TDS Return Filing

 

TAX DEDUCTED AT SOURCE WHICH IS KNOWN AS TDS IN SHORT FORM IS A TYPE OF ADVANCE TAX WHICH HAS TO BE PAID TO THE GOVERNMENT IN ADVANCE ON EVERY PAYMENT WHICH IS MADE BY ANY COMPANY OR INDIVIDUAL EXCEEDING THE PRESCRIBED THRESHOLD LIMITS OF PAYMENT AND ITS REQUIRED TO DEDUCT TAX AT SOURCE ON THAT PAYMENT.

THE RATES OF TAX DEDUCTED AT SOURCE ARE GIVEN AND PRESCRIBED UNDER INCOME TAX ACT BY THE TAX DEPARTMENT.

THE PERSON OR COMPANY THAT MAKE PAYMENT TO OTHER PERSON AFTER DEDUCTING TDS IS KNOWN AS “DEDUCTOR” AND THE PERSON OR COMPANY WHOSE PAYMENT IS DEDUCTED IS  KNOWN AS “DEDUCTEE”.

THE DUTY OF DEDUCTING THE TDS AND DEPOSITING TO THE GOVERNMENT ON TIME IS CAST ON “DEDUCTOR”.

THE MANNER OF PAYMENT I.E. CASH, CHEQUE OR CREDIT DOESN’T MATTER.

TYPES OF PAYMENT WHICH IS ELIGIBLE FOR DEDUCTION OF TAX AT SOURCE ARE AS FOLLOWS:-

  • INCOME FROM SALARIES
  • INCOME FROM INTEREST EARNED BY BANK
  • RENTAL INCOME (EXCEPT IN CASE OF INDIVIDUALS)
  • COMMISSIONS
  • FEES OF CONSULTATION
  • FEES OF PROFESSIONAL (EXCEPT IN CASE OF PAYMENT MADE BY THE INDIVIDUALS TO THE PROFESSIONAL LIKE LAWYERS AND DOCTORS)

FILING OF TDS RETURN WITH INCOME TAX DEPARTMENT IS MANDATORY AT EVERY QUARTER END .

 

THE FORM WHICH ARE PRESCRIBED FOR TDS ARE DIFFERENT FOR DEDUCTEE OR TYPE OF PAYMENTS:-

1              FORM 24Q           IS FILED QUARTERLY IN CASE OF “SALARIES” PAYMENT

2              FORM 26Q           IS FILED QUARTERLY IN RESPECT OF ALL PAYEMENTS OTHER THAN SALARIES.

3             FORM 27Q           IS FILED QUARTERLY IN RESPECT OF INTEREST, DIVIDEND OR ANY OTHER PAYMENT    TO NON RESIDENTS.

4              FORM 27EQ        IS FILED QUARTERLY IN RESPECT OF TAX COLLECTION AT SOURCE.

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