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Salaried employees are inquired for their investment details of any kind at the start of every financial year by their employer. TDS on Salary is deducted according to these investment declarations. Based on the investment declaration statement of an employee, an accountant of an employer estimates the taxable income and deducts the tax every month in the form of Tax Deducted on Source (TDS). Hence, we can conclude that TDS is a mode of collecting income tax. TDS is managed by the Central Board of Direct Tax (CBDT) and it is the part of the Department of Revenues. This amount is collected to keep stable the revenue source of Government and it also helps in preventing tax evasion.
TDS is applicable on:
The employer needs to furnish quarterly TDS return within one month from the end of a particular quarter. Employer issue the form 16 to an employee with complete details of TDS and other complete tax paid. Due dates for the return filing of TDS are as under:
upon the purpose of deduction, the following forms are filed for TDS return:
employer deducts the TDS monthly and deposits it with the government on or
before the due dates. TDS shall be deposited through Challan No. 281. Due dates
for deducting & depositing TDS are as under:
TDS on salary can be calculated by following the procedure:
Also, Read: Updates About TDS on Cash Transactions.
As per the budget 2019, there are no
changes in the slab are introduced, i.e. it is similar to that of FY 2017-18
& 18-19. However, a rebate of INR 12500 will be available for all the
taxpayers with taxable income up to INR 50000 under section 87A.
The penalty under section 234E, fine is imposed
at the rate of INR200 per day until the return is filed. This penalty is
required to be paid until the amount paid as fine is equal to the amount of TDS
required to be paid.
The penalty under section 271H is imposed by the
assessing officer to the person who fails to file the TDS statement within due
date has to pay a penalty of the minimum amount of INR 10000 to the maximum of
Section 201A, interest is paid for the following defaults:
Recommended Article: TDS Penalty in India.
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