TDS or Tax Deducted at Source, is a way of collection of tax indirectly by Indian Revenue authorities according to the Income Tax Act, 1961. TDS is managed by the Central Board of Direct taxes (CBDT).
TDS is collected as a means to keep a stable revenue source for the government throughout the year, while desisting people from avoiding taxes.
Due Date of Filing of TDS Return
Last Date of Filing
|1st Quarter||April to June||31st July|
|2nd Quarter||July to September||31st October|
|3rd Quarter||October to December||31st January|
|4th Quarter||January to March||31st May|
Frequently Asked Question
What is the minimum salary one should have for TDS to be deducted by the employer?
An individual earning less than Rs. 2.5 lakh, senior citizens with a salary of less than Rs. 3 lakh and super seniors (above the age of 80) earning less than Rs. 5 lakh, do not need to pay tax and hence no TDS has to be deducted from their remuneration.
Is TDS applicable only on salary?
No. TDS is also applicable on items such as income from interests on savings, fixed and recurring accounts, securities and deemed dividends, income from horse racing and insurance commissions, lottery or game-related prize money, payment in NSS deposits, repurchase of UTI or mutual fund units, etc.
How do I know how much TDS has been deducted and whether it has been credited to me?
The employer/deductor is liable to give you a TDS certificate or Form 16 and 16A confirming the amount of tax deducted. You can also log in to your Income Tax e-filing portal and check either your Form 26AS or ‘View Your Tax Credit’ option on the menu.
What will happen if the tax deductor fails to deduct tax or deposit the collected tax with the government?
The deductor will have to pay an interest on the amount due to the government under Section 201 of the Income Tax Act.
Is an employee responsible if the deductor fails to collect or deposit the tax?
No. The onus of deduction and deposit of tax collected at source lies with the employer/deductor and not an employee or deductee.