Tax Deducted At Source (tds) Filing Service Details
Tax Deducted at Source (TDS) is a means of collecting income tax in India, wherein a person (deductor) who is liable to make a specified payment to another person (deductee) deducts a certain percentage of tax before making the payment. This mechanism ensures that tax is collected at the source of income itself. Here in simpler terms,
Tax Deducted at Source (TDS) means taking a portion of income tax right when you get paid. For example, if someone owes you money, they will deduct a part of it as tax before giving you the rest. This way, the tax is collected as soon as you earn, making sure you pay your taxes on time.
Transactions subject to TDS
Like Salary, Rent, Professional fees, Contract payments, Winning, Lottery, Dividends, etc.
Filing of TDS
TDS payment will be made annually on 7th of next month & Return of the TDS will filed every quarterly on 15th of end of every quarter.
Various Forms under TDS
Form 26Q is used for reporting Tax Deducted at Source (TDS) on payments other than salaries
Form 24Q is used for reporting Tax Deducted at Source (TDS) on payments of salaries
Form 27Q is used for reporting Tax Deducted at Source (TDS) on payments made to non-resident Indians (NRIs) and foreign entities.
Penalty of Non-Compliance
Interest will be levied for non-filing or payment of TDS on time i.e., either 1% or 1.5% as per the circumstances.
Penalty will also be imposed if fail to pay or file the return of TDS equivalent to double of TDS amount.
Late filing fees of 200/ Day will be levied for non-filing of TDS return.
Expenses also disallow as per section 40 of Income Tax Act, 1961.
Why Choose HireYourCA?
Why Choose HireYourCA?
There are several reasons why HireYourCA stands out as your go-to partner for business registrations and compliance:
Experienced and Qualified Team: Our CAs possess extensive knowledge and expertise.
Seamless Service: We handle the entire process, keeping you informed at every step.
Cost-Effective Solutions: Competitive pricing ensures value for your money.
Client-Centric Approach: We prioritize your needs and offer personalized guidance.
Technology-Driven Platform: Our user-friendly online platform enables easy tracking and access to documents.
Transparency and Trust: We maintain complete transparency and adhere to the highest ethical standards.
Eligibility
Eligibility
Individual and other Entities like company, and others on any payment exceed limit prescribed.
Employer will deduct on salary.
Business transactions like deduct TDS on rent, professional fees, contract payments, interest etc.
And if crossed Specified limits prescribed under Income Tax Act, 1961.
Documents Required for TAX DEDUCTED AT SOURCE (TDS) Filing
Documents Required for TDS payment and Return Filing
TAN Login of Deductor
TAN and PAN card of Deductor
Pan card of Deductee
Detail of transaction on which TDS to be deducted
Benefits Of Getting Tax Deducted At Source (tds) Filing
Regular collection of taxes
Reduced tax evasion
Ease for taxpayers
Reduce the burden of tax at the time of filing of ITR
Convenient for employee
FAQs
TDS stands for Tax Deducted at Source. It is a system where tax is deducted at the point of generation of income by the payer and remitted to the government on behalf of the payee
TDS rates vary based on the nature of the payment and the recipient's status (resident or non-resident)
TDS is computed based on the applicable rate and the amount of payment. The payer deducts the tax and remits it to the government.
The payee (deductee) can claim TDS credit while filing their Income Tax Return (ITR) by providing the TDS certificate (Form 16, 16A, etc.).
Failure to deduct TDS or deposit it on time can result in penalties and interest charges.
