Tax Deducted at Source
Streamline tax compliance seamlessly.
Deduct at source with precision and ease
Home TDS
Streamline tax compliance seamlessly.
Deduct at source with precision and ease
Tax Deducted at Source (TDS) is a mechanism initiated by the Government of India to collect taxes at the point of transaction. It mandates deducting a predetermined percentage of tax when making payments such as salaries, rent, service fees, and contract manufacturing. TDS ensures that tax is collected in advance, facilitating efficient revenue collection for the government. This system not only aids in preventing tax evasion but also distributes the responsibility of tax collection across various sectors, promoting transparency and compliance within the taxation framework.
Salary
Rent
Service fees
Contract manufacturing
In addition to depositing the tax, the deductor must also file a TDS return. This quarterly statement is submitted to the I-T department. Timely submission is mandatory, including details such as:
PAN of the deductor and deductee
Tax amount
TDS challan information and other relevant information
Different forms are utilized for filing TDS returns, based on the deduction purpose. These returns must accompany a signed verification in Form No. 27A, which controls quarterly statements. DeductoRs. file this form along with quarterly statements, summarizing "amount paid" and "income tax deducted at source," matching totals in TDS returns.
| ParticulaRs. | Form No. |
|---|---|
| TDS on Salary | Form 24Q |
| TDS where deductee is a non-resident, foreign company | Form 27Q |
| TDS on payment for transfer of immovable property | Form 26QB |
| TDS in any other case | Form 26Q |
According to Section234E, if an assessee fails to file his/her TDS Return before the due date, a penalty of Rs. 200 per day shall be paid by the assessee until the time the default continues. However, the total penalty should not exceed the TDS amount
If an assessee has not filed the return within 1 year from the due date of filing return or if a peRs.on has furnished incorrect information, he/she shall also be liable for penalty. The penalty levied should not be less than Rs. 10,000 and not more than Rs. 1,00,000.
Due dates of TDS Return FY 2019-20 :
| Quarter | Quarter Period | TDS Return Due Date |
|---|---|---|
| 1st Quarter | 1st April to 30th June | 31st August |
| 2nd Quarter | 1st July to 30th September | 31st October |
| 3rd Quarter | 1st October to 31st December | 31st January |
| 4th Quarter | 1st January to 31st March | 31st May |
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