Tax Deducted at Source or TDS is a source of collecting tax by Government of India at the time when a transaction takes place. Here, the tax is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier.

In case of payment of salary or life insurance policy, tax is deducted at the time of payment. The deductor then deposits this TDS amount to the Income Tax (I-T) department. Through TDS, some portion of your tax is automatically paid to the I-T department. Thus, TDS is considered as a method of reducing tax evasion.

Tax is deducted usually over a range of 1% to 10%.

Form 24Q

It is used for preparing E-TDS returns for the TDS deducted on salary under Section 192 of the Income Tax Act, 1961. It has to be submitted on a quarterly basis by the deductor. It contains details like salaries paid and the TDS deducted of the employees by the employer.

Form 26Q

Form 26Q: TDS Return filing for Non Salary Deductions. This payment is other than payment of salary, and the payer has to file TDS return in Form 26Q. 26Q is to be submitted on a quarterly basis. Total amount paid during the quarter and TDS amount deducted on such payments have to be reported in 26Q.

Form 27Q

27Q is the statement of TDS return that is required to be filed when tax is deducted and deposited while making payments (other than salary) to non- residents. ... It is required to be furnished every quarter just like Form 24Q (for salary payments) and form 26Q (for non- salary payments).

Form 26QB

The TDS on immovable property has to be paid using Form 26QB within 30 days from the end of the month in which TDS was deducted. After depositing TDS to the government, the buyer is required to furnish the TDS certificate in form 16B to the seller. This is available around 10-15 days after depositing the TDS.

Promptadvisory.com is a group of highly qualified, experienced and dedicated professionals like Chartered Accountants, Lawyers, Company secretaries and IT professionals who facilitates and make sure to provide the best end to end incorporation services for all types of business organisations. We, at Prompt Advisory also provide all kinds of legal, professional, management and advisory services to our clients in India and abroad. At Prompt Advisory, all the services are very quick, easy and affordable. For more information, you may get in touch with our compliance manager on +91 6352119045 or email info@promptadvisory.com for free consultation.