The concept of Tax Deducted at Source (TDS) was introduced to enable the direct collection of taxes from the source of income. According to this concept, that a person (the deductor) who is obligated to make a payment of a particular kind to another person (the deductee) is required to deduct the applicable tax amount from the payment at its source and submit it to the Central Government's account.

You can now request a TDS refund for the additional amount deducted if you pay taxes at a rate of 5%. In a similar vein, you can request a TDS refund for any excess TDS that was deducted from your pay because your employer did not receive your 80C investment proofs or rent receipts for your house rent allowance.

Even if a person's income is below the basic exemption limit, the government has now made filing income tax returns mandatory if the person's total TDS/TCS during the financial year is ₹25,000 or more.

The deadline for the government to deposit tax withheld is April 7. The tax must be deposited by April 30th for all other deductors.

The deductors are required to submit the TDS returns on time. TDS return filing can be done online. The payee's Form 26AS will reflect the information once the TDS returns have been electronically submitted.