TDS Applicability on Payments Made by HUF
• HUF is required to deduct TDS if it falls under the definition of an “assessee liable to tax audit” in the preceding financial year
• Applies to payments like rent (Section 194I), contractor payments (194C), professional fees (194J), etc.
• If TDS provisions are applicable, the HUF must obtain a TAN (Tax Deduction Account Number)
• TDS is deducted at the prescribed rate when making payment exceeding threshold limits
• Deducted TDS must be deposited with the government within specified timelines

TDS Return Filing by HUF
• HUF must file quarterly TDS returns (Form 26Q) through the TRACES portal
• Include details like deductee PAN, nature of payment, amount, and tax deducted
• Returns must be filed by 31st July, 31st October, 31st January, and 31st May for each quarter
• Late filing attracts fees under Section 234E at ₹200 per day (subject to limits)
• TDS certificates (Form 16A) must be generated and issued to deductees

TDS on Income Received by HUF
• Income received by HUF such as interest, dividend, rent, or commission may have TDS deducted by payers
• This TDS is reflected in Form 26AS of the HUF PAN
• HUF can claim credit of TDS while filing income tax return (ITR)
• If excess TDS is deducted, HUF is eligible for refund after return processing
• TDS details must be matched with books and bank statements for accuracy

Declaration for Non-Deduction
• If the total income of HUF is below taxable limit, it may submit Form 15G to avoid TDS on interest income
• Form 15G must be submitted to banks or institutions in the name of the HUF
• PAN is mandatory for declaration; otherwise, TDS will be deducted at a higher rate
• Misuse or incorrect filing of Form 15G can lead to penalties and scrutiny

Compliance and Recordkeeping
• Maintain all TDS challans, payment proofs, and Form 16A issued or received
• Reconcile TDS returns with Form 26AS and AIS (Annual Information Statement)

• Ensure all TDS deductions are timely and correctly deposited to avoid penalties
• Seek professional assistance to manage TDS for high-value transactions
• TDS compliance enhances tax accuracy and reduces scrutiny risks for HUFs