1. What is TDS (Tax Deducted at Source)?
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TDS is a system where tax is deducted at the source of income, such as salaries, rent, interest, commission, and payments to contractors or professionals. The deducted amount is deposited with the government on behalf of the recipient.
2. Who is responsible for deducting TDS?
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TDS is deducted by the payer or deductor, which could be an employer, bank, company, or any person making specified payments to the recipient.
3. What is the difference between TDS and TCS?
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- TDS (Tax Deducted at Source) is deducted when a payment is made (like salary, rent, etc.).
- TCS (Tax Collected at Source) is collected at the time of sale (like on the sale of goods like scrap, minerals, etc.).
4. What happens if PAN is not provided by the recipient?
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If the recipient does not provide a valid PAN (Permanent Account Number), the TDS is deducted at a higher rate (usually 20 percent) as per Section 206AA of the Income Tax Act.
5. What is the due date for depositing TDS?
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TDS must be deposited with the government by the 7th of the following month (except for March, where it is due on April 30).
6. How can I check if TDS is credited to my account?
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You can view the details of TDS credited to your account by accessing your Form 26AS through the Income Tax e-filing portal.