The first question that arises is what exactly is TDS? Well it is basically a quarterly statement which has to be submitted by the income tax department. It has to be filed necessarily if you are a deductor. A TDS return includes the PAN details and could be filed through TDS forms. There are various kinds of TDS which can be filed both by offline and online. In short , it is the statement of summary of all the transactions made during the quarter.
Section 192 of the income tax act deals with the computation of TDS on income. An employer filing income tax on the salary head shall deduct the average of the income tax on the basis of the existing rate of the financial year in respect to the income of the assesse
The necessary conditions that sum up to the applicability of section 192 IT act are:-
- When the payments are made to resident employees
- When the payments are made to non-residential employees
- When the payments are made to the employee
- When the nature of such payment is in salary for
- When the income under the salary head is above the exemption limit.
- That the relation between the deductor and deductee should be that of an employer-employee.
Such a deduction is not made when there is any sort of obligation or something , instead it shall be deducted when the payment in the form of salary is being paid by the employer to the employee. A fixed amount is deducted which is in prevalence in the particular financial year at the average rate of income tax.
A surcharge or cess is applicable to the HUF(Hindu undivided family) or an individual or basically who’s income exceeds 1 crore are applicable to the cess charge of 12%p.a . therefore a salary is computed after considering such charges.
A person who are below the age of 60 and earns above the exemption limit of 2,50,000 shall be subject to tax .
A TDS can be filed either by online or by paying challans at banks. The last date of filing the TDS is the last quarter of every month and such a payment shall be paid by furnishing TAN no. without which payments cannot be made .
while filing an e-challan the first thing they would ask you to fill out is a valid TAN no. if it is valid then only you would be able to fill other necessary details.
Procedure for filing a TDS are stated below:-
- Visit the website and there select Challan No. – ITNS 281 for TDS payment
- Then enter your TAN no. and there would be an online check of whether the Tan No. is valid or not.
- After it is verified , you’ll have to fill other necessary details.
- After submission of the data , a confirmation screen would be displayed. After confirmation it would direct you to the e-banking section where they will have to fill the usernae and password as provided by the banker. After making the payment a CIS no. , bank details etc. would be displayed after successful payment
- After the payment , the deductor shall issue you with a TDS certificate through form 16 or 16 A.
If there is a delay in payment of TDS , then the assesse shall pay @1.5% for every month or during the part of the month when the amount is not deposited