Tax deducted at source means when tax is deducted at the time of payment of certain specified payments.
Q. Who is liable to deduct the tax at source?
Ans. Any person who is responsible for making specified payments is liable to deduct tax at source at prescribed rates from such payments.
Q. What are the specified payments for the purpose of TDS?
Ans. Salary, Interest on Securities, Interest on 8% Saving taxable bonds, Interest on deposits, Interest on personal loans, Interest on debentures, Winning from lotteries, Winning from horse races, Payment to contractors and sub-contractors, Payment of commission, Payment of rent, Payment of Technical fees or professional fees etc. are some few important payments against which Tax is to be deducted at source.
Q. I have given my office on rent to M/s XYZ Limited and annual rent of the office premises for Rs.300000/= per year. Will they deduct the TDS on this payment?
Ans. Yes, If the amount of rent of building during a financial year is more than Rs.180000/= then M/s XYZ Limited shall deduct tax at source from you 10%.
Q. I have deposited Rs.500000/= with Syndicate Bank as Fixed Deposit. During a Financial Year, I shall receive the interest for Rs.40000/= from bank. Will they deduct TDS on this interest?
Ans. Yes, if the interest on fixed deposits exceeds Rs.10000/= during a financial year then the bank shall definitely deduct the TDS. In your case the interest amount is Rs.40000/=. That is certainly subject to TDS.
Q. I am technical person. I have raised a bill of my services for Rs.29500/= for a financial year to M/s XYZ Limited. Will they deduct the TDS on this amount?
Ans. No, they will not deduct the TDS on Rs.29500/= because in a financial year, if any fees for technical services exceeds Rs.30000/= then only the TDS shall be deducted.
Q. I have an interest income of Rs.60000/= from fixed deposit with schedule bank during a financial year and my total income during financial year is below taxable limit including interest from fixed deposits. Will Bank deduct the TDS on interest since it exceed Rs.10000/= during financial year?
Ans. No, if you submit Form 15-G in case you are an individual and not a senior citizen and if you are a senior citizen then you have to submit Form 15H with bank in proper time. Better, if you submit your Form 15G or 15H during the month of april’15.
Q. What is time limit for depositing TDS?
Ans. If the payment is made or credited to the payee’s account in the month of March then TDS should be deposited on or before 30th April and in other cases it should be deposited within seven days from the end of the month in which the deduction is made.
- Learn Accounting, Free Accounting Tips
- General Accounting Terms
- General Tips Relating to Indian Income Tax Act
- Free Tally Learning
- General Tips Relating to Sales Tax-VAT