Tax deduction at source

Under the Indian Income Tax Act of 1961, income tax must be deducted at source as per the provisions of the Income Tax Act, 1961. Any payment covered under these provisions shall be paid after deducting a prescribed percentage of income tax. It is managed by the [Central Board for Direct Taxes] (CBDT) and is part of the Department of Revenue managed by Indian Revenue Service. It has a great importance while conducting tax audits. Assessee is also required to file quarterly return to CBDT. Returns states the TDS deducted & paid to government during the Quarter to which it relates.

Due Date for TDS Filing

The due date for Payment of TDS deducted is seventh of the next month. The due date for TDS filing is as follows:

QuarterPeriodThe due date for Filing Form 27Q
Q11st April-30th JuneOn or before 31st July
Q21st July-30th SeptemberOn or before 31st October
Q31st October-31st DecemberOn or before 31st January
Q41st January-31st MarchOn or before 31st May

TDS certificates

A deductor is required to issue a TDS certificate called form 16 for salaried employees and form 16A for non-salaried employees within a specified time. Form 16D is a TDS Certificate issued for payment of a commission, brokerage, contractual fee, the professional fee under section 194M by the payer. Under Section 194M if the payments to resident contractors and professionals exceeding INR 50,00,000 during the Financial Year, the payer/deductor has to deduct tax at the rate of 5% from the sum payable to a resident payee/deductee.

Deductor has to issue TDS Certificates within two months of the next financial year.

TDS Refund

A TDS Refund arises when the taxes paid by way of TDS are greater than the actual tax payable calculated for the Financial Year. It is calculated after consolidating income earned from various sources. we all, as taxpayers, are categorized under various tax slabs. At the time of filing your income tax return, you would sum up all your income from various sources, find out the tax liability, and subtract the TDS applied to your income. If the TDS is higher than your total tax liability for the financial year, it means a refund is due from the government.

In case you do not have taxable income, you can apply for a lower or NIL TDS certificate from your jurisdictional Income Tax Officer in Form 13 as per Section 197. You can submit the Nil deduction order passed under section 197 to the TDS deductor.


QUS:- What is TDS?

Tax deduction at source (TDS) in India is a means of collecting tax on income, dividends or asset sales, by requiring the payer (or legal intermediary) to deduct tax due before paying the balance to the payee (and the tax to the revenue authority).

QUS:- What is e-payment of taxes?

This is a facility provided to the taxpayers to make income tax payments through internet, using Net-banking/Debit card of the selected Bank.