- The first step is to calculate the TDS liability of client and advice accordingly.
- Next step is to pay TDS monthly.
TDS Return In India
Tax Deducted at Source or TDS is a type of advance tax which is deducted from the earnings of an individual or an organization before the money is actually credited into that entity’s account. The government is able to generate revenues by implementing the provisions of TDS on the earnings of individuals as well as businesses.
“Tax Deducted at Source” implies that the payee or the employer deducts the tax before making a payment to the receiver. Tax Deducted at Source is applicable on income earned regularly and also on the income earned occasionally or irregularly. Thus, TDS is applicable on various incomes, including, but not limited to Salary, Commission, Rent, Professional Fees and Interest.The deductor is required to deposit the amount deducted with the Income Tax Department by 07th of following month.
TDS return filing is compulsory for all the assesses who fall under the tax slab as prescribed by the Income Tax Department. It is compulsory to e-file the TDS returns and it can be done through the official Income Tax e-filing portal.