Tax Deducted at Source
TDS full from is Tax Deducted at Souce. Under this mechanism, if a person (deductor) is liable to make payment to any other person (deductee) will deduct tax at the source and transfer the balance to the deductee. The TDA amount deducted will be remitted to the Central Government.
Types of TDS
Here are some of the Income Sources that qualify for TDS:
- Salary
- Amount under LIC
- Bank Interest
- Brokerage or Commission
- Commission payments
- Compensation on acquiring immovable property
- Contractor payments
- Deemed Dividend
- Insurance Commission
- Interest apart from interest on securities
- Interest on securities
- Payment of rent
- Remuneration paid to the director of a company, etc
- Transfer of immovable property
- Winning from games like a crossword puzzle, card, lottery, etc.
Benefits of Tax Deducted at Source:-
- It prevents people from evading taxes.
- It ensures a steady source of revenue for the Government.
- The Tax Collection base is widened.
- The burden of responsibility of the Tax Collection Agencies and the Deductor is lessened.
- It is convenient for the deductee as Tax is automatically deducted.
Required Documents For Tax Deducted at Source:-
- Aadhar Card
- Pan Card
- Bank Statement/Bank Passbook
- Income Tax Login ID & Password