TDS section
When you would be reading about TDS section, then you would have come across TAN which is Tax Deduction Account Number. The tax deducting person or company requires this number. It is a ten-digit alphanumeric number TAN is mandatory and is present on all TDS returns. One can easily get TAN by applying for it online and filling Form 49B.
How does one get to know how much TDS deduction has been done and whether it has been credited?
The steps to know to abut tax deduction :
Log on to https://www.incometaxindiaefiling.gov.in/ and click on “Register Yourself.”
Now you need to enter the PAN card details and generate a password
After logging in successfully, you need to click on “View Tax Credit Statement (26 AS)”
After clicking on this link, you will be directed to another portal called TRACES (TDS Reconciliation Analysis and Correction Enabling System). Here you will get all the details on TDS deducted, advance tax paid etc.
26AS- It is the statement of all the TDS deducted by others. There is a probability that of TDS has been deducted but it is not reflecting on the tax credit statement; this may be because the deductor didn’t file the return. Hence, you must get the TDS certificate as proof that the tax has been deducted.
What is the TDS certificate?
This certificate is issued by the individual or company deducting the tax to the one whose tax has been deducted. there are two types of TDS certificates :
- Form 16: This is issued by the employer to the employee. It contains details of tax deducted of the entire financial year.
- Form 16A: This certificate is issued in all cases other than salary. which is issued
Let’s take an example here. Mr X is working in a company and tax deduction is 15%. Now the company will provide Mr.X Form 16, which will have all the details about the deducted tax and amount of salary.
In case, Mr X is working as a profession and is receiving professional fees from an organization; then he will get Form 16 A for the tax deducted.
Advantages of TDS
- It reduces the probability of tax evasion, as the tax is deducted at source
- Money steadily flows to the government
- Tax collection gets widened as the TDS is paid in some form or the other
- Since TDS gest deducted automatically, the process becomes simpler for the taxpayer.
With this piece of information, it would be easy for you to understand TDS meaning and importance.