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TDS (Tax Deducted at Source) is a mechanism under the Indian Income Tax Act, 1961, where tax is deducted at the source of income itself. TDS is applicable to various types of payments such as salary, interest, rent, professional fees, commission, etc. Here are some of the key provisions of TDS under the Income Tax Act:
1. Threshold limit: TDS is applicable only if the payment exceeds a certain threshold limit. For example, TDS on salary is applicable only if the salary exceeds Rs. 2.5 lakh per annum.
2. TDS rates: The rates at which TDS is to be deducted vary depending on the nature of payment. For example, TDS on salary is deducted at the rates applicable to the individual based on his/her income tax slab, while TDS on rent of Property is deducted at the rate of 10%. We have discussed in detail about the TDS Rates on our Articles page, you can check it by cliciking on TDS Rate Chart
3. TAN: Any person who is required to deduct TDS is required to obtain a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.
4. TDS return: The person deducting TDS is required to file a TDS return with the Income Tax Department. The return contains details of TDS deducted, paid and other related information.
5. Due date for depositing TDS:
  - For all payments other than government deductors – 7th of the following month.
  - For government deductors – 30th of the following month.
6. Late deposit of TDS: If TDS is not deposited within the due date, the deductor is liable to pay interest and penalty as prescribed under the act and rules made thereunder.
7. TDS certificate: The person from whose income TDS is deducted is entitled to receive a TDS certificate from the deductor. The certificate contains details of TDS deducted and deposited.
8. TDS on non-residents: TDS on payments made to non-residents is applicable at a higher rate than the rate applicable to residents.
9. Due Date of Filing the TDS Return:
  - For TDS deducted in the last quarter (Jan to March) – 31st May of the next financial year.
  - For TDS deducted in the first three quarters (April to December) – 31st July of the next financial year.

We help the business in Depositing and filing the TDS on time and providing end to end compliances of TDS so that the stakeholders can focus on their business without worry.

Tax Deducted at Source (TDS)