Tax deducted at source (TDS), as the very name implies aims at collection of revenue at the very source of income. It is essentially an indirect method of collecting tax which combines the concepts of “pay as you earn” and “collect as it is being earned.” Its significance to the government lies in the fact that it prepones the collection of tax, ensures a regular source of revenue, provides for a greater reach and wider base for tax. At the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and convenient mode of payment. The concept of TDS requires that the person on whom responsibility has been cast, is to deduct tax at the appropriate rates, from payments of specific nature which are being made to a specified recipient. The deducted sum is required to be deposited to the credit of the Central Government. The recipient from whose income tax has been deducted at source, gets the credit of the amount deducted in his personal assessment on the basis of the certificate issued by the detector.
Documents Required
- PAN and address of deductor.
- PAN and address of deductees .
- PAN and address of organization.
- Copy of tax challans paid.
- Details of TDS deducted under appropriate heads.
- Contact details of deductor.
Tax Deposit & Return Filing Dates
| MONTH OF DEDUCTION | TDS PAYMENT DATE | QUARTER ENDING | TDS RETURN FILING DATE | LATE FINE AFTER RETURN DATE |
|---|---|---|---|---|
| April | 7th May | 30th June | 31st July | |
| May | 7th June | ₹200 Per Day, Maximum ₹20,000 | ||
| June | 7th July | |||
| July | 7th August | 30th September | 31st October | |
| August | 7th September | ₹200 Per Day, Maximum ₹20,000 | ||
| September | 7th October | |||
| October | 7th November | 31st December | 31st January | |
| November | 7th December | ₹200 Per Day, Maximum ₹20,000 | ||
| December | 7th January | |||
| January | 7th February | 31st March | 31st May | |
| February | 7th March | ₹200 Per Day, Maximum ₹20,000 | ||
| March | 7th April |