TDS Registration (TAN)
TAN Registration in India
Tax Deducted at Source or 'TDS' is the tax, which either a company or individual collects in against of a payment made of value more than the income tax threshold amount. Here, one who makes payment for his/her/its purchase collects the tax and is called ‘Deductor’ while, one receiving such payment with TDS deduction is said to be ‘Deductee’. TDS should be deposited by the deductor in the IT Department’s Account and a TDS Return is usually filed quarterly (except, for certain cases, such as, payment for immovable property, etc. where one time Return is filed) in specific due date. Like income tax, failure of on-time TDS transfer and its filing to IT Department of India is a punishable legal offence and thus should not be practiced intentionally.
Note: TDS certificate, such as Form 16/16A/16B should be issued after TDS deduction to the deductee.
INCOME SOURCES WHERE TDS IS LEVIED
These payments can be charged under TDS deduction, in case exceeds the income threshold limit:
- Salary
- Award Value for winning lottery, gambling, etc.
- Bank Interest
- Interest on securities
- Insurance payment
- Deemed dividend
- Commission
- Payment on immovable property
- Payment of rent
Documentation for Filing TDS Return
These documents are required during TDS Return Filing:
- Valid TAN (Tax Deduction and Collection Account Number)
- Valid PAN linked to Aadhaar
- Valid TDS Statements, TDS Certificates, TDS Challan, etc.
- Valid proofs of Interest income/Property purchase/Capital gains, etc.
- Bank Account Details
PROVISION OF TDS EXEMPTION:
In some cases, as mentioned below specific TDS rule/exemption is allowed:
- An individual from HUF/Individual who does not need to maintain Books of Accounts of income is not liable to deposit TDS for his/her payment.
- In case, excess TDS is deducted the taxpayer can claim for refund by submitting correct proofs.