Tax Deducted at Source: A Brief Analysis

| Last updated: 14 August 2023

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Quick Summary

Tax Deducted at Source (TDS) is a system where the payer deducts a specific amount of tax from certain payments and remits it to the government. This applies to payments like salaries, interest, rent, and professional fees. The deducted amount is reflected in a TDS certificate, which recipients use to claim credit when filing their income tax returns, thereby reducing their tax liability. Online TDS payments can now be made via the e-Pay Tax facility on the Income Tax e-Filing portal.

Table of Contents When TDS is deducted? How to Know the Deducted TDS amount? How to pay TDS online? Is TDS required on payments made to the government? What to do if TDS credit is not reflected in Form 26AS? Is there a requirement to deduct tax from the sale proceeds when buyin

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FAQ :

TDS is a system where the person making certain payments deducts a specific amount of tax at the time of payment and remits it to the government on behalf of the recipient.

TDS is usually deducted on payments such as salaries, interest, rent, commissions, professional fees, and contract payments, at rates specified by the tax department.

TDS payments can be made online through the e-Pay Tax facility on the Income Tax e-Filing portal.

If your TDS credit is not reflected in Form 26AS, you should contact the payer to understand why it hasn't been reflected, as it could be due to non-filing of the TDS statement or incorrect PAN details.

Yes, if you buy immovable property (excluding rural agricultural land) from a resident seller for Rs. 50,00,000 or more, you must deduct 1% TDS on the sale proceeds under Section 194-IA.