Tax deducted at Source or TDS is a source of collection of 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.
A person who is responsible to deduct tax at source has to file the TDS return as part of compliance. A TDS return is submitted by tax deductor in respect of every quarter with the Income Tax Department. The return is a statement that requires the details of the tax collected, source of collection and tax paid to Government for the reporting period.
The basic requirement for filing a TDS Return is to obtain a valid TAN (Tax deduction account number). Generally tax is deducted on types of payments such as salaries, interest, professional fees, payment to contractors, rent of machinery, rent of building etc. There are prescribed rates for every type of TDS payments under the Income Tax Act 1961.
Types of TDS Return Forms:
TDS return Form 24Q: Statement for tax deducted at source from salaries.
TDS return Form 26Q: Statement for tax deducted at source on all payments other than salaries.
TDS return Form 27Q: Statement for tax deduction on income received from interest, dividends, or any other sum payable to non residents.
TDS return Form 27EQ: Statement of collection of tax at source.
TDS return Form 26QB: TDS on payment for transfer of certain immovable property.