Tax deducted at source is the income tax reduce from the money paid at the time of making specified payments as salary, professional fees, rent, etc.by the person making payments. The government with the help of TDS provisions makes sure that the income tax is deducted in advance from the payments being made by you.The recipient of the income receives the net amount after the deduction of TDS.
Types of TDS
Some of the income sources that qualify for TDS are,
- Salary
- Insurance commission
- Interest on securities
- Rent
- Online gaming
- Commission payments
- Winning amount from games as lottery, crossword puzzle, etc.
Benefits of Tax Deducted at Source
You can avail following benefits by paying TDS,
- Ensures transparency – The tax payer do not have to worry for getting cheated while paying their taxes or filing TDS returns.
- Stable income for government – With the revenue generated from TDS the Government provides us various facilities and basic necessities as, electricity, public transport, etc.
- Hassle free process – With TDS the tax payer does not have to worry as they are automatically deducted and makes it a hassle free process.
How TDS is Deposited?
Tax deducted at source has to be deposited by the income tax portal based on the TAN login. You have to click on E – Pay Tax option of Income Tax Department to make direct tax payments including TDS. Mr. Arun Narang is an experienced and well qualified person who can guide you the best for the same.
