Tax Deducted at Source

TDS (Tax Deducted At Source)

TDS (tax deduction at source) is a method of collecting tax on income, dividends, or asset sales in India that requires the payer (or legal intermediary) to deduct the tax payable before delivering the remainder to the payee (and the tax to the revenue authority). Income tax must be deducted at source under the terms of the Indian Income Tax Act of 1961.

Any payment made under these rules must be made after a certain proportion of income tax has been deducted. It is administered by the Central Board for Direct Taxes (CBDT), which is part of the Indian Revenue Service’s Department of Revenue. When conducting tax audits, it is extremely important. The assesse must also submit a quarterly return to the CBDT. The TDS deducted and paid to the government during the quarter are listed on the returns.

FAQ's - Frequently Asked Questions

What does TDS mean in terms of wages and other payments?

TDS (Tax Deducted at Source) is a sort of tax imposed by the Indian government in which taxes are collected on a ‘pay as you go’ basis. Taxes are deducted at the source of payments such as an employee’s wage or other payments such as a broker’s commission.

The employer deducts taxes before making a payment to an employee, which are then deposited with the government. The company then provides employees with form 16 and other deductees with form 16B, which serves as proof of tax payment.

What is the purpose of Form 26Q?

The deductor must provide Form 26Q for TDS details on all payments other than wages on a quarterly basis. TDS deducted under section 200(3) of the Income Tax Act for TDS under sections 193 & 194 (interest on securities, dividend securities, professional fees, directors’ salaries, etc.) must be reported on Form 26Q.

When is it necessary to submit an online return?

For some people, submitting the quarterly return online is required. If the deductor is the following: a government establishment Under section 44AB of the Income Tax Act, 1961, a company’s principal officer is obligated to have their accounts audited for the previous year. If a statement has 20 or more records of deductees for any quarter of a financial year. Letz Manage Professionals will assist you with this.

Is there any penalty or interest if Form 24Q and Form 26Q are not filed on time?

If you do to deposit TDS before the due date, you will be subject to the following penalties:

Fee for late filing (if you do not file by the deadline)
Attractiveness (if you do not deposit the TDS amount in time)
Sanctions (if TDS is not filed within one year of the due date)

I have more than ten vendors for whom I need to deduct TDS returns. Is it possible for you to provide me some advice?

Our service allows you to file TDS returns for up to 100 employees and 10 deductees. Our staff will advise you on the fees if your company has more than 100 employees or ten deductees. Please send us an email at hello@Let’smanage.com

Is it necessary for all deductors to provide their PAN?

For non-government deductors, quoting the PAN is required, however for government deductors, “PANNOTREQD” must be included on the form.

Does the plan cover a revised return?

The plan does not include revised return filings due to faulty information provided by the assessee during the original return filing.