Tax Deducted at Source or TDS is a kind of deduction of tax under the Income Tax Act, 1961 directly at the source of income. The tax is deducted from the income by the income payer and transferred directly to the government on behalf of the payee. TDS is usually deducted on salary, rent payments, payments to contractors, etc.
The income payer needs to get a TAN or Tax Deduction Number to file a tax return quarterly, known as the TDS return. TDS Return is a quarterly return filed with the Income Tax Department. TDS return filing is mandatory for anyone who has a TAN.
The first step in TDS return filing is the calculation of total TDS deducted based on the documents submitted. On the basis of these documents, a TDS return is prepared and the data is verified from the deductor. The TDS return is filed and the TDS certificates can be downloaded after TDS challans are received.
- Copy of TDS challans deposited
- PAN of deductees
- Amount of TDS deducted and date of deduction
- Exemption Certificates if TDS is not deducted on any payments
- Nature of expense for which TDS is deducted
- Bank Statements and Invoices