What is Tax Deduction at Source (TDS) ?

In business, there are certain payments whereby tax at certain percentage is to be deducted at source, remitted to the Govt on behalf of the deductee(s) on or before 7th of the following month and a return called TDS return to be filed for each quarter disclosing the details of the person(s) for whom the taxes were deducted at source and remitted.

What are the payments where TDS is applicable?

Following are some of the expenses whereby tax to be deducted at source: (as of Sep 2017)

– Salaries
– Contractual Payments
– Professional or Technical Skills
– Rental payment
– Brokerage / Commission

What happens if the Tax is not deducted at source?

The entire expenses will be considered as ‘disallowed’ if tax is not deducted at source.

What happens if the tax is deducted but remitted late to the Govt?

If the TDS amounts are remitted after the due date, then interest at the rate of 1.5% per month will be charged by Govt.

What happens if the tax is deducted, remitted on time but the quarterly returns are filed late?

If the quarterly returns are filed beyond the due date, then late filing fee of Rs. 200 per day will be charged by Govt.

Contact us at info@cogzidel.in to take care of TDS compliance.