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Description: Know in depth about Tax deduction at source, TDS filing, key dates, compliances, consequence of non- compliances. TDS
stands for Tax deduction at source, the concept of TDS was introduced by Income tax department, which makes it
mandatory for specified class of people who are making specified expenses or payments like rent, salary, commissions
etc. to deduct certain amount (known as TDS) from amount to be paid. In simple terms, suppose Mr. A has to clear
an invoice for professional fees, of INR 40000 raised by Mr. B, Mr. A will deduct 10 percent over this amount
in advance before making the payment to Mr. B. This amount so deducted by Mr. A is to be directly deposited to
central government and is known as TDS i.e. TAX DEDUCTED AT SOURCE. TDS is generally deducted on all kinds of
invoices be it professional fees invoices raised by freelancers or payments to be made in terms of rent or salary
etc. TDS deducted is deposited with reference to TAN i.e Tax Deduction Account Number.
TDS is required to be deducted on payments to be made and TDS return is required to file on quarterly basis. Due dates
for TDS payment and returns are as follows :
Month | Quarter ending | Due date of TDS Payment | Due Date of TDS return |
---|---|---|---|
April | 30th June | 7th May | 31st July |
May | 30th June | 7th June | 31st July |
June | 30th June | 7th July | 31st July |
July | 30th September | 7th August | 31st October |
Aug | 30th September | 7th September | 31st October |
Sep | 30th September | 7th October | 31st October |
October | 31st December | 7th November | 31st January |
November | 31st December | 7th December | 31st January |
December | 31st December | 7th January | 31st January |
January | 31st March | 7th February | 31st May |
February | 31st March | 7th March | 31st May |
March | 31st March | 30th April | 31st May |
Tax deduction at source is mandatory whenever a prescribed threshold limit of prescribed expenses cross. This tax deduction
is applicable on service providers, salaried persons, interest earned on Fixed deposits etc. TDS deduction rates
are different for different sources and types of expenses.
Companies registered in India must file for TDS returns, Company360 provides monthly TDS return filing services for start-ups,
small medium enterprises and other body corporates. The fees for TDS Filing depends on number of TDS applicable
transactions