Declare your TDS online in a few easy steps:- www.deekpay.com

Individuals can choose from a wide range of occupations to obtain additional sources of income. However, individuals are also responsible for paying taxes to the government. Taxpayers bear a significant impact and tax deductions become essential. This process is known as Tax Deduction at Source (TDS).

Under Indian law, the Indian tax system incorporates a scheme to collect income tax, which is automatically deducted from a taxpayer's bank account. Income tax is a direct tax that every earner has to pay to the government. Every individual who earns income has experienced this tax deduction in one form or another.

The tax deduction system is a system whereby the employer or withholding agent deducts the amount of tax and deposits the amount with the Income Tax Department. The amount of tax deduction varies according to the age group and income level of the individual. Usually, tax deduction is done by deducting a certain amount of rent, commission, salary, professional fees, etc., thus reducing a larger portion of our salary.

Under the Income Tax Act, any company or individual can deduct tax at source. The recipient is also liable to pay tax.

How does TDS work?

The tax deduction applies to all taxable income. However, it is deducted at a fixed rate. The rate depends on the type of income, not the amount of income, unless it is wage income. In the case of wage income, the employer can assess the employee's expected gross income.

Income tax TDS payments occur in the applicable tax bracket and may be adjusted in the middle of the year based on assessments and investments. Therefore, it becomes crucial for employed taxpayers to pay TDS at the beginning of the financial year to avoid last minute losses.

Examples of tax deductions at source

As per the Income Tax Act, TDS rate is applicable on rental payments of resident individuals and Hindu Undivided Family (HUF). When the monthly rent exceeds 50,000/-, the TDS rate is 51 TP3T.Thus, if the rent of the house is 70,000/- per month, the TDS will be 3500/- per month. The tenant will thus have to pay 66,500/- to the landlord and deposit 10,500/- to CBDT every quarter. Similarly, for salary earners, the company may deduct TDS of 10%.

How to declare your TDS online?

Online TDS payment, also known as Income Tax e-filing, is quick and easy and can be done within minutes. Here are the steps to make e-TDS payment using TDS Challan 281:

Visit NSDL website to complete the process of e-payment of income tax. Click on "CHALLAN NO./ITNS 281" in the TDS/TCS section. Thereafter, the page will be redirected to the e-payment page. You need to fill in the following details including nature of payment, mode of payment etc.: Under "Applicable Tax Type", select "Corporate Deductor" if the TDS deduction is made on payment to the company. If not, select "Non-Corporate Deductor" TAN is mandatory. Therefore, please enter the TAN and the assessment year in which the TDS was withheld. Enter the postcode of your location and select the state from the drop down menu. Choose between two options: TDS payment deducted and payable by you or TDS for regular assessment and select "Nature of Payment" and "Payment Method" from the drop down menu. Click on the "Submit" button.

After submission, the confirmation screen will be displayed. If the TAN is valid and confirmed, the screen will display the taxpayer as per the full name of the stored data. After confirming the information provided, the online banking website matching the given bank details will be opened. Login to the bank website using the user ID and make the payment. Once the payment is completed, a TDS challan online counter with CIN, payment details and name will be generated.TDS Paid Challan Download file will be the proof of completion of payment. After payment of TDS, proceed to file your TDS return.Tax Return eFiling has a simple process.

reach a verdict

TDS is an important obligation as it is levied at source itself. Every individual who earns income must ensure that he/she does not evade the tax. Every individual must pay close attention to the payment of taxes as late filing of returns will result in penalties and fines.

It is also important to keep a proper record of all online e-payment of tax bills. Updates in TDS regulations should also be noted. Employers should ensure that the correct amount of tax is deducted from the salary income.

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common problems

Is TAN mandatory for filing TDS?Yes, it is mandatory under the Income Tax Act, 1961. The Income Tax Department allows the use of TAN.Is TDS mandatory for securities income? Yes, TDS is mandatory for income arising out of securities income.On what date should the tax return be filed? It has to be deposited by 7th of the following month. The deadline is extended in case of rentals, property purchases etc. What is the penalty for late filing of TDS? Late filing will result in 1% interest on the undeducted tax. How much tax is deducted from salary? Based on the salary, the TDS amount is calculated. Employer's investment is also considered.