Who Is Liable to Deduct and Pay TDS Under Income Tax Act?
Who Is Liable to Deduct and Pay TDS Under Income Tax Act?
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Individuals who make certain payments like interest on fixed deposits, income from rent et cetera are obligated to deduct TDS. These individuals are also required to deposit this TDS with the government within a specific time period. This tax is a way to ensure that people do not try to evade taxes.
To do so, the taxpayer deducts a certain amount of tax from the gross payment before making it to the recipient. This is then deposited with the Income Tax department within a specified time period. If the taxpayer does not deposit this tax within the time period, he or she is liable to pay interest at a rate of 1.5% per month on the amount of the undeposited TDS.
Those who are obligated to deduct and pay TDS include people, HUFs, contractors, sub-contractors, banks, etc. All of these individuals are required to register for a TAN (Tax Deduction Account Number) before they can start deducting TDS from the various income sources. It is mandatory for these individuals to mention their TAN in all of the TDS returns, certificates and challan that they submit to the income tax department.
The government website offers an easy-to-use portal that allows people to check if their TDS has been deducted and deposited with the government. A TDS return must be filed by the deductor stating the details of the payments made, the amount of TDS deducted and the taxes paid. This portal is called AIS (All India Service) and can be accessed by visiting the official website of the government. Once the individual has registered, he or she can login to the website and view their TDS details by going to 'My Accounts'.
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