Taxmann TDS Ready Reckoner Edition April 2025

TDS Ready Reckoner is a comprehensive guide that simplifies the entire spectrum of Tax Deduction at Source (TDS), Tax Collection at Source (TCS), and Statement of Financial Transactions (SFT) provisions as amended up to the Finance Act 2025. It is user-friendly, simplifies complex provisions and incorporates the latest developments, including new sections 194T, 194BA, and the revised rules under sections 194R and 28(iv). It includes detailed commentaries, illustrations, and practical examples. This book aims to help professionals stay up-to-date and confidently handle every TDS/TCS scenario in day-to-day practice.

This book is intended for the following audience:

• Chartered Accountants, Cost Accountants, and Company Secretaries involved in tax compliance and advisory services
• Tax Practitioners and Legal Professionals who need a go-to resource for TDS/TCS/SFT queries and statutory references
• Business Owners, Finance Managers, and Accountants in corporates, firms, and MSMEs seeking clarity on withholding tax obligations
• Students of Professional Courses (CA/CS/CMA/LL.B.) looking for a detailed yet accessible reference for exam preparation

The Present Publication is the 31^st Edition | 2025, amended by the Finance Act 2025. This book is authored by Taxmann’s Editorial Board with the following noteworthy features:

• [Latest Amendments] Updated with the Finance Act 2025, including new section 194T on TDS for remuneration/interest paid by firms to partners, section 194BA on TDS for online gaming winnings, and the latest clarifications on section 194R (TDS on benefits/perquisites)
• [Alphabetical Reckoner] A unique, ready-to-use Alphabetical Reckoner for TDS/TCS/SFT helps you quickly locate specific transactions (e.g., rent, salary, interest, benefits in kind, online games, etc.) and identify the correct withholding provisions
• [Practical Guidance] Contains detailed analysis with illustrations, examples, and FAQs to resolve practical queries on TDS/TCS obligations
• [Comprehensive Coverage] Spans TDS on salaries, interest, dividends, winnings, capital gains, non-resident payments, etc., plus an entire section on TCS (including on Liberalised Remittance Scheme – LRS)
• [Compliance Roadmap] Outlines procedures for TDS/TCS returns, deposit deadlines, certificates, lower/nil deduction certificates, penalties, and consequences of default
• [Special Focus on Recent Changes] Thorough coverage of the newly inserted provisions for online gaming (194BA), Virtual Digital Assets (194S & 194BA references), TDS on partnership firm payments (194T), and TCS on LRS clarifications

The coverage of the book is as follows:

• Division One – Introduction
• Overview of TDS/TCS Provisions – Explains the concept, background, and legislative intent behind withholding taxes
• Division Two – Tax Deduction at Source
• Covers TDS from salaries (Chapter 2), including perquisites, allowances, and special rules for senior citizens
• TDS on Provident Fund (Chapter 3), interest on securities, dividends, and other incomes
• Winnings from lotteries, crossword puzzles, horse races, and the newly introduced winnings from online games (Chapter 7A under section 194BA)
• TDS on contractor/sub-contractor payments, professional/technical fees, brokerage, and commission, with a focus on the latest clarifications from CBDT
• Dedicated chapters on TDS for non-residents, lower/nil TDS certificates, deposit of TDS, filing TDS returns, and TDS certificate issuance
• New Section 194T – Comprehensive analysis of TDS on partner-related transactions (salary, interest, bonus, or commission)
• Section 194R – Deep dive into TDS on benefits or perquisites with references to amended section 28(iv) and relevant Circulars
• Division Three – Tax Collection at Source
• Detailed discussion on TCS for various categories, including alcoholic liquor, scrap, forest produce, and the new provisions on TCS for Liberalised Remittance Scheme (LRS)
• Division Four – Statement on Financial Transactions (SFT)
• Explains SFT provisions, reporting obligations, thresholds, and compliance details for specified transactions
• Alphabetical Reckoner for TDS/TCS/SFT
• A to Z listing of transactions (from advertisement contracts and online gaming to rent agreements and virtual digital assets), mapping them to the relevant withholding/collection rules

The structure of the book is as follows:

• Logical Divisions – The book has four primary divisions (Introduction, TDS, TCS, and SFT). Each division systematically tackles the underlying concepts and their practical applications
• Chapter-wise Explanations
• Each chapter begins with a concise overview of the specific TDS/TCS provision
• Illustrations & Examples dissect complex scenarios, making them easy to grasp
• CBDT Circulars and Notifications are integrated throughout to clarify interpretational issues
• Case Laws and Judicial Rulings are referred to wherever relevant
• User-friendly Flow – The transitions from general principles to advanced topics (like TDS on non-residents, cross-border payments, and digital transactions) ensure progressive learning
• Handy Annexures & Appendices – Contain reference tables, forms (such as Form 15G/H, TDS return filing formats, etc.), and quick checklists for compliance deadlines