Is TDS deducted monthly or annually
For salaries and certain other payments, such as rent, professional fees, interest, commission, and contract payments, TDS deducte on a monthly basis. It is at the time of payment or credit of the amount to the payee’s account, whichever is earlier.
Visit https://www.incometax.gov.in
For other types of payments, such as lottery prizes, insurance commission, and payments to non-resident individuals and companies.
TDS generally deducte at the time of payment or credit, whichever is earlier.
In addition, the TDS deducte during the financial year require to deposite to the government on a monthly basis.
By the 7th day of the following month (or 30th April for the month of March), using the prescribed challan form.
Please note that the rules and deadlines mentioned above are subject to potential changes in accordance with the current tax laws and regulations in India.
FAQs:
Is TDS deducted monthly or annually?
TDS is generally deducted at the time of payment, which can occur monthly, quarterly, or annually, depending on the nature of the payment.
What payments are subject to TDS?
TDS applies to various payments like salaries, interest, rent, professional fees, and dividends, among others.
How is TDS calculated?
TDS is calculated as a percentage of the payment amount, which varies based on the type of income and the applicable tax slab.
Who is responsible for deducting TDS?
The person making the payment is responsible for deducting TDS before making the payment to the recipient.
What is the TDS rate for salary payments?
The TDS rate for salary payments is based on the applicable income tax slab of the employee.
Which is determined annually.
Can TDS be claimed as a refund?
Yes, if the total tax deducted is more than your tax liability, you can claim a refund when you file your income tax return.
What happens if TDS is not deducted?
If TDS is not deducted, the deductor may face penalties, and the recipient may have to pay tax on the full amount received.
Is TDS applicable to all income types?
No, TDS is not applicable to all income types. Certain incomes, like agricultural income, are exempt from TDS.
How often do I need to deposit TDS with the government?
TDS must be deposited with the government within a specific time frame.
Usually by the 7th of the following month for most payments.
Can I check my TDS status online?
Yes, you can check your TDS status and the amount deducted using the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal.
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