What is TDS?

Tax Deducted at Source or TDS is a source of collecting tax by Government of India at the time when a transaction takes place. Here, the tax is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier.

All about TDS Returns

Besides depositing the tax, the deductor should also file a TDS return, in respect to National Saving Scheme.

TDS return is a quarterly statement to be given to the I-T department. It is compulsory for deductor to submit a TDS return on time. The details required to file TDS returns are:

• PAN of the deductor and the deducted
• Amount of tax paid to the government
• TDS challan information
• Others, if any

TDS return can be filed by employers or organizations that avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments:

• Payment of Salary
• Income by way of “Income on Securities”
• Income by way of winning lottery, puzzles and others
• Income from winning horse races
• Insurance Commission
• Others

An assesse is liable to file e-TDS return if TDS is deducted from his/her income. It is obligatory to file TDS return within the due date mentioned above. In case an assessee does not file the return within the prescribed time, he will be liable to pay a penalty.

Following are the assessees liable to file quarterly TDS return electronically:

• People whose accounts are audited u/s 44AB
• People holding an office under the Government