TDS Return

Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, etc.

TDS or Tax Deducted at Source is an advanced tax deduction system specially designed and presented by the Income Tax Department of India. any individual or registered firm making the payment must deduct a certain percentage of the amount as tax at the source, provided that amount is more than the pre-fixed threshold limits. An employer or firm who possess valid TAN (Tax Collection and Deduction Account Number) can file a TDS return. TDS return is a quarterly statement to be given to the I-T department. It is compulsory for deductors to submit a TDS return on time. The details required to file TDS returns are:

• PAN of the deductor and the deductee
• Amount of tax paid to the government
• TDS challan information