Tax Deducted At Source is the tax deducted by deductor before paying any amount to deductee. It is a kind of Advance Tax where the amount of tax is paid periodically as mentioned in the Act.
TDS involves two parties: one who deducts tax called Deductor. A person or company who pays amount to other will have to deduct tax if it exceeds the mentioned amount. Other person or company who accept the deducted amount is Deductee.
The liability of payment of tax lies with Deductor. There are several types of payment in which TDS is to be deducted. This must be paid irrespective of mode of payment(cash, cheque or bank transfer). PAN no. of deductor is to be furnished in its return. TDS return is to be filled quarterly in a year.
In the Interim Budget of 2019, there were several changes in Section 194A and 194I. The TDS limit under section 194A is hiked from Rs.10,000 to Rs.40,000 for Post office saving account and Bank deposits.
For Section 194I ,i.e., Rental Income, no tax is required to be deducted on Rent payments made for use of any land or buildings or furniture or fittings for income not exceeding Rs. 2,40,000.
TYPES OF TAX DEDUCTED AT PAYMENT:-[table “3” not found /]