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Tax Deducted at Source (TDS): You must have heard many times about TDS i.e. Tax Deducted at Source, but you hardly ever tried to know about it. When is TDS deducted? Does this apply to all employees? What is the percentage of TDS deducted from salary and what is the procedure for its refund? Today, we are going to give you detailed answers to all such questions, so that you have important information about the amount deducted from your income.
1. What is TDS?
TDS is just another form of income tax. TDS is applicable on different sources of income. For example, the government collects tax through TDS on the interest received on salary, FD or any investment. However, TDS is not applicable to every source of income. The Income Tax Department has set some rules for this.
2. To whom TDS is applicable?
Section 192 to 194L of the Income Tax Act shares the list of sources of income subject to TDS. It states when TDS is deducted. TDS is applicable on payment of salary income, premature withdrawal of PF, interest on FD, maturity of insurance company, amount received in lottery or jackpot won on sports like horse race and benefits received on certain government schemes.
3. What is the percentage of TDS deducted from salary?
TDS rates start from one per cent to 30 per cent. If we talk about TDS only on salary, then according to the income slab, TDS of 10 percent is levied on the total income of the person. At the same time, TDS up to 10 percent has to be paid on maturity of FD. If the customer has not given his PAN card information to the bank, 20 percent TDS is charged.
4. What is the procedure for TDS refund?
The Income Tax Department has also given the facility of TDS refund to the people. To take back the TDS collected, you need to file income tax return and submit Form 15G to the bank. After this, the bank will give its details to the Income Tax Department and the Income Tax Department will check your status. In this way, you can get the amount deducted in TDS after six months. You can also see its information online.
5. What information related to TDS must be there?
If a person’s TDS is being deducted, then it should be necessary to know about some special things. Like- what is the rate of TDS deducted in the respective financial year. It is important to be aware of the last date for filing TDS or ITR, the last date for TDS payment and the conditions for filing TDS returns.
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