TDS on salary or other than salary
Form 16/16A/16CS generations
Up to 100 employees/15 deductees*
Note*: maximum 2challans
TAX DEDUCTED AT SOURCE (TDS)
The TDS concept was introduced in India with the view to collect the tax at the source so, that government of India should get funds throughout the year.
How it works?
TDS is deposited by the person who is liable for payment with the help of TAN no.
Three persons are involved in TDS process: –
- Deductor: The person who deducts tax
- Deductee: The person from whose payment tax is deducted
- Government: To whom deductor submitted the tax amount
Yes, it is mandatory for deductee to give PAN no. to the deductor for deducting TDS, however, if deductee fails to provide PAN no. to deductor than deductor had to deduct TDS at higher rate @ 20% or normal rate (whichever is higher).
Yes, deductor had to file compulsory TDS return on a quarterly basis for showing the transactions on which he had deducted TDS and also had to give deductee detail.