Difference Between TDS in IT and TDS in GST By SAG Infotech

TDS or Tax deducted at source is a type of tax which is deducted by a company making a payment, only if the amount exceeds the threshold limit. The TDS rates and applicability are different for Income Tax and GST returns.

TDS in Income Tax


Rate of TDS u/s 194C

In all cases, it is applicable at 1%

For others, it’s 2%

Rate of TDS

In all cases, it is applicable at 1%

Applicable only if Deductor falls in Tax Audit

(Individual/HUF/Partnership or Company with turnover above 1cr)

Applicable in several cases like

Department of Central Government or State Government

Local Authority

Governmental Agencies

Others as may be notified

Deduction limit

In a single payment; INR 30000 Or 1 lakh Per Annum

Deduction limit

INR 2.5 lakh in a Single Contract


Challan payment (Last Date)

It’s 7th of the coming month

However, for March, it is 30 April

Challan payment (Last Date)

It is 10th of the coming month

For March, the Date is the same

TDS Return

It is scheduled to be filed quarterly post one month from the end of the quarter

Except last quarter

For quarter April-June, it’s 31st July

For quarter July-Sep, it’s 31st Oct

For quarter Oct-Dec, it’s 31st Jan

While for quarter Jan-March, it’s 31st May


Prescribed Form is Form 26Q


TDS Return

It is scheduled to be filed monthly by 10th of next quarter

The prescribed form is GSTR 7

TDS Certificate

This certificate is to be provided quarterly post 15 days of filing TDS Challan

For late payment, the levied penalty is INR 100 per day

TDS Certificate

The certificate is to be furnished month post 5 days of filing TDS Return

For late payment, the charged penalty is INR 100 per day and maximum up to INR 5000

Therefore, we have found almost all the underlying differences between the TDS in Income tax and TDS in the GST. All these points will certainly help the readers in gaining additional information regarding the topic and will make them much more confident in their further endovour over the TDS in both the IT & GST arena. For more such article, we ask everyone to comment and find more and more relevant and educating content on such topics through our experienced professionals

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