TAX DEDUCTION AT SOURCE RETURNS (TDS RETURNS)

TAX DEDUCTION AT SOURCE RETURNS (TDS RETURNS)

• Tax deducted at source (TDS) is the tax amount deducted from payments of various kind like but not limited to - salary payments, contract payments, commission payments, rent payments etc. Further these payment have to be deposited to Tax department on monthly basis
• These payments are deducted to prevent Tax evasion by deductee and deductee can take benefit of TDS deducted while filing his/ her income tax return.
• Deductor need to obtain a unique identification number ,known as TAN number, from Tax department, only then he will be able to deduct tax amount
• There are various rates of TDS prescribed by Income tax department according to the type of payment and nature of deductee.
• TDS return have to be file after regular payment of TDS. TDS return is filed by deductor.
• TDS amount have to be deposited on upto 7th of following month except for March as march TDS can be paid by 30th April. TDS returns are required to file on quarterly basis.
• There are various forms of TDS returns as per the nature of payment.
• For Example :- Return for salary Tds have to be filed in Form 24 Q , non salary returns are filed in 26Q.
• After filing TDS return if there is any error notice in filed return, one can easily correct that by filing Correction Statement.