Tax Deducted at Source (TDS)
The Payment of Tax by any of the following methods is treated as Income Tax paid
- Tax Deducted at Source
- Tax Collected at Source
- Advance Tax
- Self Assessment Tax
What is TDS?
TDS or Tax Collection is a Indirect method of Tax collection by government in India, the person making the payment has to withhold a portion of payment and only the balance amount after withholding the Portion of amount has to be remitted, The portion of amount (TDS) which has been deducted has to be paid to the credit of the central government within the time prescribed.Tax Deducted at source :- The Income Tax Act, 1961 contains the provisions for Tax Deduction at Source.
- TDS has to be deducted by the payer of the money at the time of payment to payee at the rates specified under the Income Tax Act 1961
- A Deductor is a person responsible for tax deduction at source on specified types of payments made by it.
- The tax so deducted has to be deposited in the government account with in the time as may be prescribed.
- The Deductor also has to report the tax deducted in a statement 24Q or 26Q or 27Q or 27EQ as applicable within the prescribed time.
Why TDS?
- The revenue will be collected early by the government.
- Prevents tax evasion.
- Steady source of revenue for the government.
- As tax gets collected liability of the deductee to pay advance tax decreases.
Rate of TDS
The Income tax act has specified the rates for withholding the tax if the payment is made above the threshold limit, Any payment made above the the threshold limit is subject to TDS and TDS has to be deducted on the overall payment amount.
Click on the year for Rates of TDS
Due date for deposit of TDS
The tax so deducted has to be deposited to the credit government account by 7th of the following month in which the amount is deducted and the amounts deducted in the month of march are to be paid by April 30.
How to pay TDS?
The TDS can be paid online by following the link
TDS Return
The Deductor who has deducted TDS has to report the tax deducted in the Following Statements
Form
No.
|
Particulars
|
Periodicity
|
Form 24Q
|
Quarterly return of
deduction of tax in respect Salaries
|
Quarterly
|
Form 26Q
|
Quarterly return of
deduction of tax in respect of all payments other than "Salaries"
|
Quarterly
|
Form 27Q
|
Statement of
deduction of tax for the payments made to NON-Resident
|
Quarterly
|
Form 27A
|
Physical control
chart containing control totals mentioned in TDS return furnished
electronically.*
|
With each e-TDS
return
|
Form 27B
|
Physical control
chart containing control totals mentioned in TCS return furnished electronically.**
|
With each e-TCS
return
|
* Form 27A in physical form to be submitted along with
electronic TDS return (e-TDS)
**Form 27B in physical form to be submitted along with
electronic TCS return (e-TCS)
Due Dates for filing of E-TDS Return
The deductor who has to file TDS return has to file within the due date as specified in the following table
Due
Dates For Filing of E-TDS
|
|||||
Quarter
|
Period
|
Form 24Q
|
Form 26Q
|
Form 27Q
|
Form 27EQ
|
Q1
|
April to June
|
31st July
|
31st July
|
31st July
|
31st July
|
Q2
|
July to September
|
31st October
|
31st October
|
31st October
|
31st October
|
Q3
|
October to December
|
31st January
|
31st January
|
31st January
|
31st January
|
Q4
|
January to March
|
31st April
|
31st April
|
31st April
|
31st April
|
Issue of TDS Certificate?
Every deductor who has deducted TDS has to issue Form 16 in case of TDS has been deducted under the head salary or 16A in any other case with in the time specified below
Quarter
|
Period
|
Form 16
|
Form 16A
|
Q1
|
April to June
|
15th August
|
15th August
|
Q2
|
July to September
|
15th November
|
15th November
|
Q3
|
October to December
|
15th February
|
15th February
|
Q4
|
January to March
|
31st May
|
15th June
|
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