Tax Deducted at Source (TDS)

Tax Deducted at Source, as the name suggests, is the tax deducted at the time the income is received by or credited to the “person” so that collection of tax is preponed and there is regular flow of taxes to the government. TDS is deducted on various types of income such as salary, interest on bank deposits and bonds, winnings from lotteries and horse races, payment to contractors and sub-contractors, insurance commission, commission or brokerage, rent, fees for professional and technical services, etc.

TDS has to be deposited to the credit of the Central Government and TDS Returns should be filed within due dates prescribed by the Income Tax Act, 1961. TDS Certificates have to be issued by the deductor giving details of tax deducted so that the same is adjusted against income tax payable for the year by the deductee. A mandatory 10 digit Tax Deduction Number (TAN) is also required to be obtained by the deductor for this purpose.

Non Compliance with any of the provisions of the Income Tax Act in respect of deduction and deposit of TDS, filing returns, obtaining TAN etc leads to severe penalties. Hence, it is advisable to take expert help in order to avoid any kind of liability. VenturEasy provides a whole range of services which can completely take care of your Income Tax issues including TDS.