Ashoknegidi
Training Operations - Csr
Bargamen
Dy. Manager Taxation
+1 Other

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Dear Seniors,
Can you anybody teach me "The process of TDS".
1. Why we are deducting the TDS?
2. How & Where need to submit the TDS cliams?,
3. After receiving the Form 16 of TDS, how and where can get the same money?

In simple words. Everyone is liable to pay tax on income. Suppose if I am m giving some income to you then it is your income but my expenses.
At the end of the year you will pay taxes on income which is paid by me.
But Govt. need your tax advance so that govt. can generate interest income from it or may by any reason.
For that purpose govt. fix duty employer or payer (as the case may be) that paid tax on payee behalf.
So as example I will pay your taxes by deduction your payment by taxes. That is called TDS

Now Form 16 has totally changed as per online procedure. You may need to understand or read in detail for the following topics.
Persons Liable to Deduct Tax at Source (TDS)
Specified Payments on Which TDS is to be Deducted
Time Limit to Deposit TDS & Issue TDS Certificate
What is Form 16 (TDS Certificate)?

Basically Income Tax paid by person who earned Income, but there is not possible to the Revenue Authority to Track all person who is earned Income, come out of this difficulties , Revenue department introduce mechanism of collecting Income Tax In form of Tax deducted at sources. A company ,and in case of other who is liable get Tax Audit under Income Tax Ac,if certain defined nature of Payment made to person and such amount is excess of Specified by various provisions of Income Tax Act. and deposit same with revenue department. TDS deducted by assessee should be deposit with revenue department within 7th of next month in which deducted. if such amount not deposited , there is a provision of Interest on amount of tds deducted @ 1.5 % per moth from which TDS deducted For example if A company Deduct TDS Rs. 100/- as on 29 September, 2015 it should be deposit in Revenue department Bank Accounts on or before 7th October, 2015. suppose A company deposit Amount as on 10th October,2015, in that situation A company deposit Rs, 100/- for TDS and Rs Interest Rs. 3/- in form of Interest for Two month for September and october,2015.
In form 16 and Form 16A is proof of payment of TDS in that person from which TDS is deducted , now a days Form 16 and Form 16A is to be download from traces. it is a proof that your tds is deducted and deposit with revenue department.

Thanks
Manoj Kumar
mail id
bargamen1971@gmail.com

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