April - June | 15th Aug |
July - September | 15th November |
October-December | 15th February |
January - March | 15th June |
