The nonresident taxpayers are allowed ITR exemption on IFSC investments as per the notification...
TDS or Tax Deducted at Source is a process of collection of tax by the Government of India at the time when the transaction takes place. Here the tax is deducted from the creditor’s account at the time of payment. The deducted amount is then deposited to the Income Tax department. Through TDS some portion of the tax is automatically transferred to the income tax department. TDS is also considered as a method of tax-reducing evasion. However, TDS is not deducted while making payments to lawyers, doctors and paying of rents. The person who makes the payment is called a deductor and the person receiving the payment is known as deductee.
The deductor apart from depositing the tax should file TDS return. A TDS Return is to be submitted quarterly to the Government. Different TDS deductions have various return forms. The deductors need to file TDS return on time.
TDS is deducted for the following types of payments:
The details required to register TDS Returns are:
Organizations and employers with a valid Tax Deduction and Collection Account Number (TAN) can file TDS Returns.
For the below-mentioned payments TDS is to be presented:
The process to file TDS return is mentioned below:
The details of the various sections involved in the filing process are mentioned below:
The TDS is to be deposited with the Government within 30 days from the end of the month when the deduction is made. Failure to do so will attract penalties and interest. Not filing TDS Returns as per due dates attract monetary penalties.
There is an exception under Section 271 H of the Income Tax Act where the penalty is not charged even when returns are not filed in the due date, provided following conditions are applicable:
Section 201(1A) of the Income Tax Act,1961 provides interest rates for the following two situations if tax is not deducted at source:
|Issue||Interest Rates||Period of Interest|
|Delay in deduction of TDS||1% per month||From the due date of deduction|
|Delay in payment of TDS||1.5% per month||From the month in which TDS was deducted to the date of payment of Tax|
TDS needs to be submitted quarterly. Various due dates are mentioned in the box below:
|TDS on salary –Form 24Q||Quarter 1-31st July Quarter 2-31st October Quarter 3- 31st January Quarter 4- 31st May|
|TDS on all forms except salaries-Form 26 Q||Quarter 1-31st July Quarter 2-31st October Quarter 3- 31st January Quarter 4- 31st May|
|TDS on all payments made to non-residents except salaries-Form 27Q||Quarter 1-31st July Quarter 2-31st October Quarter 3- 31st January Quarter 4- 31st May|
|TDS on sale of property-Form 26 QB||30 days from the end of the month in which TDS is deducted|
|TDS on rent||30 days from the end of the month in which TDS is deducted|
Our experts help in the quick filing of TDS Returns before the due date. Follow the due date from preventing you from paying penalties.
TDS is deducted on the gross amount, which is paid by the payee to the receiver. The filing of TDS returns is mandatory as per the general provisions of the Income Tax Act, 1961. The returns should be filed quarterly. The penalty is imposed for late payment of TDS Returns. It is advised to use a professional’s help to prevent oneself from getting in all types of hassles. The experienced professional checks on all the prerequisite documents and completes the process accordingly.
Also, Read: File the Income Tax Refund with the Help of Experts.