TDS Return Filing

The Consept of TDS has introduced to collect collect tax from every source of income. According to this concept, a deductor  who has liability to make payment to specified nature of any Deductee shall deduct tax at a source and remite the same amount into the account of Central Government. From the person (Deductee) whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or cettificate of Deduction issued by the Deductor.

When should TDS be deducted and by whom?

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited. However, in case of rent payments made by individuals and HUF exceeding Rs 50,000 per month, are required to deduct TDS @ 5% even if the individual or HUF is not liable for a tax audit. Also, such Individuals and HUF liable to deduct TDS @ 5% need not apply for TAN. Your employer deducts TDS at theincome tax slabe rate applicable. Banks deduct TDS @10%. Or they may deduct @ 20% if they do not have your PAN information. For most payments rate of TDS are set in the income tax act and TDS is deducted by payer basis these specified rates. If you submit investment proofs (for claiming deductions) to your employer and your total taxable income is below the taxable limit – you do not have to pay any tax. And therefore no TDS should be deducted on your income. Similarly, you can submit Form 15G and Form 15H to the bank if your total income is below taxable limit so that they don’t deduct TDS on your interest income. In case you have not been able to submit proofs to your employer or if your employer or bank has already deducted TDS and your total income is below the taxable limit) – you can file a return and claim a refund of this TDS. The complete list of Specified Payments eligible for TDS deduction along with therate of TDS.

Due date of depositing the TDS to the Government

The Tax Deducted at source must be deposited to the government by 7th of the subsequent month. As TDS Deducted in the month of June must be paid to the Govt. by 7th July.