The concept of TDS was introduced to collect taxes at the sources of income. According to this idea, a person (deductor) who must pay another person (deductee) must withhold tax at the source and remit it into the central government’s account. Based on Form 26AS or a TDS certificate issued by the deductor, the deductee from whose income tax source deductions have been made is entitled to receive credit for the amount so deducted.
Online TDS return is a statement given to the IT department on every quarter. Every deductor needs to deposit income tax and file for TDS return on time.
What is TDS?
Tax deducted at source or TDS is the tax that is collected by the Government of India at the time when a transaction takes place. Here, in this case, the tax is to be deducted at the time the money is credited to the payee’s account or at the time of payment whichever happens earlier.
In this case, of salary payment or the life insurance policy, the tax is deducted at the time when the payment is done. The deductor is required to deposit this amount with the Income Tax Department. Through TDS, a portion of the tax is paid directly to the Income Tax Department. The Tax is deducted usually over a range of 10%
What is TDS return filing?
Apart from depositing the tax, the deductor also has to do TDS return filing. TDS return filing is a quarterly statement that is to be given to the Income Tax department. It is necessary to submit the TDS returns on time. TDS return filing can be done completely online. Once the TDS returns are submitted, the details will come up on Form 26 AS. While filing the TDS returns, the various details to be mentioned are
- PAN of the deductor and the deductee.
- Amount of tax that is paid to the government
- TDS challan information
- Others, if any.