TDS is a specific amount that’s automatically deducted by a tax collector when you’re paid a salary or commission, or pay rent, interest, etc. The tax collector deducts the tax at source, while you have to file your taxes and pay the rest of what you owe each year. It reduces tax evasion because the tax will be collected before it’s due. Taxpayers can earn income in various ways. Tax Deducted at Source (TDS) is a direct tax that they need to pay, depending on which bracket their total income falls into. According to the Indian tax system, TDS is an essential term in taxation that has a big effect on taxpayers. It is a means of collecting income tax by the government and offers convenience to them because it gets deducted automatically.

How to Claim Refund of TDS deducted?

The Income Tax Department will refund the TDS if you file your income tax returns and show that you have paid tax. Once the ITR is filed, the refund will be processed within 6 months and can be credited to your bank account. You can check on the official website of the Income Tax Department to see the status of your refund.

Benefit of TDS filing online. The advantages of collecting TDS are mentioned below point wise:

• Its help government to prevents people from evading taxes.
• TDS is prime source of income for government and its department.
• It is new source of income for government.
• Tax Collection Agencies and Deductor are relieved of some of their responsibilities.
• It’s convenient for the taxpayer as the Tax Office makes automatic deductions.

All about TDS Certificate

It can be hard to keep track of taxes deducted at source (TDS) by yourself, as the deductions are collected on an ongoing basis. The deductor gives a TDS payment certificate to the payee/deductee as per Section 203 of the Income Tax Act. Banks also offer this certificate for deductions on pension payments or other forms of income. The certificate is valid only if it is issued at the deductor’s own letterhead. Everyone should ask for a TDS certificate whenever it is applicable.

Document need for filing TDS Return. Before you start your e-filing process, make sure you have all the relevant documents handy.

• Soft copy of PAN card or PAN card details issued by income tax department.
• Soft copy of Aadhar Card or Aadhar no issued by UIDAI.
• Soft copy of Bank passbook or Bank statement, PPF account statement or post office saving account passbook.
• Valid Phone no and Email ID for OTP and intimation purpose.
• Soft copy of Salary slip issued by Employer in case of employed person