TAX DEDUCTED AT SOURCE (TDS)

Updated on July 19, 2022

Introduction​

With the introduction of TDS, the goal was to collect taxes directly from the source of income.

A person (the deductor) who is obligated to make a payment to another person (the deductee) of a particular sort is required to deduct tax at the source and deposit it to the Central Government.

On the basis of Form 26AS or TDS certificate given by the deductor, the deductee from whose income tax has been deducted at source is entitled to claim credit for the amount thus deducted.

Rates for deduct of tax at source

According to the relevant provisions of the Act or First Schedule of Finance Act, taxes shall be deducted as indicated.

Withholding tax rates for non-residents under the Double Taxation Avoidance Agreements must also be taken into account when making payments to non-residents.

The TDS Fees
Rates of Withholding Tax
the DTAA and the Income-tax Act

How to pay Tax Deducted/Collected at source?

By the following methods, taxes deducted or collected at the source shall be deposited to the Central Government’s account.
In order to comply with section 44AB of the Income Tax Act, 1961, E-Payment is required for all corporate assesses and all assesses (other than companies).
the Challan 281, which must be presented at an approved bank branch,

Note:-

There is no need for an income-tax challan if the tax is collected or deducted by a government office.

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With regard to such a situation, a statement in Form No. 24G must be sent to the National Stock Depository Limited (NSDL) by any person who is responsible for putting such a sum into the Central Government’s bank account by the deductor in accordance with the required time limit.

Download the TDS/TCS Challan from e-Pay

Credit for tax payments