What is TDS? Full form and rule | TDS Rule (Rates in PDF)

Typically TDS is seen by adding salaries. Because people who get decent wages, they have a TDS deduction. But do you know that TDS  cut without fees? And do you see the deduction of TDS reduced too? And more, if you want you to get the cut back TDS.

What is TDS and What are the rules of TDS? On what basis it cuts and how can TDS deduct the deduction or can get back all these things we will tell in this post today.

 

What is TDS: Meaning And Full Form

 

TDS’ full form is ‘Tax Deducted at Source.’ Which means ‘Tax deduction at source’ Here the source ‘sources’ means-source of earnings. The origins of income under the Income Tax Act considered as five types-

1. Income as salary | Paycheck
2. Income from business/profession | Income from your business or job
3. Income from house property | Income from rent to a farm as a ‘
4. Income as capital gains | If any property sold as its profit,
5. Income From other sources | Income form of interest, commission, dividend, etc.

 

What is TDS? Full form and rule | TDS Rule (Rates in PDF)

 

 

The TDS system is that these salaried / payment-giving institutions/individuals will deduct your tax payment is made to you. You pay the remaining amount form of a salary or fee.

 

The tax deduction was made only on the source of your earnings has been named Tax Deducted at Source in Taxation Language, which means ‘Tax deduction at source.’ The tone of the many ways of tax payment. Apart from this, Advance Tax and self-assessment tax payment methods.

 

 

Example of TDS Deduction

 

Now we understand TDS deduction by a small example in which there is a rule of 10% reduction.

Suresh is a businessman, and Rajesh is a lawyer. Suresh took Rajesh’s services in connection with any work for his firm. Now, on behalf of Suresh, Rajesh has to pay 40,000 rupees. Rajesh will have to do it by cutting 10 percent of the 40,000 rupees, i.e. 4000 rupees already before payment, and the remaining Rs 36,000 will give to Rajesh. The 4,000 which they had bitten would be the same TDS. Suresh will deposit 4000 rupees in the account of the Income Tax Department in the name of Rajesh.

 

 

Advantages of TDS

 

TDS works on the principle of ‘pay as and when you earn’ i.e. ‘earn and pay to go.’ Government and taxpayers both live in comfort with this system.

Sharing of responsibility for a tax deduction. Responsibility sharing
Giving the responsibility of cutting and depositing the tax to the employer reduces the burden on the government. Income Tax Department can collect tax from many people through the same employer. That too little extra effort.

 

 

No tax scam: Prevents tax evasion.

 

Tax deduction before getting paid or before getting paid, the taxpayer does not have the scope to tax in his earnings, which means tax evasion. Addition TDS, people who are tax administration, are often successful in doing this.

 

 

Increase in the scope of the tax. Widens the tax collection base

A large number of earning people economy come under the purview of tax. From Salaried to other professions, the government earns revenue from all those who make taxable income.

 

 

A sure source of income

 

The government gets a surefire amount till due date in the first week of every month). Allows him to continue his expenses and arrangements. Whereas the money was coming through advance tax and self-assessment tax is not so regular.

 

 

Accessible to taxpayer Easier for a deductee

 

Who have a TDS, do not have to go through the hassle of depositing income tax every three months as Advance Tax. An employer is responsible for all the formalities. Just have to look at return filing, that too once a year.

 

Difference between Advance Tax and TDS

 

TDS and Advance Tax, there are two different ways to pay tax in government accounts. But there is a difference between the submission and returns of both the system. Let’s understand this difference.

 

  • Earning Advanced Tax himself deposits tax with the government contrary TDS is stored employer or firm the taxpayer does not have to worry.
  • Advance Tax has deposited once every three months,  TDS is Monthly, Quarterly, or Annually collected in different cases. If the paying provider is a company or institution, then he has to deduct TDS every month. If a person is paying, he has to deposit once every three months.
  • You have to submit a return of the tax yourself which is deposited once a year. The taxpayer who has a TDS has to enter his back four times a year. After every quarter, till the last date of the next month.

 

 

Where does TDS cut? When is TDS Applicable?

 

Salaries: If you are a Salaried employee of a company or institute and your year’s salary taxation income (currently 2.5 lakh rupees annually), your Employer bites.
Interest Payments: If you are getting a large amount (currently over 40,000 rupees) on your deposits, the bank bites the TDS.
Commission obligations: To get any work done from an institution or Business or to get a more Significant commission about any deal (real estate and so forth

 

Rent payments: If you are getting rent of more than Rs. 20,000 per month in house rent, then the tenant is required to deduct TDS.
Consultation fees: You are getting consultation fees from any firm as a lawyer, chartered accountant, financial planner, etc.
Professional fees: If you have hired a firm based on your professional expertise.

 

 

TDS Rules

 

Some rules have been framed by the Income Tax Department for cutting and depositing TDS. Those who can not do the proper execution may have to pay a fine, interest, or Late Fee.

 

 

Regarding TDS deduction

 

TDS deducted from the date of payment or actual payment, whichever is earlier if there is a delay, the interest charged at a rate of 1% per month.

 

TDS deposit.

 

The TDS borrower must deposit the collected amount to the Government by the 7th of the following month. If you do not do this, you will have to pay interest of 1.5% / month separately on the full amount.

 

What is form 16

 

Regarding TDS Returns Filing

 

Every month the TDS is deducted, it is mandatory to return the return of every quarter to the last date of the next month. That is 31 July, 31 October, 31 January, and 31 May of the financial year. If you fail to do so, you will have to pay a fee of 200 rupees per day (according to Section 234E) although the amount of Late fee cannot exceed the total tax.

 

TDS Certificate

 

The TDS Cutter from your earnings gives you certificate regard,  the responsibility of the law that the number of TDS that has been deducted by the employee and the amount of TDS deposited to the government will give you a certificate. With the help of this certificate, you can claim Paid Tax at the time of filing returns or on departmental investigations.

The deductor primarily issues two types of TDS certificates.

 

 

 

What is Form 16

 

 Fill Form 16

 

If you find Salary, then your company, which deducts issues a TDS certificate in Form 16. In this, he gives full detail of the salary offered to you and tax deducted from him, i.e.

 

 

Fill Form 16A

Apart from Salary, if TAX deducted on any other income, then TDS Certificate is available as Form 16A. Such as interest from the bank, professional fees, from any firm.In which you have the full payment of the payment made on his behalf and tax deduction.

 

 

 

TDS Rates

TDS  RATE CHART Financial Year: 2018-19 / Assessment Year: 2019-20 PDF File –Download

 

 

The speed of TDS fluctuates following the earnings as the company snacks of his workers according to their tax slab.

At the same time, TDS bites at a flat rate of 10% on the bank interest. Similarly, on the benefit of the mutual debt fund, the resident of India does not have to deduct TDS, while non-resident Indian has to deduct. At present, how much  Rate applies to the earnings, can see in the table below.

 

What is TDS
Credit Income Tax Website

 

TDS  RATE CHART Financial Year: 2018-19 / Assessment Year: 2019-20 PDF File –Download

 

How To Save TDS?

 

In Case Of Salary

 

If you believe that your Total Taxable Income is less  Basic Exemption limit during the financial year,  can ask your Employer not to deduct TDS. But in favor of, you have to present the appropriate documents.

 

 

That is, TDS not deducted. Keep in mind the following two facts for relaxation.

 

  •  All the allowances you receive with Salary and some allowances are partly exempt from tax. Such as house rent allowance (HRA) LTA, medical allowance, etc. To know about these options for tax exemption, read: 45 ways to save tax
  • Under section 80C, 80CCC, 80CCD, 80CCG, 80D, 80DD, 80DDB, 80E, 80EE etc. of Income Tax Act, you also get tax rebates on many types of investments. Based on these, they claimed to reduce the tax. Read for detailed information: 80C tax rebate.

 

In the case of other payments. In case of other Payments

 

Get any payment other than salaries, which deducted on TDS; you get tax exemption on it. Firstly, make your PAN available to him.  is no PAN, cut TDS at double rate. Total income is less than the taxable limit then you can apply for tax exemption by submitting Form 15G or Form 15H.

 

  • 15G / 15H: Both form 15G and Form 15H are required deposited with the payment provider for not cutting the TDS. Form 15G is for the general public; Form 15H is for senior citizens only.
  • These forms deposited with TDS-cutting bank, post office or business, etc. of interest on bank savings, investment on National Savings Certificate (NSS), Dividend, PF withdrawal one, etc

 

 

How to Get TDS Refund

Your earnings is a less Economical Limit; also for some reason, your employer has Not yet Shown Your tax exemption Together with your Company or Creditor Receives deducted TAX, You Have to Keep Income Tax Return for a refund. When you supply information about your gross profits, investment, and taxation obligations in the Income Tax Return, an extra paid tax deduction to your account, You Might notice a refund only when filing an income tax return. A tax refund can be found within three weeks of the filing of their operation.

 

 

PAN and TAN needed

 

You have your PAN number to deposit the TAX. On this pan, your tax account is created, and the amount deposited is recorded in front of this — similarly, government TAN number of cutting. Anyone deposits TDS to a government, and he gets lodged his TAN number. Same time, it goes through Form 26  the person’s PAN number,  income has deducted from TDS.

 

View records in Form 26as

 

You can view Form 26AS to see or check how much TDS has been cut off on your behalf. In this, the records of all types of tax given on your behalf recorded. Form26AS is a type of statement a series mention of charge deducted, and a deposited amount is presented in front of your name or PAN.

You can get help from the E-Filling Website of the Income Tax Department to see if your TDS cut and whether your name has accumulated. How can you check it on the website, let’s know?

 

 

1: Go to web address incometaxindiaefiling.gov.in and click on “Register Yourself” option.
2: Please fill the requested status based on the details of your PAN and generate the password.
3: Now you have your user id. The user ID is your PAN number. And you can log in to your account with the help of password. You will get the option of “View Tax Credit Statement (26 AS)” on your account page as you log in. Click on it.
4: After clicking on “View Tax Credit Statement (26 AS)”  take you another website called TRACES (Full Form: TDS  Reconciliation Analysis and Correction Enabling System). You will see all your tax-related details here. Like how much has deducted, or advance tax has been collected, how much has been deposited, etc.

 

I hope you would have liked this post. You can comment to ask related questions. Please share this post on social media.

 

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