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

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