top of page

Online TDS Return filing

TDS is essentially a component of income tax. A person must deduct it for specific payments made by them. Learn more with Accubucks Solution


5.0 Ratings

Get in touch

Tax Deducted at Source - TDS Definition, Filing, Return, and More

TDS is an acronym for Tax Deducted at Source in India. It is a method instituted by the Income Tax Department in which taxes are deducted from an individual's income before it is distributed to them. The amount of tax deducted is determined by applying the Income Tax Slab rates. TDS is also levied on fixed deposit and other investment interest.

TDS (Tax Deducted at Source) is a system used by the Government of India to collect taxes at the point of transaction occurrence. In this situation, the tax is taken when the payee's account is credited or when payment is made, depending on which occurrence occurs first.

For wage payments and life insurance plans, the tax is deducted throughout the payment procedure. The company making the payment is required to deposit the deducted tax amount with the Income Tax Department. TDS allows for the direct payment of a portion of the tax to the Income Tax Department, usually at 10% or within a certain range.


What is TDS? – TDS Meaning and Full Form

TDS, or Tax Deducted at Source, is income tax deducted from money paid by anyone making specified payments such as rent, commission, professional fees, salary, interest, and so on. Generally, the individual receiving the money is required to pay income tax. However, the government ensures that income tax is taken in advance from payments made by you through Tax taken at Source regulations. The net amount (after TDS) is paid to the income recipient. The receiver adds the gross amount to his income, and the TDS amount is deducted from his ultimate tax liability. The recipient accepts credit for the money that has already been deducted and paid on his behalf.

TDS must be deducted at the tax department's approved rates. The firm or individual that makes the payment after subtracting TDS is known as the deductor, while the company or individual who receives the payment is known as the deducted. 

It is the obligation of the deductor to deduct TDS before making the payment and deposit it with the government. TDS is deducted regardless of the manner of payment-cash, check, or credit-and is connected to the deductor's PAN and deducted. 

When and by whom should TDS be deducted?  

Any individual making certain payments under the Income Tax Act is obligated to deduct TDS at the time the payment is made. However, no TDS must be deducted if the payer is an individual or HUF whose records are not needed to be audited.

Individuals and HUFs are required to deduct TDS at 5% on rent payments over Rs 50,000 per month, even if the person or HUF is not subject to a tax audit. Individuals and HUFs who are required to deduct TDS at 5% do not need to apply for TAN. Your employer deducts TDS at the relevant income tax slab rates. TDS is deducted at a rate of 10% by banks. If they do not have your PAN number, they may deduct 20%. 

TDS rates for most payments are prescribed in the Income Tax Act, and TDS is deducted by the payer based on these rates. You do not have to pay any tax if you submit investment evidence (for claiming deductions) to your employer and your total taxable income is less than the taxable limit. As a result, no TDS should be taken from your earnings.

Similarly, if your total income is less than the taxable limit, you can send Forms 15G and 15H to the bank so that they do not take TDS on your interest income. If you were unable to provide documentation to your employer, or if your employer or bank has already deducted TDS and your total income is less than the taxable limit), you can file a return and demand a refund of this TDS. The entire list of Specified Payments eligible for TDS deduction, as well as the TDS rate.  

What is a TDS return?

A deductor must deposit the deducted TDS with the government and provide the data in the form of a TDS return. 

TDS returns must be submitted periodically. TDS deductions of various categories must be submitted using multiple TDS return forms.

The Accubucks Solution TDS plans cover all from consultancy to tds filing makes it simple to prepare TDS returns. Please contact us if you require assistance with your TDS returns.

When and how should TDS returns be filed?

Filing Tax Deducted at Source returns is required for all individuals who have deducted TDS. TDS returns must be produced quarterly, and different information such as TAN, amount of TDS deducted, kind of payment, PAN of deductee, and so on must be provided. Furthermore, several forms are recommended for submitting returns depending on the purpose of the TDS deduction. The following are some examples of return forms: Form 26QTDS is required for any payments other than salary. Q1 - July 31st Q2 - October 31st Q3 - January 31st Q4 - May 31st

Types of payments for TDS deductions

  • Salaries

  • Bank interest payments

  • Payment of commissions

  • Payments for rent

  • Fees for consultations

  • Professional charges

Individuals are not obliged to deduct TDS when paying rent or fees to professionals such as attorneys and physicians. 

TDS is a type of advance tax. It is tax that must be deposited with the government on a regular basis, and the onus of doing so on time is on the deductor. 

The deducted TDS can be claimed as a tax refund by the deductee when they file their ITR.

What is a TDS certificate?

TDS certifications are shown on Form 16, Form 16A, Form 16B, and Form 16C. TDS certificates must be supplied to the assessee from whose income TDS was deducted while making payment by the person deducting TDS. When TDS is deducted from fixed deposit interest, banks, for example, provide Form 16A to the depositor. The employer provides Form 16 to the employee.

TDS credits in Form 26AS

It is essential to understand how TDS is related to your PAN. TDS deductions are connected to both the deductor and the deductee's PAN numbers. If TDS has been deducted from any of your earnings, you must complete Tax Credit Form 26AS. All PAN holders have access to this form, which is a consolidated tax statement.

Since all TDS is linked to your PAN, this form reveals the TDS deducted on your income by each deductor for all types of payments given to you - whether salary or interest income - all TDS tied to your PAN is reported here. This form also includes income tax that you have personally paid - either as advance tax or self-assessment tax. As a result, it is critical that you accurately provide your PAN whenever TDS may be applied to your income.

How to Upload TDS statements

  • Go to the Income Tax website. Log in with your TAN.

  • Choose e-File > Income Tax Forms. Fill up your income tax forms on the dashboard.

  • Choose the appropriate form and fill out the necessary information.

  • Validate the return using DSC or EVC.

SMS Notifications for Greater Transparency

The income tax department has begun sending SMS to taxpayers through VK-ITDEFL indicating the amount of tax deducted at source (TDS) against the taxpayer's PAN (Permanent Account Number). Every quarter, the SMS alert will notify you of the TDS credited in respect of your income from salary, interest, and so on. The TDS amount would be accrued in your Form 26AS for the applicable fiscal year.

The Finance Ministry launched this program to promote openness and minimize the number of TDS mismatches during income tax filing. To ensure that there is no discrepancy, taxpayers can cross-check the information supplied in the SMS with the information on the payslips. A typical cause of improper income tax return filing is TDS mismatch.

The tax liability when TDS has already been deducted from income

TDS is taken from your wage based on your income tax bracket. TDS rates on other sources of income are set and range between 10% and 20%. Tax rates are not calculated based on your overall income. As a result, in some situations, you will be charged TDS on your receipts. You would be obliged to determine your yearly income separately by aggregating revenue from all sources. 

Your actual tax liability is based on your entire taxable income. You can claim credit for TDS deducted on your different receipts based on the taxes computed. To determine the amount to be paid to the income tax department, subtract the tax deducted at source from your actual tax liability. You may also be eligible for a refund. In either instance, you must file an income tax return and either pay the tax owed or receive a refund. 


Documents Required to File an Online TDS Return

  • TAN details

  • PAN information

  • Last TDS filing information, if relevant

  • The time period for which TDS must be filed

  • Date of the company's incorporation

  • Number of transactions required to file TDS returns

  • Proprietorship/ Partnership/ Company/ LLP is the name of the entity


FAQs on Online TDS Services

Question: What is the salary TDS rate?
Answer: Every employer is required to deduct TDS on salary at the employee's 'average rate of income tax' for the year. Average income tax rate = income tax liability (calculated using slab rates) divided by the employee's predictable income for the assessment year.

Question: Who is eligible for a TDS refund?

Answer: If you pay taxes at a rate of 5%, you can now obtain a TDS refund for the excess amount deducted. Similarly, if your employer did not get your 80C investment evidence or rent receipts for your dwelling rent allowance, you can obtain a TDS refund for any excess TDS withheld from your salary.

Question: Who issues the TDS certificate?

Answer: The employer on behalf of the employees issue the TDS certificate.

Question: Is it essential to tax after TDS?

Answer: Yes. Whether your employer withheld tax at source (TDS) from your pay or you paid tax yourself, you must file an income tax return.

Question: Is it possible for me to file my own TDS return?

Answer: TDS returns must be submitted on time by deductors. TDS returns can be filed online. Once the TDS returns have been electronically filed, the information will be reflected on the payee's Form 26AS. 

bottom of page