TDS Certificate Due Date Reminder – 14th September 2025

Tax Deducted at Source (TDS) is an important mechanism under the Income Tax Act that ensures tax is collected at the time of payment or credit, whichever is earlier. Deductors are not only responsible for deducting tax but also for issuing TDS Certificates to deductees within the prescribed timelines.

For the month of July 2025, the due date for issuing TDS Certificates under Sections 194-IA, 194-IB, 194M, and 194S is 14th September 2025. Let’s break down what each section means and why compliance is crucial.

1. Section 194-IA – TDS on Sale of Immovable Property

Section 194-IA applies when an individual buys immovable property (other than agricultural land) valued at ₹50 lakhs or more.

  • TDS Rate: 1% of the property value.

  • Responsibility: The buyer must deduct TDS before making payment to the seller.

  • TDS Certificate: The buyer should issue Form 16B to the seller by the due date.

👉 Example: If you buy a house worth ₹60 lakhs, you must deduct ₹60,000 as TDS and deposit it with the government. The seller should receive Form 16B from you.

2. Section 194-IB – TDS on Rent by Individuals/HUF

Section 194-IB applies when an individual or HUF (not liable to tax audit) pays rent of ₹50,000 or more per month.

  • TDS Rate: 5% of the rent amount.

  • Deductor: Tenant (payer of rent).

  • Deductee: Landlord (recipient of rent).

  • TDS Certificate: The tenant must issue Form 16C to the landlord.

👉 Example: If you pay ₹60,000 as monthly rent, you must deduct ₹3,000 (5%) as TDS and deposit it.

3. Section 194M – TDS on Payments to Contractors & Professionals

Section 194M covers individuals and HUFs (not required to deduct TDS under other provisions) making payments for contractual work, professional fees, or commission exceeding ₹50 lakhs in a year.

  • TDS Rate: 5% of the payment.

  • Deductor: Individual/HUF making payment.

  • TDS Certificate: The deductor must issue Form 16D to the payee.

👉 Example: If you hire a contractor for home construction and pay ₹60 lakhs, you must deduct ₹3 lakhs (5%) as TDS.

4. Section 194S – TDS on Virtual Digital Assets (VDA/Crypto)

Section 194S was introduced to regulate taxation on cryptocurrency and digital asset transactions.

  • TDS Rate: 1% of the transfer value.

  • Applicability: On transactions involving crypto, NFTs, or other virtual digital assets.

  • Deductor: Buyer of the digital asset.

  • Deductee: Seller of the asset.

  • TDS Certificate: The buyer must issue Form 16E to the seller.

👉 Example: If you buy Bitcoin worth ₹5 lakhs, you must deduct ₹5,000 (1%) as TDS before making payment.

Why Timely Issuance of TDS Certificates is Important

Issuing TDS Certificates on time is not just a compliance formality but also ensures transparency between deductor and deductee.

🔹 Proof of Tax Deduction – Helps deductees claim tax credit while filing their Income Tax Return (ITR).
🔹 Avoid Penalties – Delay in issuing certificates may attract penalties under Section 272A.
🔹 Smooth ITR Filing – Deductees can easily reconcile TDS entries with their Form 26AS and Annual Information Statement (AIS).
🔹 Trust Building – Strengthens financial trust between payer and payee.

Compliance Timeline for July 2025

  • Transaction Month: July 2025

  • Due Date to Issue Certificates: 14th September 2025

  • Forms to be Issued:

    • Form 16B (for 194-IA)

    • Form 16C (for 194-IB)

    • Form 16D (for 194M)

    • Form 16E (for 194S)

Key Takeaways

  1. Check Applicability – Know whether your transactions fall under 194-IA, 194-IB, 194M, or 194S.

  2. Deposit TDS on Time – Ensure TDS deducted is deposited with the government within the due date.

  3. Issue Certificates – Provide the respective TDS Certificate (Form 16B, 16C, 16D, or 16E) to the deductee.

  4. Avoid Penalties – Stay compliant to prevent penalties and maintain tax records accurately.

How Taxla Services Can Help

At Taxla Services P. Ltd, we simplify compliance for businesses, professionals, and individuals. Our team of experienced tax practitioners ensures that your TDS obligations are fulfilled on time – from deduction, deposit, and return filing to issuing certificates.

📞 Contact us today: +91 7305701454
📧 Email: auditsiva2@gmail.com
🌐 Website: www.taxlaservices.com

Final Word

The deadline of 14th September 2025 for issuing TDS Certificates (for July 2025 transactions) under Sections 194-IA, 194-IB, 194M, and 194S is fast approaching. Timely compliance not only avoids penalties but also ensures smooth ITR filing for deductees.

👉 Stay proactive, issue certificates on time, and keep your tax records accurate with expert support from Taxla Services.

#BestAuditorInTamilnadu #TDS #TaxCompliance #TaxFilingInChennai #TaxlaServices



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