TDS Tax Deducted at Source





 TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments. Usually, the person receiving income is liable to pay income tax. But the government with the help of Tax Deducted at Source provisions makes sure that income tax is deducted in advance from the payments being made by you. The recipient of income receives the net amount (after reducing TDS). The recipient will add the gross amount to his income and the amount of TDS is adjusted against his final tax liability. The recipient takes credit for the amount already deducted and paid on his behalf.

Example of TDS 

Shine Pvt Ltd make a payment for office rent of Rs 80,000 per month to the owner of the property. TDS is required to be deducted at 10%. Shine Pvt ltd must deduct TDS of Rs 8000 and pay the balance of Rs 72,000 to the owner of the property. Thus, the recipient of income i.e. the owner of the property in the above case receives the net amount of Rs 72,000 after deduction of tax at the source. He will add the gross amount i.e. Rs 80,000 to his income and can take credit of the amount already deducted i.e. Rs 8,000 by shine Pvt ltd against his final tax liability.

How to upload TDS statements

Follow the below guide for uploading TDS statements on the Income Tax Department website:

  1. Visit Income Tax website. Login with your TAN.
  2. Select e-File > Income Tax Forms > File Income Tax Forms on the dashboard
  3. Select the relevant form and fill in the details
  4. Validate the return using either DSC or EVC.

Types of TDS

Here are some of the income sources that qualify for TDS:

  • Salary
  • Payments to Contractor 
  • Commission payments
  • Sale of House
  • Insurance Commission
  • Interest on securities
  • Interest other than interest on securities
  • Rent Payment 
  • Professional fees
  • Online Gaming
  • Winning from games like a lottery, crossword puzzle, card, etc.

   

How and when to file TDS returns?

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 purpose of the deduction of TDS. Various types of return forms are as follows: Form 26QTDS on all payments except salaries Q1 – 31st July Q2 – 31st October Q3 – 31st January Q4 – 31st May

Form NoTransactions reported in the returnDue date
Form 24QTDS on SalaryQ1 – 31st July 
Q2 – 31st October 
Q3 – 31st January 
Q4 – 31st May
Form 27QTDS on all payments made to non-residents except salariesQ1 – 31st July 
Q2 – 31st October 
Q3 – 31st January 
Q4 – 31st May
Form 26QBTDS on sale of property30 days from the end of the month in which TDS is deducted
Form 26QCTDS on rent30 days from the end of the month in which TDS is deducted

Comments

Post a Comment

Popular posts from this blog

HRA -House Rent Allowance

Image
The House Rent Allowance (HRA) is an important component of the salary that is paid by employers for meeting the accommodation requirements of employees. Even self-employed individuals can claim   tax  benefits for this. What is HRA? HRA, or House Rent Allowance, is a wage given by employers to staff members to cover housing costs associated with leasing a home. The HRA is a crucial part of a person's pay. Both salaried and self-employed people are covered by HRA. According to rule 2A of the  Income Tax Rules , HRA for salaried individuals is accounted for under section 10 (13A) of the Income Tax Act. Similar to this, self-employed people are not taken into account for HRA exemption under this provision but may still be eligible for tax benefits under  section 80GG of the Income Tax Act .  If you have opted for the new tax regime then you cannot avail tax exemption of house rent allowance. HRA is available only under the old tax regime.  HRA Exemption/Deduction Salaried employees a
Read more
Image
  Advance Tax in INDIA Advanced tax is paid by individuals on a second income. The source can be leasing, a lottery win, fixed deposits, referral works, capital gains from equities, or freelancing. The tax will be payable if the total amount exceeds ₹10,000 in a fiscal year. This is as per Section 208 of the Income Tax Act, 1961. This scheme was introduced by ex-finance minister Arun Jaitley in Budget 2016-17 after demonetization came into effect. Who Should Pay Advance Tax? Taxpayers pay only a share or portion of their tax liability before the end of a year. This is often known as tax EMI due to the installment flexibility. Ticking off these eligibility criteria makes you liable for advance tax. Tax liability of more than ₹10,000. A self-employed or salaried person. Have earnings from rents and investments. The advance tax schedule falls under section 44AD. Read on to know how to pay. Steps for Online Advance Tax Payment This can be paid instant from the comfort of your home or on th
Read more

Types Of Income Tax Deductions

Image
  Types of Income Tax Deductions Income tax paid by citizens constitutes a major chunk of the government’s revenue. It is imperative to pay taxes for the smooth functioning of the economy. Often a tedious expense, taxation also has perks to it. Income tax deductions are a relief offered by tax authorities that help individuals lower their taxable income and ultimately reduce their tax outgo in any given financial year. These deductions are in the form of expenses or investments made by the taxpayer during the year. Deductions also inculcate a healthy savings routine. But, what types of deductions under  Income Tax  are most suitable for you? The most popular provisions of income tax deductions include investments made under Section 80C of the Income Tax Act, 1961. These are typically made in  Equity Linked Savings Scheme (ELSS)  funds, Public Provident Fund (PPF), National Pension Scheme (NPS), etc. With these types of deductions, you not only save tax but also earn profit on your inve
Read more