OVERVIEW
As per Income Tax Act, If an Individual, Partnership Firm, Pvt Ltd. Co., OPC, or LLP incurred some expenses related to his business or profession,
has to deduct an amount of Tax before payment made to the supplier of that services and has to deposit the said tax to the Government.
The tax so deducted called Tax Deduction at Source (TDS).
• Salary
• Interest
• Commission & Brokerage
• Insurance Commission
• Lottery
• Contracts & Sub Contracts
• Rent of Building and Machinery
• Legal & Professional Charges
• Payment made to Foreign Suppliers for above said reason
• For deduction of TDS, an Individual, Partnership Firm, Pvt Ltd. Co., OPC, or LLP is required to have TAN number – Tax Collection and Deduction Account Number.
• It is mandatory to deduct TDS by the following eligible person:
• Private Limited Company
• One Person Company
• Limited Liability Partnership Firm (whose accounts are required to Tax Audit u/s 44AB)
• Partnership Firm (whose accounts are required to Tax Audit u/s 44AB)
• Individual (whose accounts are required to Tax Audit u/s 44AB)
• TDS return is a statement of a person whose tax was deducted by the Company and other eligible persons. • An eligible person has to specify bill wise expense details in this TDS return statement.
TDS is required to deduct on the following expenses:
• Salary
• Interest
• Commission & Brokerage
• Insurance Commission
• Lottery
• Contracts & Sub Contracts
• Rent of Building and Machinery
• Legal & Professional Charges
• Payment made to Foreign Suppliers for above said reason
• For deduction of TDS, an Individual, Partnership Firm, Pvt Ltd. Co., OPC, or LLP is required to have TAN number – Tax Collection and Deduction Account Number.
• It is mandatory to deduct TDS by the following eligible person:
• Private Limited Company
• One Person Company
• Limited Liability Partnership Firm (whose accounts are required to Tax Audit u/s 44AB)
• Partnership Firm (whose accounts are required to Tax Audit u/s 44AB)
• Individual (whose accounts are required to Tax Audit u/s 44AB)
• TDS return is a statement of a person whose tax was deducted by the Company and other eligible persons. • An eligible person has to specify bill wise expense details in this TDS return statement.