TDS is a direct taxation mechanism which was introduced to collect taxes from the source of income itself or at the time of income payout. Under this mechanism, if a person deductor is liable to make payment to any other person deductee will deduct tax at source and transfer the balance to the deductee.
TDS helps in keeping a check on tax evasion. Not only this, in this mechanism, taxpayer is not required to pay a lumpsum amount as annual tax at the end of the financial year.
They will directly deposit the amount of Rs. The Indian Tax System has around 20 to 25 sections [1] that govern different types of payments on which TDS is applicable. Here are a few common types of payments on which tax is to be deducted at source along with the relevant section and TDS rates applicable. See how the latest budget impacts your tax calculation. Updated as per latest budget on 1 February, No deductions will be allowed under the new tax regime.
There are rules concerning not just income tax return filing but also concerning TDS. If an individual or organization meets with these rules adequately, they will be able to avoid penalty, fees or interest. The main rules related to TDS are:. One of the first essential rules is that Tax Deducted at Source needs to be deducted at the time when the payment either gets due or when the actual amount is made, whichever is earlier.
In case of late or non-payment of TDS, an interest 1. The monthly due date for TDS payment is as below:. TDS returns need to be filed every quarter. In case of late or non-filing of the return, a fine or fees of Rs. However, this sum should not exceed the amount of tax to be paid.
Following are the due dates of filing TDS returns:. One of the most common types of payment made by individuals is salary to employees. As per the current laws governing income tax, there is no fixed rate of TDS deduction from salary income.
The employer then calculates the tax liability based on the 'Average rate of Income Tax. The average rate refers to the total tax liability divided by the total income of the employee.
To arrive at the total tax liability, the employer will consider any investment made by the employee before deducting tax on salary. Exemption: No tax to be deducted at source unless the estimated salary exceeds the basic exemption limit. A TDS return has to be filed quarterly. Reach out to us if you need any help with your TDS returns.
Try TDS for free. Upload your Form Was this article helpful? Have a query? ITR Resources. This link shall take you to a webpage outside www. For any query regarding the contents of the linked page. Please contact the webmaster of the concerned website in case of any concern. TDS on Rent of Property. What is TDS on Rent?
However, such bank branches will make e-payment without digitization of any challan. The bank will get the challan details from the online form filled on TIN website www. What is Form 26QC? What is the periodicity of filling Form 26QC? From where can I get the Acknowledgment Number? From where can I print the Form 26QC? What is Form 16C? From where will I get the Form 16C? Tenant may approach any of the authorized Bank Branch to facilitate in making e-payment. I am a Tenant and I have filed Form 26QC before TDS payment and I have selected the option e-payment at subsequent date then how the payment made thereafter within the permissible period would be matched in the 26QC?
How to make tax payment towards Fee in Form 26QC? What is Fee in Form 26QC and when is it applicable? What is the modified rate of TDS on Rent of property to be deducted? What is the procedure for furnishing TDS through the e-tax payment option immediately after providing the transaction details?
Step 4 You can now verify the details entered by you. Step 5 After confirmation an option will be provided for submitting to Bank. How do I know whether my bank provides this facility? What is the procedure after being directed to the net banking site of the bank?
What is the timing for making payment through internet? Whom should I contact if the counterfoil containing the CIN is not displayed on completion of the transaction and if I want duplicate counterfoil? What is the procedure for paying the TDS amount into the Bank subsequently, i. Step 5 With the printout of the Acknowledgment slip, you may visit any of the authorized Bank branches to make the payment of TDS subsequently.
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