What is TDS: Our salary is divided into many parts. We get some part as salary every month. So some part gets cut. TDS is also one of these parts. If TDS is also deducted from your salary, then you should consider some things. Let us understand TDS and all the important aspects related to it.
What is TDS?
TDS means Tax Deducted at Source. It is a tax that is deducted from income. You can also understand it in such a way that whatever the source of income of a person, the tax deducted from it is called TDS. It is an indirect tax.
Along with understanding TDS, it is also important to know its rules. TDS does not apply to transactions and every individual. For example, mutual fund payment to a resident individual is not subject to TDS, but to a non-resident Indian, the payment is subject to TDS.
When TDS is not deducted
TDS is deducted if you withdraw the Employees Provident Fund Organization ie EPF before 5 years. TDS will not be deducted if your amount is less than Rs 50,000.
Is TDS compulsory for all?
TDS can be avoided by submitting Form 15G or 15H. Form 15H is for senior citizens. It can be deposited even if there is no tax on the total income. Form 15G can be filled by everyone except NRIs. It can be filed when there is nil tax on total income.
TDS return file
According to the Income Tax Department website, you must have a deduction account number before filing TDS returns. Apart from this, you should also have documents related to TDS and a digital signature certificate.
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