What is TDS? Why is it mandatory to be deducted from my salary?

What is TDS? Why is it mandatory to be deducted from my salary?

TDS stands for 'Tax Deducted at Source'. The purpose of TDS is for the government to collect tax at the source from where a taxpayer’s income is generated. TDS is used as a tool to minimise tax evasion by taxing a part (or whole) of the income at the time it is generated rather than the end of the financial year.

 


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    • TDS

      TDS means any tax is deducted on your income/ receipts. You can find these details in Form 26AS. By uploading Form 26AS these data will be automatically filled up. TAN(Tax deduction and Collection account number)= You will get this at the form 16 or ...

    • How to Read Form 16A for Entering TDS Details

      Form 16A: It is a TDS Certificate certifying the amount of TDS deducted, Nature of Payments and the TDS payment deposited with the Income Tax Department. Form 16A is issued for TDS deducted other than Salary.

    • At what rate should the TDS be deducted u/s 194A?

      TDS is to be deducted at the rate of 10%. If the recipient of income doesn’t furnish his PAN to deductor, then TDS is to be deducted @ 20%. No surcharge, education cess or SHEC will be added to the basic rates.

    • Where do I find the details of the TDS deducted from my income throughout the year?

      All the details regarding TDS at every source of income throughout the year, the amount of tax deducted and deposited in the person's name/PAN is available in Form 26AS.

    • Is TDS deducted on my savings account interest?

      No, there is no TDS on interest income from savings account