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What is TDS?

Under Tax Deducted at Source (TDS) system, tax is deducted at the origin of the income i.e tax is deducted by the payer at the time of making payment and the same is deposited to the Government by the payer on behalf of the payee.

TDS provisions under Income Tax are applicable to various payments such as salary, interest, commission, professional fees, royalty, contract payments, etc. In respect of payments to which the TDS provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the Government.

Compliances for person deducting TDS

  • Obtain Tax Deduction Account Number and mention the same in all the documents pertaining to TDS.
  • Tax at source to be deducted at the applicable rate.
  • Deposit of TDS to the credit of the Government on or before specified due date
  • Filing of periodic TDS statements (TDS returns) on or before specified due date.
  • Issuance of TDS certificate to the payee in respect of tax deducted by him

What is the due date for deposit of TDS?

The Tax Deducted at Source must be deposited to the government by the 7th of the subsequent month. For example, TDS deducted in the month of September must be paid to the government by 7th October.

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How to login into the TRACES?

TRACES (TDS Reconciliation Analysis and Correction Enabling System) is an integrated platform for providing services to TDS deductors. On the Login page, enter valid login credentials...

TDS provisions on rent under section 194I

The threshold limit for deduction of TDS on rent is Rs 2,40,000. The tenant is required to deduct TDS at the prescribed rate under section 194I....

Relaxation in provisions of TDS u/s 194A in view of section 10(26) of Income Tax

The Govt notified that no deduction of tax shall be made on the following payment under section 194A of Income Tax namely payment in the nature of interest...

How to pay TDS online?

Step 1 Visit the NSDL website (Income Tax department site) to pay TDS online. On this page, select ‘CHALLAN NO./ITNS 281’ under TDS/TCS section....