SYNOPSIS OF THE PROJECT

TITLE OF THE PROJECT

'TAX DEDUCTION AT SOURCE (TDS)

MANAGEMENT SYSTEM'

OBJECTIVE OF THE PROJECT

TDS - Tax Deducted at Source or best known TDS is one of the

modes of collecting Income-tax from the assessees in India. This is
governed under Indian Income Tax Act, 1961, by the Central Board
for Direct Taxes (CBDT) and is part of the Department of Revenue
managed by Indian Revenue Service (IRS), Ministry of
Finance, Govt. of India.

In simple terms, TDS is the tax getting deducted from the person the amount
(Employee/Deductee) by the person paying such amount (Employer/Deductor).
In the process of TDS, deduction of tax is effected at the source when income
arises or accrues. Hence where any specified type of income arises or accrues to
any one, the Income-tax Act enjoins on the payer of such income to deduct a
stipulated percentage of such income by way of Income-tax and pay only the
balance amount to the recipient of such income.

The tax so deducted at source by the payer, has to be deposited in the

Government treasury to the credit of Central Govt, within the specified time. The
tax so deducted from the income of the recipient is deemed to be payment of
Income-tax by the recipient at the time of his assessment.

Income from several sources is subjected to tax deduction at source. Presently

this concept of TDS is also used as an instrument in enlarging the tax base.
Some of such income subjected to TDS are salary, interest, dividend, interest on
securities, winnings from lottery, horse races, commission and brokerage, rent,
fees for professional and technical services, payments to non-residents etc. It is
always considered as an Advance tax which is paid to the government.

TAN - Tax Deduction Account Number or TAN is a unique identification

number for person deducting the tax. The person who is liable to deduct the Tax
should obtain a TAN before deducting such Tax. 

DEDUCTOR - Under the process of TDS, Deductor is a person/company who is

liable to deduct the Tax at source, from the payment being made to the party.
Deductor is also termed as Employer in cases where the payments are under
Salaries.

DEDUCTEE - Is the person, from whom the tax is being deducted or accrued for
deduction.Depending on the nature of the deduction being made, deductees and
respective submission forms are categorized to 3 types:

1. Salaries: In case of salaries, the deductee is termed as an Employee. All

the information of deductions and payments in this category should be
submitted in Form 24Q to the government.
2. Non-Salaries - Resident: In case of non-salaries and the payment is made
to a resident in India, the deductee is termed as a Deductee or a Party. All
the information of deductions and payments in this category should be
submitted in Form 26Q to the government.
3. Non-Salaries – Nonresident: In case of non-salaries and the payment is
made to a non-resident of India, the deductee is termed as a Deductee or
a Party. All the information of deductions and payments in this category
should be submitted in Form 27Q to the government.

TDS CERTIFICATE - A tax deductor is also required to issue TDS certificate to

the deductee within specified timed under section 203 of the I T Act. The
certification from the deductor, for the deduction and payment of the respective
TDS amount to the bank, issued to the deductee is a TDS certificate.
The deductee should produce the details of this certificate, during the regular
assessment of income tax, to adjust the amount of TDS against the Tax payable
by the Deductee [assessee].

TYPES OF TDS CERTIFICATES

Salaries - Form 16: In case of Salaries, the certificate should be issued in
FORM 16 containing the Tax computation details and the Tax deducted & Paid
details. This refers to the details submitted over Form 24Q.

Non-salaries - Form 16A: In case of Non-Salaries, the certificate should be

issued in FORM 16A containing the Tax deducted & Paid details. Separate
certificates should be prepared for each Section [nature of payment]. This refers
to the details submitted over Form 26Q and 27Q.

TCS Certificates - Form 27D: There is a separate certificate Form 27D, which is

falling under Tax Collected at Source(TCS).

Above are the general information regarding taxation system used in

TDS. With current document our objective is to built a system for a
public sector company to manage TDS properly in their organization.
PROJECT CATEGORY :

RDBMS

‘RELATIONAL DATABASE MANAGEMENT SYSTEM’

 tools/platform and languages to be used

HARDWARE REQUIREMENT:
 Pentium IV Processor
 1 GB RAM
 100 GB Hard disk or onward

SOFTWARE REQUIREMENT:
OPERATING System : WINDOWS XP/07
RDBMS : SQL SERVER
SOFTWARE : Visual Studio .Net 2005 Enterprise Edition
PLATFORM : Internet Information Server 5.0 (IIS)
FRONT END TOOL : ASP.NET

WHY SQL SERVER ?

SQL Server supports wide range of database features, which can be

used to improve the use of database with a wide range of constraints
and validating of rules through constraints of SQL Server, which are
inbuilt with it. Best is remains at backend and works according to
coding. Hundreds of line of code can be written at back end.
FOLLOWING ARE IMMEDIATE BENEFITS USING SQL
SERVER :

 Increase data consistency and security through the use of some

functions throughout the system.
 Reduction of system maintenance time
 Reduction of system maintenance time
 Reduction of redundant code.
 Use of structured programming making it easier to build and
maintain program, etc.
 STRUCTURE DESIGN

‘0’ LEVEL DFD

Tax Deduction at Source

Employee / TDS
person or
company
earning from Issue form 16 /
organization 16A / 27D
 ‘1’ LEVEL DFD

TAX Rates
Person or agency
involving into
organizational activities
E-R DIAGRAM

Access the
Income
Study from

Tax calculation
on Income

TDS
Employee / Others Organization
deduction

Entry in
Printed TDS
TDS reports i.e. form
Tax deduction Submission16 / 16A / 27D
and TIN details
to Income Tax
department
tment.

DFD for TDS Calculation

Income tax dept

Table structure

EMPLOYEE : MASTER DETAILS OF EACH EMPLOYEE

PAN NOT NULL VARCHAR (10)

NAME NOT NULL VARCHAR2(20)
ADR NOT NULL VARCHAR2(25)
FNM NOT NULL VARCHAR2(20)
JOB VARCHAR2(10)
DOB NOT NULL DATE
QUALI VARCHAR2(10)
SEX NOT NULL CHAR(1)
PHONE NOT NULL VARCHAR2(12)
E_MAIL VARCHAR2(30)

AGENCY : MASTER DETAILS OF EACH AGENCY

PAN NOT NULL VARCHAR(10)

ANAME NOT NULL VARCHAR2(20)
ADR NOT NULL VARCHAR2(25)
CONTACT_PERS NOT NULL VARCHAR2(20)
JOIN_DT NOT NULL DATE
E_MAIL NOT NULL VARCHAR2(10)
MODE NOT NULL CHAR(1)
PHONE NOT NULL VARCHAR2(12)
WEBSITE VARCHAR2(30)

SALARY : STAFF SALARY MONTHLY

SAL_NO NOT NULL NUMBER(5)

PAN NOT NULL
MONTH NOT NULL NUMBER(2)
NET_SAL NOT NULL NUMBER
TDS NUMBER
DATE NOT NULL DATE
CHQ_NO NOT NULL VARCHAR2(6)
CHQ_DATE NOT NULL DATE
BANK NOT NULL VARCHAR2(30)
TDS DEPOSIT : COLLECTED TDS DETAILS

CHALLAN_SNO NOT NULL VARCHAR2(5)

AMT NOT NULL NUMBER(10)
COLLECTION_MODE NOT NULL CHAR(1)
DIP_DATE NOT NULL DATE
PAN NOT NULL NUMBER(10)

AGENCY-INCOME : STAFF SALARY MONTHLY

PAY_NO NOT NULL NUMBER(5)

PAN NOT NULL
MONTH NOT NULL NUMBER(2)
NET_PAY NOT NULL NUMBER
TDS NUMBER
DATE NOT NULL DATE
CHQ_NO NOT NULL VARCHAR2(6)
CHQ_DATE NOT NULL DATE
BANK NOT NULL VARCHAR2(30)
FORM16 : ISSUE OF FORM 16 TO EMPLOYEE OVER 24Q

PAN_DEDUCTEE NOT NULL VARCHAR(20)

AMT NOT NULL NUMBER(5)
NATURE_OF_PAY NOT NULL VARCHAR2(10)
DATE_DEP NOT NULL DATE
BRS_CODE NOT NULL VARCHAR2(7)
DATE_ISSUE NOT NULL DATE
PLACE NOT NULL VARCHAR2(20)
PERIOD_FROM DATE
TO_DATE DATE
FULL_NAME NOT NULL VARCHAR2(30)
DESIGNATION NOT NULL VARCHAR2(20)

FORM16A : ISSUE OF FORM 16A TO NON SALARIED OVER

26Q & 27Q

PAN_DEDUCTEE NOT NULL VARCHAR(20)

AMT NOT NULL NUMBER(5)
NATURE_OF_PAY NOT NULL VARCHAR2(10)
DATE_DEP NOT NULL DATE
BRS_CODE NOT NULL VARCHAR2(7)
DATE_ISSUE NOT NULL DATE
PLACE NOT NULL VARCHAR2(20)
PERIOD_FROM DATE
TO_DATE DATE
FULL_NAME NOT NULL VARCHAR2(30)
DESIGNATION NOT NULL VARCHAR2(20)
TCS : TAX COLLECTION AT SOURCE FORM 27D

DEDUCTOR_PAN NOT NULL CHAR(10)

DEDUCTOR_TAN NOT NULL CHAR(10)
DEDUCTEE_PAN NOT NULL CHAR(10)
DATE_DEP NOT NULL DATE
BRS_CODE NOT NULL VARCHAR2(7)
PERIOD_FROM DATE
TO_DATE DATE
FULL_NAME NOT NULL VARCHAR2(30)
DESIGNATION NOT NULL VARCHAR2(20)
NUMBER OF MODULES AND THEIR DESCRIPTION :

 Personal Information Entry System (Employee) : Keeps track of

each employee/staff who are working with organization.
 Agency Information Entry System : Keeps track of each agency
who are getting involved with organization.
 Salary : Payment of monthly salary to the staff.
 Tax Deduction on salary : Salaried staff get deducted their tax.
 Tax Deduction on non salary : tax calculation of Agencies,
brokers, commission agents, etc.
 Tax collection : Tax collection at source TCS.
 Issue of form 16 : salaried staff.
 Issue of form 16A : non salaried persons, organizations
involving income with organization.
 Issue of TCS form 27D : All collected tax amount is submitted
to CBDIT ( Central Board for Direct Income Taxes)
 Cheque entry system : Statement of cheque payments is maintained here.
TYPES OF REPORTS GENERATION :

 STAFF REPORT
 NON STAFF REPORT
 TAX COLLECTION BY STAFF
 TAX COLLECTION BY OTHERS
 TAX SUBMISSION
 FORMS ISSUED
 TAN/PAN SUMMERY, ETC.
TDS RATES FOR FINANCIAL YEAR 2014-15

SURCHARGE / CESS APPLICABLE ON TDS/TCS -

Various situations and Surcharge /Cess applicable on TDS/TCS

Surcharg
Payment to payment e Cess
salary(up to 1
Non-corporate crore) No yes(3%)

Non-corporate salary(> I crore) yes (10%) yes (3%)

Non-corporate other than salary No No

Resident Corporate other than salary No No
salary(up to 1
Non-corporate crore) No yes (3%)
Yes (10
Non-corporate salary(> I crore) %) yes (3%)
other than salary
Non-corporate up to 1 Crore  No yes (3%)
other than salary
(> 1 Crore to 10
Corporate crore) yes(2%) yes (3%)
Non- other than salary
Resident Corporate > 10 Crore yes(5%) yes (3%)
SCOPE OF FUTURE APPLICATION

This project can be used in Telephonic- Online Enquiry for tax

rates, statements, forms, etc. details. Application is to be deigned in
such a manner that global accessing of the staff/others tax status
can become possible. The organization should be up to the reach of
each Internet user.