Tax Deducted at Source
Let’s learn about Tax Deducted at Source
TDS (Tax Deducted at Source) A.Y. 2012-13
According to Indian Income Tax Act there are some specified payments against which tax is to be deducted at the time of payment or at the time of accrual, is called Tax Deducted at Source. Tax is being deducted by the person who pays the money at prescribed rates and deposited with the authorities within stipulated period.
The purpose of deduction of tax at source is to bring more persons in to net of income tax. The rules for income tax deduction at source have been framed in such a manner so that tax evasion can be controlled. However, if the income of any person is not taxable and the tax has been deducted at source, he can claim for refund against the tax deducted at source from income tax department after filing the annual income tax return.
Who is liable to deduct tax at source?
Following persons are liable to deduct the tax at source:
- All Individuals (Including sole-proprietorship concerns) and HUF, who are not covered under tax audit, shall deduct TDS against all the specified payments except.
- Interest Paid
- Payment to contractors and sub-contractors.
- Commission paid
- Rent Paid
- Professional fees and technical fees paid
- Individual/HUF who are covered under tax audit, will deduct tax at source on all specified payments.
- Partnership firms and Companies and persons other than individuals and HUF, will deduct tax at source on all specified payments.
TDS & TCS Rates for the Financial Year 2012-13
Form 24Q: Quarterly statement of deduction of tax under sub-section (3) of section 200 of the Income-tax Act, 1961 in respect of salary for the quarter ended June/September/December/March.
Form 26Q: Quarterly statement of deduction of tax under sub-section (3) of section 200 of the Income-tax Act, 1961 in respect of payments other than Salary for the quarter ended June/September/December/March
Form No. 27Q: Quarterly statement of deduction of tax under sub-section (3) of section 200 of I.T. Act, 1961 in respect of payments other than Salary made to non-residents for the quarter ended June/September/December/March
FORM NO. 27EQ: Quarterly statement of Tax Collection at Source under section 206C of Income-tax Act, 1961 for the quarter ended June/September/December/March
