Understanding TDS & TDS Return
Tax Deducted at Source/ TDS is a tax deduction system under the Income Tax Act, 1961. In this provision the income tax is deducted at the source and is paid to the government on behalf of the tax payer.
Any individual that pays sum of money in lieu of any product or service must deduct a TDS from the payment and pay it to the government on behalf of the payee. The payment on which TDS must be deducted can be of any nature including:
• Professional fees
• Contract payments and more.
Different type of TD Forms:
• Form 24Q -TDS on Salaries
• Form 26Q – TDS on payments other than Salaries
• Form 27Q – TDS on payments made to Non-Residents
• Form 27EQ – TCS