When should TDS be deducted and by whom?
Anyone making a specified payment as described by the Income Tax Act is required to deduct TDS at the time the specified payment is made. However, if the payer is an individual or HUF whose books are exempt from audit, no TDS must be subtracted. However, even if an individual or HUF is not subject to a tax audit, they must deduct TDS at 5% from rent payments made by them that exceed Rs 50,000 per month. Additionally, these Persons and HUF who are subject to TDS @ 5% are exempt from applying for TAN. Your employer deducts TDS at the applicable income tax rate. Banks deduct TDS at 10%. If they don't have your PAN, they could also take 20% off. The income tax statute specifies the TDS rate for the majority of payments, and the payer deducts TDS based on these rates. If your total taxable income is less than the taxable limit and you provide your employer with investment proofs (to claim deductions), you are not required to pay any tax. There should be no TDS deducted from your income as a result. Similar to this, you can give the bank Forms 15G and 15H to prevent TDS from being deducted from your interest income if your total income is below the taxable limit. You can file a return and request a refund of this TDS if you were unable to provide your employer with the necessary documentation or if your employer or bank has already deducted TDS and your total income is below the taxable limit. the entire list of Specified Payments that are subject to TDS deduction, together with the applicable TDS rate.
Due date of depositing the TDS to the Government
The Tax Deducted at source must be deposited to the government by 7th of the subsequent month. As TDS Deducted in the month of June must be paid to the Govt. by 7th July.
