What is TDS?
TDS is simply Tax Deducted at Source. As per the Income Tax Act – persons responsible for making payments are required to deduct tax at source at prescribed rates. Instead of receiving tax on your income from you at a later date, the govt wants the payers to deduct tax before hand and deposit it with the govt.
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Note: In case of payment not exceed of Rs 30,000 or aggregate payment during financial year does not exceeds of Rs 1,00,000 then no need to deduct the TDS.
Issue of TDS certificate
The Person who deducting TDS he also need to issue Form 16A & 16B issued on quarterly basis. The Details for TDS Deposited can be view by person whose TDS has been deducted by checking Form 26AS.
What is the procedure for refund of TDS?
There is no specific refund process or form to claim TDS refunds. You must file your income tax returns in the normal manner. The excess of TDS over what you are supposed to pay as tax in the year will be the refund amount due, and this needs to be shown in the returns filed.
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What is the penalty for late filing of TDS return?
- Late filing fee (if you do not file by the deadline)
Rs 200 per day (two hundred) until your return is filed
- Interest (if you do not deposit the TDS amount in time)
Non deduction of tax at source, either in whole or in part then 1% & After deduction of tax, non payment of tax either in whole or in part then 1.5%
- Penalty (if TDS is not filed within one year of the due date)
Assessing officer may direct a person who fails to file the statement of TDS within due date to pay penalty minimum of Rs.10,000 which may extended to Rs.1,00,000.
What is the rate of TDS for Contract Employee? Click here to get to know