See.How government steals your income as a name of TDS .Big update on TDS. From Tip to Toe

Hmm.“TDS”, we are very familiar with this word. From age 18 to till death we have to see this deduction in our salary slip ,business income or any other income.

1.So what is TDS?

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 of the amount already deducted and paid on his behalf.

2.Who can deduct tds?

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

However, in case of rent payments made by individuals and HUF exceeding Rs 50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not liable for a tax audit. Also, such Individuals and HUF liable to deduct TDS @ 5% need not apply for TAN.

Your employer deducts TDS at the income tax slab rates applicable. Banks deduct TDS @10%. Or they may deduct @ 20% if they do not have your PAN information. For most payments rates of TDS are set in the income tax act and TDS is deducted by payer basis these specified rates.

3.When TDS need to deduct?

1.       At the time of payment   or

2.       At the time crediting the A/C of payee

Whichever is earlier

But in following cases TDS deducted only at the time of payments:

a.       Salary

b.       Winnings

c.       Maturity of life insurance policy

d.       Compensation on compulsory acquisition of property

4.  Due date for depositing the TDS to thegovernment?

The TDS should be deposited to the government by 7th of the subsequent or next month.

Example:

TDS deducted in the month of may should be paid to the government by 7th of june. However, the TDS deducted in the March can be deposited till 30th April. This grace period is given to entity for finalization of accounts.

Exception:

For TDS deducted on rent and purchase of property, the due date is 30 days from the end of the month in which TDS is deducted.
What is the percentage of TDS?

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5. How to deposit TDS?

Tax Deducted at Source has to be deposited using Challan ITNS-281 on the government portal.

Go to https://www.tin-nsdl.com/ and follow the step in the picture

go to e-payment

open it

then just fillup the form & pay tax
What is the percentage of TDS?

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6. 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 No	Transactions reported in the return	Due date
Form 24Q	TDS on Salary	Q1 – 31st July Q2 – 31st October Q3 – 31st January Q4 – 31st May
Form 26Q	TDS on all payments except salaries	Q1 – 31st July Q2 – 31st October Q3 – 31st January Q4 – 31st May
Form 27Q	TDS on all payments made to non-residents except salaries	Q1 – 31st July Q2 – 31st October Q3 – 31st January Q4 – 31st May
Form 26QB	TDS on sale of property	30 days from the end of the month in which TDS is deducted
Form 26QC	TDS on rent	30 days from the end of the month in which TDS is deducted

What is the percentage of TDS?
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6. What is a TDS certificate?

Form 16, Form 16A, Form 16 B and Form 16 C  are all TDS certificates. TDS certificates have to be issued by a person deducting TDS to the assessee from whose income TDS was deducted while making payment.

For instance, banks issue Form 16A to the depositor when TDS is deducted on interest from fixed deposits. Form 16 is issued by the employer to the employee.

Form	Certificate of	Frequency	Due date
Form 16	TDS on salary payment	Yearly	31st May
Form 16 A	TDS on non-salary payments	Quarterly	15 days from due date of filing return
Form 16 B	TDS on sale of property	Every transaction	15 days from due date of filing return
Form 16 C	TDS on rent	Every transaction	15 days from due date of filing return

What is the percentage of TDS?
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7. TDS credits in Form 26AS

It is important to understand how TDS is linked to your PAN. TDS deductions are linked to PAN numbers for both the deductor and deductee. If TDS has been deducted from any of your income you should get Tax Credit in Form 26AS.

This form is a consolidated tax statement which is available to all PAN holders. Since all TDS is linked to your PAN, this form lists out the details of TDS deducted on your income by each deductor for all kinds of payments made to you – whether those are salaries or interest income – all TDS linked to your PAN is reported here. This form also has income tax directly paid by you – as advance tax or selfassessment tax. Therefore, it becomes important for you to mention your PAN correctly, wherever TDS may be applicable on your income.

8. What is the percentage of TDS?
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