What is TDS Returns?
The practice of minimizing tax avoidance and spillage by making it obligatory to deduct TDS from payments at pre-defined rates is Tax Deducted at Source (TDS). If your boss pays you salaries, or your buyer pays you taxes, or the bank pays you interest on deposits, TDS deduction laws and rates are specifically prescribed. To deduct the TDS and deposit the same with the Government of India, the payer is necessary. The sum net of TDS is paid by the payee. This is deemed to be part of the tax paid and if excess TDS has been deducted, then the Income Tax Department will file returns and demand the refund.
TDS is not only about deducting tax; TDS returns must also be filed :
Apart from the tax allowance and the tax on the government account, the deductor must also apply a TDS return in the form of a quarterly declaration to the I-T department. These TDS returns can be submitted electronically, which appears on the payee’s Form 26AS. Tax deductors are obliged to send TDS returns in due course.
The TDS return submitted should contain details of the deductor’s TAN and PAN number, payee PAN number, tax amount charged, TDS challan info, payment method, etc. The employer or the company deducting TDS must be presented with a correct tax and deduction account number to file the TDS (TAN).
- Salary, fees and commissions
- Income from Securities
- Winnings from the lottery, puzzles, horse races, etc.
- Insurance Commission
- Payment in respect of National Saving Scheme and many others
What is TCS Returns?
The practice of minimizing tax avoidance and spillage by making it obligatory to deduct TDS from payments at pre-defined rates is Tax Deducted at Source (TDS). If your boss pays you salaries, or your buyer pays you taxes, or the bank pays you interest on deposits, TDS deduction laws and rates are specifically prescribed. To deduct the TDS and deposit the same with the Government of India, the payer is necessary. The sum net of TDS is paid by the payee. This is deemed to be part of the tax paid and if excess TDS has been deducted, then Tax Mill will file returns and demand the refund.
Exemptions in TCS :
Tax collection at source is excluded in the following cases :
- At Lower Rate
An appeal to the Assessing Officer for tax collection at a lower rate must be made. This exception can be given only if the officer is confident that the buyer’s gross revenue warrants a lower premium. A certificate with a lower collection rate would be issued by the officer.
- Total Tax Exemption
The customer must sign a statement claiming that the TCS regulations do not apply to him. Form 27C must be used to render such a statement. The customer bears the burden of proving that the products were used for manufacturing, processing, or distribution.
