If deductee does not have a PAN then TDS will be deducted at higher of

• Rate specified as per section
• Normal rate applicable
• At 20%

TDS amount is determined by applying applicable rate to credit/payment amount as per section. Net Payment = Payment Amount – TDS

TDS is to be deposited by the 7th of every month for payments made in the previous month, 30th of April in case of payments made in March. For payment made on 15th January, TDS must be deposited by 7th February.

TDS must be calculated and deducted on payment made to purchase the property if:

• Payment exceeds Rs. 50 Lacs
• At 1% deduction rate
• TDS must be deposited within 30 days

Salary income is charged at slab rate and TDS is deducted by calculating average rate.

Average Rate of Tax on Salary= Total Tax * 100/Total Income

To calculate the TDS you need to deduct on payments:

1. Select deductee type
2. Select the residential status of the deductee
3. Enter the type of payment to select the applicable section:
4. Enter the payment date
5. Enter the payment amount
6. Select if PAN of the deductee is available or not