Is TDS income taxable?

Is TDS income taxable?

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.

Is TDS refund an income?

Interest on TDS Refund The interest earned on tax refund is also taxable since it is considered under ‘income from other sources’.

How can I claim TDS refund?

You just need to visit the income tax portal and login to download the relevant form for an income tax refund. Enter all the particulars and submit the form. If the employer has deducted tax when you are not eligible for it, you can claim the amount by filing income tax returns (ITR).

Who should pay TDS?

New Section 194R- TDS at 10% should be deducted by any person who provides perks or benefits, whether convertible into money or not, to any resident for carrying out any business or profession by such resident.

What is the difference between TDs and income tax?

The TDS is said to be deducted at the source level and that also on the periodic basis in a particular year.

  • When it comes to TDS then it means that it is just a partial contribution on the total annual income of a person.
  • As the matter of fact in TDS the tax is deducted by the payer and the government remits it on behalf of the payer.

    • Is TDs a direct tax or an indirect tax?

    Tax Deducted at Source or TDS is a way of collecting indirect tax by The Government of India, as per the Income Tax Act, 1961. TDS that comes under IRS (Indian Revenue Service) is directly managed by CBDT (The Central Board of Direct taxes). TDS is collected in order to keep the revenue source stable for the govt.

    When is TDs to be deducted?

    Obtain a TAN by applying in from 49B

  • Deduct tax from the income or payment specified above
  • Deposit the deducted amount from such income or payment within the time limit as specified to the credit of central government
  • File your quarterly TDS return with the IT department in accordance to the IT provisions.

    • Is TDS deducted monthly or annually?

    TDS is a small amount of tax that can be deducted monthly, annually, periodically or occasionally from the earning of an individual or a business (the earning is not limited to salary but also includes interest, commission, fee etc.) Note: The earning could be regular or irregular in nature.

    https://www.youtube.com/watch?v=4V893yy_GCA