Tax Deducted at Source (TDS) Services

Tax Deducted at Source (TDS) is a tax collected by either a company or an individual when making payments exceeding the income tax threshold. The entity making the payment is referred to as the 'Deductor,' while the recipient of such payment with TDS deduction is known as the 'Deductee.' The deductor must deposit the TDS amount into the IT Department’s Account and file a TDS Return quarterly, except in certain cases like payments for immovable property, where a one-time return is filed. Failure to transfer TDS on time and file it with the IT Department is a punishable legal offense and should be avoided.

Note: TDS certificates such as Form 16/16A/16B should be issued to the deductee after TDS deduction.

These payments can be subject to TDS deduction if they exceed the income threshold limit:

• Salary
• Award Value for winning lottery, gambling, etc.
• Bank Interest
• Interest on securities
• Insurance payment
• Deemed dividend
• Commission
• Payment on immovable property
• Payment of rent

These documents are required during TDS Return Filing:

• Valid TAN (Tax Deduction and Collection Account Number)
• Valid PAN linked to Aadhaar
• Valid TDS Statements, TDS Certificates, TDS Challan, etc.
• Valid proofs of Interest income/Property purchase/Capital gains, etc.
• Bank Account Details

In some cases, as mentioned below, specific TDS rules/exemptions are allowed:

• An individual from HUF/Individual who does not need to maintain Books of Accounts of income is not liable to deposit TDS for his/her payment.
• In case, excess TDS is deducted, the taxpayer can claim a refund by submitting correct proofs.