Who Is Liable to Deduct and Pay TDS Under Income Tax Act?

Who Is Liable to Deduct and Pay TDS Under Income Tax Act?

The purpose of TDS is to make sure that there are no people who try to evade paying taxes. This is done by ensuring that a person or entity deducts the tax from the payment and deposits it with the government.

TDS is applicable to various types of payments such as commission or brokerage, fees for technical services, professional services, rent and royalty. If any of these payments are not deposited with the government on time, it attracts interest and penalties.

Depending on the type of payments, different TDS rates are applicable. In order to find out the rate at which TDS is applicable for a particular type of payment, you can visit the official website of the income tax department. This is where you can also check if your TDS is deposited or not by viewing your Form 26AS and AIS.

In case of salaried class individuals, employers are obligated to issue them with Form 16 which mentions the amount that has been deducted as TDS. You can also check how much TDS has been deducted by looking at your AIS and Form 26AS.

Individuals who own their own property and earn rental income from it can file their tax return by including this in their taxable income. However, if the amount of TDS that has been deducted from their rent is lower than their tax liability for the year, they can claim a refund. This is because the TDS that has been deducted by their landlord is not included in their total tax liability.

 

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