![]() The taxpayer gets the facility to claim the credit and their refund on the basis of the TDS Certificate. The TDS Certificate shows the details such as particulars of tds payment, the date on which the tax was deducted and the date of when it was credited to the Government. The Form issued by the person who deducts the TDS is known as TDS Certificate. The person who receives the payment after the deduction of the tax is known as ‘deductee’. The person who has the responsibility to deduct the tax before making the payment and depositing it to the Government’s account is known as ‘deductor’ and after deducting the tax he has to issue a TDS Certificate as per section 203 of the Income Tax Act 196. ![]() The TDS works on a concept that every person who is making any specified type of payments to anyone shall deduct tax at the rate which is prescribed in the Income Tax Act at the source and deposit it to the government’s account. The Income Tax Act has prescribed different rates for different payments and different recipients such as payment of redemption proceeds by a debt mutual fund to Non-Resident Indian is subject to TDS whereas a resident individual is not subject to TDS. TDS is not applicable on similar rates on every income and payment. It is applicable on several incomes such as interest received, salaries, commission received, etc. ![]() TDS was introduced to collect tax at the source of the income of the individual from where the income is originated. TDS or Tax Deducted at Source is used by the Government as a tool for collecting tax for the purpose of minimising tax evasion by taxing the income at the time it originated rather than at a later time. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |