TDS or Tax Deducted at Source is a type of tax or we can say that it is a part of income tax which is collected from the very source of income. Under this, a person who is liable to make payment of specified nature to any other person shall deduct tax at source and remit the same into the account of the Central Government. Here the person who deduct the tax is known as “deductor” and the person from whose income the tax is deducted is known as “deductee”.
In other words, we can say that it a specific amount which is deducted when a certain payment like salary, commission, rent, interest, professional fees, etc. is made.
The basic motto of the government behind the introduction of TDS is that to collect the tax at the time income is earned not at the end of the Year. The burden of deduction and submission of the tax has been put on the person who has to make payment. In this, the recipient of the income receives the net amount after such deduction. The recipient will add the gross amount to his income and the amount of TDS is adjusted against his final tax liability. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26 AS or TDS certificate issued by the deductor.
For most payments rates of TDS are set in the income tax act and TDS is deducted by the payer basis of these specified rates.
We, JKG Corporate Consultants LLP, assist you in the following services:
- TAN Registration
- Assistance in computation of TDS
- Preparation and filing of TDS Return
- Follow up with the department regarding any demand or any other matter
- Advisory Services
- TDS Review
- All other compliances and related services
