TDS(TAX DEDUCTED AT SOURCE)

A person can have different sources of income (income). Income tax is a direct tax (direct tax) they are required to pay and depends on which tax bracket their total income (income) falls. According to the Indian tax system, tax deducted at source (TDS), i.e. tax deduction at source, is an important term in taxation (taxation), which has a significant effect on taxpayers (tax payers).

It is a way for the government to collect income tax and it is convenient for the deductee (the person whose income is deducted from it) as it is automatically deducted.

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WHAT IS THE BENEFITS OF TDS?

टीडीएस टैक्स चोरी पर नियंत्रण रखने में मदद करता है।

इस पद्धति में टैक्स पेयर (करदाता) को वित्तीय वर्ष के अंत में वार्षिक कर के रुप में एक बड़ी राशि का भुगतान करने की आवश्यकता नहीं होती।  

TDS APPLICABLE TO THE FOLLOWING SOURCES:-

when you are making payments as an individual taxpayer, you need to deduct TDS on certain payments. The following type of payments that attract TDS:

1. Salary Transfer
2. Professional Fee
3. Consultation Fee
4. Rent Payments
5. Commission
6. Interest on Securities & Deposits
7. Dividend on company shares and mutual funds
8. Lottery and similar winnings
9. Payment of Royalty

TDS RETURN & TYPES OF DEDUCTOR

Individuals

Body of Individuals

Association of Individuals

Partnership Firms

Hindu Undivided Family

Limited Companies

Local Authorities

TDS ON SALARY

TDS on salary: – As per Sec 192 of Income Tax Act 1961, an amount of TDS is deducted by the employer on the income (salary) given by him to his employer for the work done by him as an employee.

TDS is always deducted on the monthly basis on the salary amount

For deducting TDS, Employer must have TAN number and the employee should have PAN, so that TDS is deducted at minimum rate.

Salary includes: –

1. Basic Salary

2. Allowances

3. Perquisites

4. Retirement benefits

FORM 24Q

This form must be filled up for declaration of a citizen’s TDS returns in detail. The form information is based on a citizen’s salary payments and the deductions made for tax. The declaration and payment are to be made quarterly by companies and firms in India. Details such as Deductor , Deductees , Challans as well as Salary TDS must be provided.

FORM 26Q

When a taxpayer pays taxes, the payee deducts TDS on certain occasions. Form 26Q is used to file TDS details on payments made other than salary. The form mentions the total amount that is paid during the quarter and the TDS amount that has been deducted. Form 26Q has to be submitted on a quarterly basis. In this article, we look at the various aspects of TDS Form 26Q in detail.

FORM 27Q

Form No. 27Q is the statement of TDS return that is required to be filed when tax is deducted and deposited while making payments (other than salary) to non- residents.

FORM 27EQ

Form 27EQ consists of all the details about the tax collected the source. This is a quarterly statement according to the Section 206C of the Income Tax Act, 1961. Corporate and government collectors and deductors are required to submit Form 27EQ.

Form 27EQ is a quarterly statement that mention details and information regarding tax collected at source at the end of every quarter as per Section 206C of the Income Tax Act 1961.

Who is required to submit Form 27EQ?

The following entities are required to submit Form 27EQ

Corporate deductors and collectors

Government deductors and collectors

TDS RATE CHART 2020-2021

FORM16

Form 16 is a certificate issued by an employer evidencing the TDS which is deducted from your salary and deposited with the authorities.

It contains the information you need to prepare and file your income tax return. It is issued annually, on or before 15th June of the next year, it immediately follows the financial year in which tax is deducted. Form 16 essentially has two components to it- Part A and Part B.

In case you lose your Form 16, a duplicate can be issued by your employer.