TDS, or “Tax Deducted at Source”, is a certain percentage of one’s monthly income which is taxed from the purpose of payment. In keeping with the revenue enhancement Act, 1961, every individual or organisation is vulnerable to pay taxes if their income is above a specific threshold.
TDS deduction – when and by whom:
The Tax Deducted at Source must be deposited to the govt by 7th of the next month. In detail, TDS deducted within the month of June must be paid to the govt by 7th July. However, the TDS deducted within the month of March will be deposited till 30th April.
A person making specified payments mentioned under the tax Act are required to deduct TDS at the time of creating such specified payment. But no TDS needs to deducted if the person making the payment is a private or HUF whose books don’t seem to be required to be audited.
Steps to deposit TDS:
Online Mode:TDS is Deposited through the official website of NSDL.
• Login TIN NSDL PORTAL
• Select the relevant challan
• Fill within the challan details
• Confirm challan details
• Make TDS payment
• Online verification
Physical Mode: By furnishing the Challan 281 in the authorized bank branch
TDS return filing:
Filing Tax Deducted at Source returns is mandatory for all the persons who have deducted TDS. TDS return is to be submitted quarterly and various details need to be furnished like TAN, amount of TDS deducted, type of payment, PAN of deductee, etc. Also, different forms are prescribed for filing returns depending upon the aim of the deduction of TDS.
Form 16, Form 16A is TDS certificates of deducting tax at source and issued on deduction of tax by the employer on behalf of the staff. These certificates provide details of TDS / TCS for various transactions deductor between and deductee.
Form 26AS in TDS:
It’s a form that indicates that the tax that has been deducted has also been deposited with the govt. It also reflects details of advance tax/self-assessment tax and high-value transaction entered into by the taxpayer. Form 26As is a statement that provides details of any amount deducted as TDS or TCS from various sources of income of a taxpayer.
Note: It is advisable while filing your e-return (ITR) to upload a pdf format of your form 16 for your fast processing of ITR.
For more details, please visit All India ITR