What is TDS?
TDS is known as Tax Deducted at Source. According to the Income Tax Act- Persons who are responsible for making payments are required to deduct tax at source at prescribed rates. The Government and payee are the two main parties generally involved for TDS collection. You can generate your TDS return within a day by registering here TDS Filing. TDS is indirect tax collection by Indian authorities as per Income tax Act, 1961 TDS is controlled by the Central Board of Direct taxes (CBDT) under Indian Revue Services. Therefore, TDS deductions are connected to PAN numbers for both the Deductor and the Deductee.
What is TAN number?
TAN is known as Tax Deduction and Collection Account Number. Furthermore, TAN is basically a 10 digit alphanumeric number which is issued to an individual who is required to deduct tax on payments made by them under the Income Tax Act, 1961. You can fill your TAN application through Legalraasta.com.
Click here for TAN application. Rather than receiving tax on income at a later date, the Government wants the payers to deduct tax before hand and submit with the Government. The following are applicable for TDS deduction:
- Interest payment by bank
- Payment of commission
- Payments made to consultants or lawyers.
Benefits of TDS
- TDS is an easy method of tax collection.
- TDS provides an avenue in which an individual can make tax payments each month, such that an equal sum is deducted all through the year.
- TDS helps to prevent tax evasion.
- TDS expands the tax collection base.
- There is a constant source of revenue for the government.
Types and Rates of TDS
1. What are the different types of Income?
- Income from salary
- Income from House property
- Income from business or profession
- Income from capital gain
- Income from other sources
2. What is the full form of TDS?
- 3. Tax Deduction at Source
4. What is TDS?
- TDS is known as Tax Deducted at Source. According to the Income Tax Act- Persons who are responsible for making payments are required to deduct tax at source at prescribed rates.
5.Is there any penalty for late filing of TDS Return?