TDS or Withholding Tax
Tax Withholding at Source (TDS) is a mechanism where the payer of specific income is required to deduct tax at source before paying the recipient (payee) the full amount. This deducted tax is then deposited with the government on behalf of the payee.
Why is TDS important?
- Ensures timely collection of tax:TDS facilitates the government to collect tax revenue throughout the year, promoting financial stability.
- Reduces tax burden on individuals:By paying tax throughout the year, TDS prevents a large tax payment at the end of the financial year, easing the burden on individuals.
- Reduces tax avoidance:The system discourages tax avoidance by collecting tax upfront from the source of income.
Who is responsible for deducting TDS?
Certain categories of individuals and entities, acting as deductors, are responsible for deducting TDS on specific payments made to other individuals or entities, known as deductees.
Examples of transactions where TDS is applicable:
- Salaries:Employers deduct TDS from employee salaries as per the applicable tax slab.
- Rent:Tenants paying rent to landlords above a specified threshold are required to deduct TDS.
- Interest:Banks and financial institutions deduct TDS on interest earned on deposits.
- Professional fees:Individuals or companies paying professional fees for services may need to deduct TDS.
How to claim the deducted tax (TDS):
The deducted tax can be claimed by the payee by filing their income tax return.
What SAKH & Associates offers?
We are offering TDS return filing service at a reasonable price that totally fulfil the customer’s requirements and demands. We provide the following services:
- We provide end to end-to-end filing of TDS forms 24Q, 26Q as 27EQ as per Government guidelines.
- New payroll and database is created and form 16/16A can be issued.
- Proper care is taken of data and make the data error free.
- Advisory services
- TDS arbitration
- Assistance in securing TAN Number
- Computation of TDS on Salary of Employee u/s 192, management of TDS workers declaration on behalf of the client.
- Help in securing a limited deduction or lower deduction of TDS certificate u/s 197 of income tax act 1961
Reconciliation of TDS from books of accounts
