TDS

For a quick and efficient collection of taxes, the Income-tax Act has incorporated a system of deduction of tax at the point of generation of income. This system is called “Tax Deducted at Source” commonly known as TDS.

Tax deducted at source shall be deposited to the credit of Central Government in accordance with the following provisions:

a) at the rate specified in the relevant provision of this Act; or
b) at the rate or rates in force; or
c) at a rate of 20%.

Tax Deduction Account Number is a 10-digit alphanumeric number issued by the Income-tax Department (hereinafter referred to as ‘TAN’).

Person liable to furnish TDS statement
Every person responsible for deduction of tax shall furnish quarterly statements in respect thereof.