Tax Deducted at Source (TDS) Return Filing and Payment

Tax Deducted at Source (TDS) is a method of collecting tax at the point of income generation. Under this system, a fixed percentage of certain types of payments—such as salaries, rent, commissions, interest, and professional fees—is deducted by the payer and directly remitted to the government.

The individual or entity responsible for making such payments and deducting TDS is known as the “deductor,” while the person receiving the payment, from whom the tax is deducted, is referred to as the “deductee.” This mechanism ensures a steady inflow of revenue to the government and helps prevent tax evasion by taxing income at its source.

TDS is applicable on a wide range of payments, and the deductor must obtain a valid TAN (Tax Deduction and Collection Account Number) to comply with the filing requirements. Once TDS is deducted, the deductor is obligated to file TDS returns on a quarterly basis within the deadlines prescribed by the Income Tax Department. Timely and accurate filing of these returns is essential to avoid penalties and ensure proper credit of tax to the deductee.

TDS Payment Deposit Due Dates for Govt & Non-government

The due date for depositing TDS is the 7th of next month, (except for the month of March where the due date is the 30th of April)