TAX DEDUCTION AT SOURCE (TDS)
TDS is deducted from the payments made by the individuals as per Income Tax Act. It is managed by the Central Board of Direct Taxes (CBDT), which comes under the Indian Revenue Services (IRS).
Under TDS, when an assesses gets his income, there will be a TDS deduction by the person (diductor) paying the assesses and is submitted to the income tax department.
The assesses then files the TDS return and the tax calculated from his income will be deducted and the final amount will be refunded.
TDS is exempted in the following 2 cases:
Income tax slab for individual taxpayers & HUF
(less than 60 years old) (both men & women)
Assessment Year 2018-19
Taxable income
Tax Rate
Up to Rs. 2,50,000
Nil
Rs. 2,50,000 to Rs. 5,00,000
5%
Rs. 5,00,000 to Rs. 10,00,000
20%
Above Rs. 10,00,000
30%
Less: Rebate under Section 87A
Add: Surcharge and Education Cess
In case of a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)
Assessment Year 2018-19
Taxable income
Tax Rate
Up to Rs. 3,00,000
Nil
Rs. 3,00,000 - Rs. 5,00,000
5%
Rs. 5,00,000 - Rs. 10,00,000
20%
Above Rs. 10,00,000
30%
Less: Rebate under Section 87A
Add: Surcharge and Education Cess
In case of a resident super senior citizen
(who is 80 years or more at any time during the previous year)
Assessment Year 2018-19
Taxable income
Tax Rate
Up to Rs. 5,00,000
Nil
Rs. 5,00,000 - Rs. 10,00,000
20%
Above Rs. 10,00,000
30%
Add: Surcharge and Education Cess
TDS Last Dates of FY 2018-2019 for Return Filing
Quarter
Period
Last Date of Filing
1st Quarter
1st April to 30th June
31st July 2018
2nd Quarter
1st July to 30th September
31st October 2018
3rd Quarter
1st October to 31st December
31st January 2019
4rd Quarter
1st January to 31st March
31st May 2019
The TDS certificate will be given as
For the late filing of TDS return, there is a penalty of Rs. 200 per day or the amount of TDS payable whichever is lower out of the two.
1. What is TDS?
TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments.
Usually, the person receiving income is liable to pay income tax. But the government with the help of Tax Deducted at Source provisions makes sure that income tax is deducted in advance from the payments being made by you.
The recipient of income receives the net amount (after reducing TDS). The recipient will add the gross amount to his income and the amount of TDS is adjusted against his final tax liability. The recipient takes credit of the amount already deducted and paid on his behalf.
For instance:
Shine Pvt Ltd makes a payment for office rent of Rs 80,000 per month to the owner of the property.
TDS is required to be deducted at 10%. Shine Pvt. ltd must deduct TDS of Rs 8000 and pay balance Rs 72,000 to the owner of the property.
Thus, the recipient of income i.e. the owner of the