TDS Stands for Tax Deducted at Source and this basically means that the tax that an individual is liable to pay had been deducted at the source itself. This is useful particularly for the government as it helps them in reducing the tax evasion in India. This also helps the taxpayer by reducing the burden of tax payment at end of the year. It is a win-win situation for everyone.
It should be noted that the TDS is applicable on various sources of income and in addition to this, the slabs for TDS varies from one source to another. Also if a person wants a tax rebate then he can choose to claim tax rebate later by claiming a tax refund and submitting different document proofs of investment and expense.
If you are a deductee i.e. if you are receiving income after TDS then you can also get the TDS Certificate Online and in addition to this, you can get the details of consolidated tax payments in Form 26AS.
Form 26AS and TDS
One thing that you need to understand is that the TDS certificate will be issued to you by the deductor. The deductor is the party who is deducting your TDS from the income. The government can only issue you Form 26AS which can be used to match up with the TDS certificate and ensure that the correct amount of tax has been submitted on your behalf.
As mentioned earlier, the TDS differs from one source to another and the table listed below represents the TDS that is applicable to your earnings.
Interest Slab for Various Types of Income
|Type of Income||TDS Rates Applicable|
|Taxable Part of PF||10 %|
|Interest on Security||10 %|
|Salary||As per the tax slab|
|Interest on FD||10 %|
|Winning Lottery||30 %|
|Winning Horse Race||30 %|
|Life Insurance which doesn’t falls under 10 D||1% if you receive over Rs 1 Lakh|
|Commission from selling insurance||5 %|
|Commission in form of brokerage||5 % if the amount is over Rs 15,000|
|Payment of rent (Individual or HUF)||5% if rent is over Rs 50,000|
By referring to the table listed above, you will get an idea of the amount of tax that you need to pay. Moreover, there is a threshold of every category. For example, the bank can deduct TDS on interest income if you are earning over Rs 10,000 as interest in a financial year. The TDS will only be deducted on the amount that is above and over Rs 10,000
Stopping TDS Payments
A lot of people have a question if they can stop the TDS Payment and make the payment of tax only at the end of the year as per the income tax that is applicable to them. Well, the answer to this question is that Yes, it is possible to stop the TDS Payment.
To do so, you need to fill and submit Form 15G or 15H and this form needs to be submitted to deductor. Once that is done, the TDS will be stopped and you can pay the accumulated tax at end of the assessment year.
Downloading TDS Certificate Online
As mentioned earlier, the TDS certificate can only be obtained from Deductor. So there are cases when the deductor might not be able to provide you with a TDS Certificate online. Most of the banks and non-banking financial institute offers TDS Certificate Online. Here is how you can download the same
- To download the TDS Certificate, you can visit the website for the Deductor. In your case, it can be Bank, NBFC, Financial Investment Firm or anything relevant.
- Login to your account and visit the Services Section. Once you click on Services, you will notice an option for Downloads.
- Click on Downloads and you can choose the TDS Certificate. The digital copy will be downloaded on your system which can be used by you as per the need.
This TDS Certificate can be used as a proof of tax payment while income tax assessment or while claiming a refund. Apart from this, it should be noted that you notice any discrepancy in the TDS Certificate and the amount deducted then you must contact the deductor immediately. You would also need to reconcile the Form 26AS with the TDS Certificate once you have Form 26AS.