TDS

TDS stands for “Tax Deducted at Source”. The concept of TDS was introduced with an aim to collect tax from the very source of income.

 As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.

TDS is applicable on various incomes such as salaries, interest received, commission received, dividends, etc.

Types of TDS Returns:

1. Form 24Q

Statement for tax deducted at source from salaries   

2. Form 26Q

Statement for tax deducted at source on all payments other than salaries                           

3. Form 27Q

Statement for tax deduction on income received from interest, dividends, or any other sum payable to non residents                            

4. Form 27EQ

Statement of collection of tax at source.