What is TDS and why is it deducted?

TDS kya hai: What is TDS? The simple answer to this question is that TDS is a tax collected by the government. But TDS (TDSIt would not be appropriate to say just about ) it is a long process, so let us know in today’s article TDS kya hota hai, TDS kaise jama karaya jata hai. You will get the answer of all the questions that come in your mind after reading this.

Many people who have more money in the bank or do any business, then they are informed by the bank employees that now you will have to pay TDS because you have asked for more money in the bank. So in this situation people start thinking that What is TDS aur kab katta hai? ,What is TDS and when is it deducted, So that’s why today’s post in which I have told what is TDS?, read the full. So let’s get started.

What is TDS and why is it deducted - TDS kya hai

What is TDS, , What is TDS and when is it deducted?

Let us now know that What is TDS? We all know that tax is collected from us by the government, two types of taxes are collected by the government, first tax is taken directly and second is indirectly. These are also called direct taxes and indirect taxes. TDS is an indirect tax levied by the government which is helpful in preventing tax evasion.

TDS is a form of Paid Tax or it is an Advance Tax. TDS, Income Tax There is such a rule for deducting the tax issued by the department, under which the tax is deducted from the source itself. This tax is deducted at the same time when the person’s income is there. Apart from this, there are other types of TDS which are deposited with the government from time to time. After filing your income tax return at the end of the financial year, the total amount is returned as a tax return. However, it is not only filed once a year, but it is also filed on a quarterly basis.

What is the full form of TDS? What is the Full Form of TDS

The full form of TDS is Tax Deducted at Source, Generally, if we understand, then some part of our income is deducted by the organization giving us salary, it is called TDS which is deducted indirectly by the organization. And the institutions that deduct part of our income get it deposited in the account of the government.

On which payments TDS is deducted?

TDS is deducted on various types of payments like salary, interest, dividend, professional fee, commission, any kind of rent, brokerage, contact payment, PDF is deducted on all these. If you are a businessman, then you will have to deduct TDS from their salary while giving monthly salary to the employees working in your business.

Why is TDS deducted? (TDS kyu katta hai)

By now you must have understood what is TDS, after that the question in your mind will be that why TDS is deducted? If we want to answer this in simple words then we can say that TDS is deducted for running the country.

We can understand from this that the population of India is around one hundred and fifty crores, many facilities are provided by the government for everyone in the country. So money is required to start those facilities, that money is collected from us and you in the form of TDS.

The money will be deposited with the government in the form of TDS, the government returns it in the form of providing many facilities to the public, that is, the tax paid by you, the government provides you better facilities by spending it for the development of the country.

TDS is deducted by whom, when and how much,

What percentage of TDS is deducted TDS is deducted at the time of making payment to the person making the payment as per the Income Tax Act. If a person who is not required to get the books audited, his TDS is not deducted.

However, if the person pays more than Rs 50,000 as rent, he is required to deduct 5% TDS, along with an additional 5% deduction for those who do not apply for TAN. .

The payer deducts 10% TDS on your income and 20% TDS is deducted if your PAN card is not known. The rates of TDS are determined in most of the Income Tax Acts and TDS is paid on the basis of these rates.

If you have submitted investment proof to your employer and if your total income is less than the taxable limit then you will not be required to pay any tax. And on this basis TDS should not be deducted on your income, in this case you can submit Form 15G and Form 15H to the bank so that it does not deduct your TDS.

You can file a return for refund of TDS if you have not produced proof before your employer and TDS has already been deducted by the bank.

What is Form 26AS,

You need to understand that TDS is a matter related to your paint, if any type of TDS is deducted on your income then you need to take tax credit Form 26AS.

This is a type of statement sheet that is available to all PAN card holders, as TDS is a matter related to your PAN, so this form lists the details of TDS deducted on all types of payments made by you, In this form, all the information related to your TDS is reported.

Through this firm you can also pay income tax directly, in the form of advance tax or self assessment tax. That is why keep in mind that you always have to write your pen correctly.

TAN what happens,

TAN is the collection number issued by the Income Tax Department to the person responsible for deduction on payment made to any person.

It is an alpha numerical number consisting of a total of 10 digits, which is mandatory to be mentioned in all TDS returns, payments, other related documents and other communications as per Section 203A of the Income Tax Act 1961. If you do not mention this, then a fine of up to ₹ 10000 can be imposed.

Most of the people believe that TAN and PAN are the same document which is possible to be used interchangeably which is not a correct assumption.

Taxpayers who have deducted TDS must have PAN card as well as TAN. TAN is not required at the time of purchase and sale of immovable property.

Benefits of making TDS payment online,

  • These facilities are open 24 hours for the taxpayers. Taxpayer can pay his tax from anywhere anytime.
  • The online TDS payment is immediately acknowledged by the taxpayers.
  • There is less paperwork for the taxpayers as the acknowledgment is stored in the computer itself.
  • Making TDS payment online is also beneficial for the environment as it uses minimum paper.
  • Online facility is very beneficial for the payer of TDS.

Delay in payment of TDS What will happen by doing Know what will happen when you do not pay TDS?

  • As per section 201(1a) of the Income Tax Act 1961, if one is unable to deduct TDS on payment on the due date, one is liable with interest at 1% per month.
  • If the government fails to deposit TDS even after deducting TDS, then 1.5 percent interest will be charged per month from the date of deduction.
  • As per section 243E of the Income Tax Act 1961, if someone fails to furnish TDS return within the stipulated date, he has to pay ₹200 per day as penalty till the time the return is filed.
  • If the return is not filed for 1 year even after the date of filing TDS return, then a fine of 10000 to 100000 can be imposed.

TDS return filing dates

TDS return is required to be filed every quarter and the due date is 30th of the month following the end of the quarter. And the date for filing TDS return for the last quarter i.e. January to March is till May 31.

Forms related to TDS return

  • Form 24Q – The deductor is required to submit this form at the time of deducting TDS from the salary.
  • 26Q – This form has to be submitted by the deductor for deduction of TDS above payment other than salary.
  • 27Q – After deducting TDS, if the taxpayer has made payment to the NRI, then this form is submitted under the tax deducting section.
  • 27EQ – There is a quarterly return form which is required to be submitted by the taxpayer in case of collecting TCS.
  • 27A – This form is to be submitted along with the quarterly statement while filing the TDS return.

How to pay TDS online? – How to Pay TDS Online?

Listed below are the ways to pay TDS online.

Phase 1 For online payment of TDS, you have to official website will go on.

Phase 2 – After visiting the official website, you have to click on the option of challan number in the TDS section of the website, which will take you to the payment page itself.

step 3 – Enter the following details on this page.

  • If you are paying a company then select Company deductibles in Tax applicable. And if you are paying a person other than a company, then choose the option of non-company deductibles.
  • Select the nature of your payment from the dropdown list.
  • Mode of payment has to be selected.
  • After entering the TAN, select the year for which the payment is to be made.
  • Now you have to enter your address with pin code and also enter your mobile number.
  • After entering the captcha code given below, click on the proceed button.

step 4 – Now a screen will be displayed on the desktop for confirmation of submit it. If the TAN entered by you will be valid then the name of the prescribed A will be polluted on the whole screen.

Step 5 – After all these are confirmed, this website will take you to the site of net banking. From there you have to log in to the bank account with the help of your user ID and password and make the payment.

Step 6 – After successful payment of tax a detail will appear on your desktop screen containing your bank name etc. You can save it as it is proof of payment.

Frequently asked questions related to TDS

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Today in this post we told TDS Kya hai (What is TDS and when is it deducted?), I hope you got help from this post. If you liked this post, then do share it with other people as well. If you still have any question regarding this post (TDS kya hai), then tell us by commenting.