Overview
TDS stands for Tax Deducted at Source.The main aim of TDS is to collect tax from every source of Income. As per the provisions of the IncomeTax Act 1961, a tax-deductor shall furnish a periodical TDS statement (Quarterly) containing the particulars of deduction of tax formed during the quarter by the determined due date. The Department of Income-tax decides the rate at which the TDS will be deducted. It is the responsibility of the Deductor to deduct the TDS before making the payment and deposit it to the Government.
The tax amount is deducted either at the time when the money is credited in the account of the payee or when the payment takes place, whichever happens earlier.
There are different categories under which TDS can be filed which are:
- Salary of an individual
- Insurance Commission or the Income from any other sources like lottery puzzles etc.
- Payment from the National saving Scheme.
- The categories under which there is the eligibility to file the TDS Return on electronic media:
- Company
- Individuals whose accounts are audited under u/s 44AB
- Individuals were holding office under the Government.