Tax Deducted at Source or TDS is a source of collecting 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. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government. Through TDS, some portion of your tax is automatically paid to the I-T department. Thus, TDS is considered as a method of reducing tax evasion. Payment for TDS needs to be made by 7th of following month (Eg: For Aug, 2019- payment to be made by 7th Sep, 2019)
What is TDS Return?
Apart from depositing the tax, the deductor should also file a TDS return. TDS return is a quarterly statement to be given to the I-T department. It is compulsory for deductors to submit a TDS return on time.
Due dates of TDS Return
|1st Quarter||1st April to 30th June||31st July|
|2nd Quarter||1st July to 30th September||31st October|
|3rd Quarter||1st October to 31st December||31st January|
|4th Quarter||1st January to 31st March||31st May|