In this article I will be writing about the Tax Deduction at Source(TDS) and the rate for some of the TDS. We all aware that we need to pay the Income Tax for our income. In some cases the employer will be taking care of paying the total tax amount to the government in behalf of all the employees by deducting the tax amount from their salaries. This process is called TDS or Tax Deduction at Source. This article will explore some of the facts related to TDS. Please post your doubts in the comments section. If you like the post, subscribe to our future articles here.
What is TDS?
Taxes are deducted at the time of calculating your income. For example, your are working for a company X. Every money they will be paying you the salary of Rs.350000. If you are looking into your payslip there is a column name IT which mention the tax amount deducted from your salary. Actually the tax amount is deducted by your company and then pays to the government. Where as if you are not working for any company or doing the professional jobs like Doctor,Charted Accountant(CA),etc. You are liable to pay the tax to the government.
Who is eligible for TDS?
Not every one can deduct the tax at source. You have to apply for the Tax Deduction Account Number(TAN). TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.
How to apply for TAN?
An application for allotment of TAN is to be filed in Form 49B and submitted at any of the TIN Facilitation Centers meant for receipt of e-TDS returns. Addresses of the TIN FC are available at www.incometaxindia.gov.in or http://tin.nsdl.com. TAN is allotted by the Income Tax Department on the basis of the application submitted to TIN Facilitation Centres managed by NSDL. NSDL will intimate the TAN which will be required to be mentioned in all future correspondence relating to TDS/TCS.
Summary
In this article I have explained about the TDS and how to obtain the TAN. This is the basic knowledge on TDS and TAN. In my next article I will writing about the TDS rates and who are eligible for the TDS. Thank you for reading this article.
You can subscribe to our future articles here.
October 28, 2009 at 7:02 am
listened that form 16a is given to the companies after tax deduction
i worked for a govt organisation where they used to give form 16a to the companies after tax deduction
Please explain me
October 28, 2009 at 8:11 am
Hello Bharathi,
Thank you for writing to us. You can read this article for more details:
http://www.thinkplaninvest.com/2009/08/what-is-form-16-and-form-16a/
Thanks,
Krishna
December 19, 2009 at 11:32 pm
please keep updating me with latest tds rates, income tax rates
February 17, 2010 at 2:28 am
sir ur tax explanation are very easy to understand but u are not giving any defenition of every tax rules pls give som example like wat is tds and defenition and form 16 pls give me a tds rules i dont know why we are deducting 1%and 2% wat are the situations we have to deduct this percentage taxes pls explain me sir i am a final year student
prakashmari
March 18, 2010 at 12:38 pm
Could you please explain the difference b/w TDS and TCS with example…?
May 20, 2012 at 4:48 am
TDS- TAX DEDUCTED SOURCE
TCS- TAX COLLECTED SOURCE
WHATEVER THE INCOME DEDUCTION HAPPEND ON EMPLOYEE THAT AMOUNT USE TO CALL AS INCOME TAX DEDUCTION (I.E) TDS WHERE AS THE SAME HAS BEEN SHOWN AT THE TIME OF REMITTANCE IS CALLED TCS.
March 18, 2010 at 12:39 pm
plse share the difference b/w TDS and TCS with example..
April 25, 2010 at 9:49 pm
Hi Krishna,
I have a doubt regarding the tax payment to the govt. by the employer through TDS.
1)Employer is deducting say ex. 2,000 from salary every month.Will the employer be paying to govt every month 2,000/- or 24,000/- pa yearly ..?
2)How to reduce the tax..?
3)Can you please explain about Mutual funds and ULIP clearly…
Thanks in advance.
Syamkiran.
May 13, 2010 at 11:46 pm
hi sir, I want to ask a question. I am working in a Pvt. Ltd. company. There is my salary is 12k. sir can u pls tell me that what is the minimum criteria for pay of income tax. and also tell me that about important forms related to TDS or returns. hope that u will reply soon.
May 30, 2010 at 11:30 pm
Dear Sir,
Pls tell me basic Detail of TDS? how to TDS working?
& how to deduct tax of employee or other person?
pls reply soon.
June 8, 2010 at 9:58 pm
send this to my email id
July 22, 2010 at 1:41 am
i want to details of TDS /TAN /TIN. nd what is different in the three word.
August 18, 2010 at 2:06 am
Sir, I want to how TDS is caluclated in accouncting and in taxation
August 18, 2010 at 2:08 am
Sir, I want toknow how TDS is calculated in accounting and in taxation
August 18, 2010 at 2:08 am
Sir, I want to know how TDS is calculated in accounting and in taxation
November 11, 2010 at 6:43 am
sir,
I want to know how tds is calculated in Accounting and in Taxation.
November 25, 2010 at 9:45 pm
This article is very helpful to gain some basic knowledge about TDS.
Thank you for writing this
May 17, 2011 at 2:25 am
Can u tell me Current rates of TDS ?
May 18, 2011 at 3:00 am
nice
May 23, 2011 at 10:13 am
hello
July 29, 2011 at 5:40 am
Hi sir ,
my company given TAN number but they are not given TDS , if am asked they told in your salary not deducted any amount so we are not given TDS. what can i do is it mandatory for TDS in feature.
September 3, 2011 at 1:02 am
SIR
TDS SE RELATED BASIC KNOWLEDGE & ISKA RATE CHART & RULES KI JANKARI CHAHIYE HAI
September 19, 2011 at 10:54 pm
how to get the tan number?
November 5, 2011 at 1:12 am
pls tell me basis deatails of tds nd how to working tds
November 6, 2011 at 10:37 pm
Really this is Good Article
January 11, 2012 at 5:01 am
plz detail of tds & rule
February 10, 2012 at 9:19 am
is it possible to inquire from you my TIN#? i worked w/ St. Luke’s Med. center. i lost that ID.
February 19, 2012 at 10:37 pm
sir,tds kya hai or
please knowledge mere ko de
May 13, 2012 at 9:47 pm
Thank u for the info it was profitable
July 6, 2012 at 12:12 am
Hi. Please explain the difference between TAN and TIN. Thanks.
July 6, 2012 at 1:39 am
Hello Garima,
Tan is the Tax deduction account number. This number is alloted by the Income tax dept to an assesse who has authority to deduct the tax.
TIN is Tax payers identification number is which is new registration number uniquely identified for the dealers who are registered under the VAT. It is 11 digit number, unique throughout the country.
Thanks,
Krishna
July 26, 2012 at 6:17 pm
Hi Sir,
What is the TDS rate for job work bills?
Siva
July 30, 2012 at 2:03 pm
Is it Compulsory to enclose Form (16a) in ITR4 while filing income tax
August 3, 2012 at 3:54 pm
TAN Certificate & TDS certificate both are same?
August 22, 2012 at 1:50 pm
Hi sir,
I am working for a private company. Their main stream is different field, but they started new department with the same company.
I am working as an engineer in that new department. I am getting Rs.35,000/- per month with out any cuttings. I don’t get any salary proofs, tax forms. That means they are not paying the tax from my salary. So, i don’t know what to do.
If i want to pay the tax to govt, how? i don’t have pay slips from company.
With out salary proof, how to pay the tax?
I need personal loan very urgent. But banks are asking the salary proof and form16 documents. With out paying the tax i don’t get the form 16 …How to solve this?
Please provide the sufficient information… I really need it..
August 23, 2012 at 5:08 pm
sir,
tell me what TDS SE RELATED BASIC KNOWLEDGE & ISKA RATE CHART & RULES KI JANKARI CHAHIYE HAI
September 5, 2012 at 4:07 pm
Thanks A Lot!!!!!!!!!!!Finally my doubts are cleard……….
November 8, 2012 at 12:16 am
sir,
I want to know about tds , service tax knowledge, with proper example and illusrtation and solution. So that I can understand easily .
please suggested me best book
ThanKs
February 11, 2013 at 12:49 pm
Thank You,
You are explained very simple and understandable.
February 11, 2013 at 3:55 pm
Hi Anil,
Thank you for the comments.
March 29, 2013 at 10:38 am
Sir
I am having multi FD worth around ten lacs.
I have submitted Form 15G well in time to save my TDS.
Now let me know what more will have to be done by me in order to come out clean as I dont want to become a Tax defaulter.
I am a responsible citizen of India.
But still I am unemployed & I run my family from the monthly interests that I get from my FDs.
So tell me whether I will have to again file Tax returns.
My mail id is luv2bapi@yahoo.co.in
March 29, 2013 at 8:10 pm
What is your total income from interest?