Question: Why Is TDS Required?

How long does it take to get TDS certificate?

What is the TDS Refund period.

Usually, if you have filed your ITR on time, it takes approximately 3 to 6 months for the refund to be credited in your bank account.

The time it takes for the refund to be credited also depends on the completion of the e-verification..

Is it mandatory to issue TDS certificate?

Under Section 203 of the Income Tax Act, 1961 it is mandatory for all Deductors to deduct TDS. After deducting the TDS, the Deductor has to issue relevant certificates. This certificate is called as TDS Certificate. However, there is no obligation to issue TDS certificate in certain cases.

What should I do if TDS certificate is not issued?

The Only remedy in case your employer refuse to issue you tds certificate or he is not issuing TDS certificate is that you can complain to the concerned Assessing Officer in writing, who will take appropriate action or initiate penalty proceedings against the employer.

How is TDS calculated?

Here’s how an individual can calculate TDS on income: Add basic income, allowances and perquisites to calculate gross monthly income. Compute the available exemptions under Section 10 of the Income Tax Act (ITA) … Multiply the number obtained from the above calculation by 12, as TDS is calculated on yearly income.

Is TDS direct tax?

Tax Deducted at Source or TDS is a way of collecting indirect tax by The Government of India, as per the Income Tax Act, 1961. TDS that comes under IRS (Indian Revenue Service) is directly managed by CBDT (The Central Board of Direct taxes). TDS is collected in order to keep the revenue source stable for the govt.

What is the time limit for issue of TDS certificate?

15 daysAs per the provisions of the Income Tax Act, TDS certificate must be issued by employers to an employee within 15 days of filing their fourth-quarter TDS returns. Hence, Form 16 must be issued within 15 days of filing the fourth quarter TDS returns.

How can I generate TDS certificate?

Step – 1 Send Request For Tds CertificateEnter User ID and Password then login.Click Download Button.Form 16A.Fill all details and click go button.Click Submit Button.Fill Details and click submit button.Fill Details and click Proceed With Transaction.

What TDS means?

Tax Deducted at SourceTDS full form is Tax Deducted at Source. Under this mechanism, if a person (deductor) is liable to make payment to any other person (deductee) will deduct tax at source and transfer the balance to the deductee. The TDS amount deducted will be remitted to the Central Government.

How can I be exempt from TDS?

In case they want to avoid TDS they have to apply to the concerned assessing officer and obtain a certificate under section 197 of the Income Tax Act. Let us examine the remedy available to the deductor if Interest has been paid without deduction of tax at source.

Who is eligible for TDS?

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.

What is TDS limit?

w.e.f 1st April 2019, TDS on the interest income from post offices and bank deposits have increased up to Rs. 40,000 from the present limit of Rs. 10,000. Section 194C: Payment to contractor/sub-contractors.

Can I get TDS refund?

You can claim the credit in respect of taxes deducted at source and claim refund in the return of income. Please ensure that the TDS is reflected in your Form 26AS. Once the return of income is processed, you will be entitled to receive the refund of TDS.

What is TDS example?

Tax Deducted at Source (TDS) is a system introduced by Income Tax Department, where the person responsible for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment.

What is the TDS water?

Total dissolved solids (TDS) comprise inorganic salts (principally calcium, magnesium, potassium, sodium, bicarbonates, chlorides, and sulfates) and some small amounts of organic matter that are dissolved in water.

What is the TDS percentage?

TDS Deduction RateTaxable IncomeTax RateUp to Rs. 2,50,000NilRs. 2,50,000 to Rs. 5,00,0005%Rs. 5,00,000 to Rs. 10,00,00020%Above Rs. 10,00,00030%

What is the rule of TDS deduction?

TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5% to 30% which is equivalent to the applicable income tax slabs.

How many types of TDS is there?

two typesTDS Certificates are of two types: Form 16 and Form 16A. Under Section 203 of the Income Tax Act, 1961, a certificate must be provided to the deductee showing the amount that has been subtracted as tax. The deductor is liable to provide this form to the deductee.

What is TDS rate chart?

TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)SectionNature of paymentApplicable from 14/05/2020 to 31/03/2021TDS Rate (%)192SalariesNormal slab rate192APremature withdrawal from EPF10193Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year7.549 more rows