Difference between ITR and TDS
ITR (Income Tax Return) and TDS (Tax Deducted at Source) are distinct concepts related to income tax in India.
ITR refers to the document filed annually by individuals or entities with the Income Tax Department. It includes the declaration of their income earned during a financial year, deductions claimed, and taxes paid. The filing deadline for ITR is typically 31st July of the subsequent financial year (or 30th September in certain cases). The purpose of ITR is to calculate the tax liability of the filer and claim any refunds, if applicable.
To visit- https://www.mca.gov.in/
On the other hand, TDS represents the tax amount deducted at the source of income by the party responsible for making the payment. This deducted tax is subsequently deposited with the government on a monthly basis. The specific rate of TDS is determined based on the payment nature, as well as the deductor and deductee categories. TDS applies to various types of payments, such as salaries, rent, interest, commission, professional fees, and more.
In summary, ITR is the document filed to declare income and taxes paid during the financial year, while TDS is the tax amount deducted at the source by the payer.
For further details access our website https://vibrantfinserv.com/