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
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