Tax Deduction at Source (TDS)

Tax deduction at source (TDS) in India is a means of collecting tax on income, dividends or asset sales, by requiring the payer (or legal intermediary) to deduct tax due before paying the balance to the payee (and the tax to the revenue authority). TAN or Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. Tax deducted at source (TDS) ensures that the Government’s collection of tax is proponed and the responsibility for paying tax is diversified. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government – quoting the TAN number.

TDS Return Form

There are different TDS Forms have been set depending on the income of the deductee or the type of deductee who pays the TDS. The different TDS forms are listed below as follows:

FormPeriodicityParticulars
Form 24QQuarterlyQuarterly statement for TDS from “Salaries”
Form 26QQuarterlyQuarterly statement of TDS in respect of all payments other than “Salaries”
Form 27QQuarterlyQuarterly statement of TDS from interest, dividend or any other sum payments to non-residents
Form 27EQQuarterlyQuarterly statement of collection of tax at source
  • TDS Form 24Q:- According to Section 192 of the Income Tax Act 1961, an employer deducts TDS while paying salary to an employee. An employer has to file salary TDS return in Form 24Q, which has to be submitted on a quarterly basis. Details of the salary paid to the employees and the TDS deducted from the payment has to be specified in Form 24Q. In other words, Form 24Q is the quarterly statement of the payment made to the employee and the TDS deducted from it by the deductor.
  • TDS Form 26Q:- When a taxpayer pays taxes, the payee deducts TDS on certain occasions. Form 26Q is used to file TDS details on payments made other than salary. The form mentions the total amount that is paid during the quarter and the TDS amount that has been deducted. Form 26Q has to be submitted on a quarterly basis.
  • Form 27Q:-Form 27Q is a TDS Return or Statement containing details of Tax Deducted at Source (TDS) deducted on payments other than salary made to Non-Resident Indian (NRI) and foreigners. Form 27Q is required to furnish on a quarterly basis on or before the due date. Form 27Q contains details of payments made and TDS deducted on payments made to NRI by the deductor.
  • Form 27EQ:-Form 27EQ contains all details pertaining to tax that is collected at source. According to Section 206C of the Income Tax Act 1961, this form must be filed every quarter. The form has to be submitted by both the corporate and government collectors and deductors.

Claiming TDS Refund Online

To file your TDS online, you have to first register yourself on the IT department’s website: https://incometaxindiaefiling.gov.in/

After registration, you can file your income tax return by downloading the relevant ITR form. Fill in the requisite details, upload the Form and click on submit. Upon filing the ITR, an acknowledgement is generated for the ITR submitted, which you must e-verify. You can do e-verification by using a digital signature, an Aadhaar-based OTP or your net banking account. However, if you haven’t been able to e-verify the ITR, then you can complete the verification by sending a signed physical copy of the same to the IT department.

FAQs 

QUS:- How can I use this facility to pay TDS?

You can use the facility if –

  • You have a bank account with Net-banking/Debit card of the selected Bank, and
  • Your bank provides the e- payment facility.

QUS:- If I have misplaced my counterfoil whom do I contact?

Your Bank provides facility for re-generation of electronic challan counterfoil kindly check the Bank website; if not then you should contact your bank and request them for duplicate challan counterfoil.

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