Tax Deduction at Source (TDS) is particularly something we all have heard about, but a few of us have little knowledge about it. It is a part of income tax that is specifically applicable on the certain person on certain payments made such as payment of as rent, commission, professional fees, salary, interest, etc. by the persons making such payments. The TDS is applicable at a certain rate and is deducted by the person responsible to deduct TDS in advance before making payment to the recipient. Such recipient will add the gross amount to his income and the sum deducted as TDS will be finally adjusted in his final tax liability.

As per section 203A of the Income-Tax Act 1961, it is compulsory for each eligible person to TDS purposes, in pursuance of which, the Assessee will be provided a unique Tax Deduction Account Number(TAN), and such number shall be required to be quoted during all TDS payments and in all TDS returns thereafter.

TDS registration can be obtained by-

  • Any individual who deducts/gathers tax at source i.e. any individual who is a business which requires him to deduct TDS;
  • Any Association or Body of Persons;
  • A state government authority/Local government authority, or similar organization,
  • A statutory or self-governing association,
  • A trust,
  • a Sole proprietor,
  • a Hindu Undivided Family
  • Partnership Firm/Company

TDS registration in Indore, Madhya Pradesh

Where is the TDS registration number (TAN) used?

TAN number shall be used in case of –

  • For deductions made in salary, interest, profit, and so on.
  • For returns, challans, and certificates.
  • Auto-catching finish address of the individual who deducts tax in the interest of the IT office.
  • Auto-catching of the Postal Index Number submitted with Income Tax Department.

The TAN number so issued, is unique in the sense that, each digit in the TAN number denotes different features such as first four digits are alphabets involving the name of the state/city of the Assessee, the next five digits are numbers including the last one being an alphabet and provide for the name of the applicant. On deducting TDS, the registered assessee will issue a TDS certificate (in forms such as 16, 16A, 16B & 16C) as confirmation for tax collection made by them. For example, banks do issue a TDS certificate in form 16A to the depositor in cases where TDS is deducted from interest generated from fixed deposits. Similarly, Form 16 is required to be issued by the employer to the employee.

Though each eligible assessee needs to obtain TDS registration, it is illegal to hold more than one TAN number and the assesses who do so shall be penalized in accordance of provisions of law;

Applicable TDS Tax Rates in Indore, Madhya Pradesh

Particulars Normal Slab Rates
i. Payment of the accumulated balance of provident fund which is taxable in the hands of an employee. 10
ii. Interest on securities

 

 10
iii. Income by way of dividend

 

 10
iv. Income by way of winnings from lotteries, crossword puzzles, card games, and other games of any sort

 

 30
v. Payment to contractor/sub-contractor

· Individuals/HUF

· Others

 

  

 

1

2
vi. Insurance commission

 

 5
vii. Payment in respect of deposit under National Savings scheme

 

 10

Benefits of TDS Registration in Indore, Madhya Pradesh

Following are some of the benefits linked with TDS registration in Indore, Madhya Pradesh, which include-

  • Easy processing of the Application– Unlike other applications and permissions, the process of TDS registration in Indore, Madhya Pradesh is simple, easy, and faster to process. Once submitted with the authority, it barely takes 7-10 days from the date of submission of application to get TDS registration, which could be done either online or offline, at the convenience of the assessee;
  • Comes with a Lifetime Validity– TDS registration in Indore, Madhya Pradesh is a one-time process that comes with a lifetime validity which relieves the assessee from going through the process of renewal application and payment of renewal fee again and again. Thus, it is allowed at minimal government fee for processing. Thus, a TAN holder doesn’t need to re-apply for renewal of TDS registration and payment of renewal fees from time to time.
  • Serves multiple purposes– Not only TDS registration facilitates the submission of TDS payments to the Central government, but it also allows-
    1. Form 16 Generation;
    2. Submission of TDS returns,
    3. Invoices generation for TDS/TCS certificates and payment challans.
    4. Reconciliation of TDS related data along with assessing details on the IT portal;
    5. Status check for TDS registration and verification process (either through the name of the assessee or TAN number) on the portal;
  • Facilitates communication with Government authorities– TDS registration in Indore, Madhya Pradesh allows the assessee to easily communicate with the Department regarding any query concerning any TDS/TCS service from the up-to-date records of the active TAN details on the portal.
  • Accessibility of Latest input file from the portal- TDS registration allows the assessee to easily download the latest tax input file from the IT portal to correct statements and check the status of challan online in Indore, Madhya Pradesh;
  • Clarity & Transparency– TDS registration in Indore, Madhya Pradesh allows the assessee to file TDS returns, get details such as auto-populated such address and pin code with prior instructions from the Income-tax Department which conveniently allows the TDS holder to fulfill TDS related compliance with clarity & complete transparency in the Income-Tax matters.

Disadvantages of TAN Registration in Indore, Madhya Pradesh

  • Hefty Penalty for Non-compliance- Failure to obtain TDS registration in Indore, Madhya Pradesh and other compliances may lead to the payment of hefty sums of penalty. For instance, failure to obtain TDS registration in Indore, Madhya Pradesh may lead to a penalty of up to Rs.10, 000 maximum. Whereas if the assessee fails to submit TDS returns within the due date may be levied a penalty of up to Rs. 200 per day which can be extended to such an amount not exceeding the applicable TDS amount.

Process of TDS Registration

Process of TDS Registration in Indore, Madhya Pradesh

Situated in the central part of the country, it is widely known as “Heart of India”. This region is connected with vigorous rail network with 550 trains passing across the state daily and a thick network of roads of over 5,000 Km, 5 commercial airports with more than 100 flights operating every day and 6 Inland Container Depots (ICD’s). Thus, it becomes a foremost beneficiary of mega infrastructural projects under both North-East and South-West corridors crossing the region.

Madhya Pradesh is the top-most player among states involved in food processing and agri-based industries. It holds No.1 rank among regions yielding oranges, pulses, oil seeds, aromatic and medicinal plants, soybean and gram. And bags the second position in terms of production of green peas, mustard, grains, tomato, onion, green chilli, sesame and guava. Furthermore, this state has the second highest floriculture produce. A paradise for such industries, it is a home to 8 Food Parks, 2 Mega Food Parks, 45 Industrial areas  for the sector and 5 Agri-export Zones. This state is a leading producer of horticulture crops as well as and provides rewarding prospects for the food processing projects.0020

This state is the only region producing Diamonds in the country. Also, this region has a strong foundation in mineral resources and contributes 14% of the cement production of the country. Oil refinery at Bina has an annual capacity of 6 MMT. These developments in varied sectors are backed by the installed power generating capacity of 23,400 MW, out of which 35% is sourced by renewable energy sources.

NATRAX – Asia’s largest auto testing track is located at Pithampur, Indore, which is spread across 2,000 hectares. Pithampur is a hub of auto clusters with more than 120 units and 450 small to medium units operational. Budni is known for Central Farm Machinery Training and Testing Institute. The government has established institutes for skill development like MSME Technology Centre at Bhopal, Symbiosis Skill University at Indore and Indo-German Tool Room at Indore.

With 20% rate of urbanisation across the state, there are 931 females per 1000 males. 63% of the total population of the region falls between the age group of 15-59 years and is the 5th most populous state of the country, with 73 million people residing i.e. nearly 6% of the country’s population. This state has 2 Central University, 21 State Universities, 27 Private Universities, 298 Engineering Colleges (AICTE approved), 211 Management Institutes, 1155 Industrial Training Institutes, 69 Polytechnic Institutes and 13 Medical Colleges.

The aggregate value of investment opportunities in Madhya Pradesh is nearly $731 bn, comprising of a total of 1342 projects out of which 11 are private and 1331 are Government owned projects, with 214 promoters involved, spread across 56 districts of the state, which makes Madhya Pradesh a paradise for developmental projects in the commercial segment. Prestigious Government schemes are also running here like Pradhan Mantri Awaas Yojana Gramin which values about $59.38 bn, Pradhan Mantri gram Sadak Yojana Project costs a whooping amount of $50.24 bn, Wind Power Project worth $56.47 bn and Solar Power Project with aggregate value of $63.57 bn.

 

Primarily there are two types of TDS applications in Indore, Madhya Pradesh i.e. for obtaining TDS registration on and obtaining TAN number and secondly, for making any change or correction in the TDS application. For the convenience of the assessee, the Central Government has provided online as well as offline TDS registration processes. Provided below is the step-by-step process of obtaining TDS registration which could be used by the assessee online as well as in offline mode.

  • Process of Offline Registration in Indore, Madhya Pradesh

In case any applicant prefers to make an application for TDS registration in Indore, Madhya Pradesh through the offline process, such applicant needs to download form 49B from the online website of the income tax department by logging on to https://incometaxindia.gov.in/Pages/default.aspx. On downloading and printing the form, the applicant shall be required to fill the form and submit it in duplicate along with all the required documents with the nearest TIN facilitation center (TIN-FC) along with a total fee of Rs. 65.00 ( that includes Rs. 55 application and Rs. 18 as GST charges).

  • Process of Online Registration

However, if the applicant wishes to obtain online TDS Registration in Indore, Madhya Pradesh, the applicant shall be required to follow the steps as provided below –

  • Go to www.tin-nsdl.com/index.html and click Services from the drop-down menu and select “TAN”;
  • Click “TAN fresh application” from the list of “category of deductors” and click Select.
  • On clicking the TAN application, the applicant shall be able to view the TAN application as provided on the portal and fill in all the details as prescribed in the form.
  • Fill the form with the prescribed details and click submit.
  • Once the application form is submitted, the applicant shall receive a 14 digit reference number providing details such as-
    1. Name of the assessee
    2. Legal Status (Individual/Sole proprietor/ company/P.firm)
    3. Details of Communication;
    4. Payment related details
    5. Signatures of the assessee
  • Once the reference number is received, the applicant shall be required to get a print-out of the application along with other documents and shall be sent by post to the NSDL e-Governance Infrastructure Limited at such address as provided below-

5th floor, Mantri Sterling

Plot No.341, Survey No.997/98,

Model Colony

Near Deep Bungalow Chowk

Pune – 411016

Documents & Fees required for TDS Application in Indore, Madhya Pradesh

An assessee who needs to obtain TDS registration in Indore, Madhya Pradesh must attach the following documents along with the filled application-

  • Self-attested proof of the registered business address/ individual assessee;
  • Passport-sized photographs following the prescribed specifications
  • TAN applications which are duly filled and signed;
  • PAN card details of the assessee;
  • Certification of incorporation (in case of business entity)
  • Proof of business constitution such as MOA &AOA, partnership deed, LLP Agreement, etc.

Application for correction in TDS form through TRACES

The Traces (TDS Reconciliation Analysis and Correction Enabling System) is an online feature introduced by the Income Tax Department at www.tdscpc.gov.in which has been primarily introduced for helping the taxpayer to make corrections in TDS returns in Indore, Madhya Pradesh. Apart from this, it helps the assesses(taxpayers & tax deductors) to-

  • View taxes and pay them online;
  • View all deposit challan to government.
  • To revise TDS return in case any information is wrong/ contains any wrong data or any correction is required in the TDS return;
  • If Tax Deductor fails to fill right information in the tax challan and wants correction concerning the –Relevant Financial Year / Major Head of Income/Minor head /Relevant Section Code
  • To request for refund of unconsumed challans.
  • For Tax Deductor to find all notices/communications issued from Assessing Officer.
  • Allows correction to both online and offline correction.

Conclusion

TDS registration in Indore, Madhya Pradesh is a simple and easy process that comes with various benefits and lifetime validity. Additionally, each individual must submit their TDS along with their TDS returns before the due –date. Any failure to submit TDS on time in Indore, Madhya Pradesh may lead to a penalty of Rs 200 every day up to such maximum limit which shall not be above the aggregate TDS penalty at any time.

Further, under section 203A of the Income-Tax Act, each eligible person must obtain a TAN registration number for TDS purposes and failure to do the same will attract a penalty of 10,000/-.