Overview of TDS Return Filing

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TDS stands for Tax Deducted at Source. It is the tax which is collected by the Government when a transaction takes place. The tax amount is deducted either at the time when the money is credited in the account of the payee or when the payment takes place, whichever happens earlier.

The main aim of TDS is to collect tax from every source of Income. As per the provisions of the  IncomeTax Act 1961, a tax-deductor shall furnish a periodical TDS statement (Quarterly) containing the particulars of deduction of tax formed during the quarter by the determined due date. The Department of Income-tax decides the rate at which the TDS will be deducted. It is the responsibility of the Deductor to deduct the TDS before making the payment and deposit it to the Government.

Here, the entity/ individual who deducts the said amount is termed as Deductor, and the entity/ individual whose tax is beingdeducted is termed as Deductee. Also, in the case of Individuals and Businesses, there are various payments.