TDS Kya Hai Hindi Me Explained | TDS Claim Process | Tax Deducted at Source In Income Tax

Summary

The video explains the concept of Tax Deducted at Source (TDS) and its importance in India's taxation system. It covers how TDS is deducted from payments, the process of claiming back the deducted tax through Income Tax Returns (ITR), and the significance of providing accurate details like PAN numbers. The video also discusses various tax rates, including the standard 10% rate for professionals, and emphasizes the need for individuals to file their taxes to claim back any excess TDS deducted. The importance of understanding TDS to avoid confusion and ensure correct tax compliance is also highlighted.

Takeaways

• 😀 TDS (Tax Deducted at Source) is a tax mechanism where the payer deducts tax before sending the amount to the recipient.
• 😀 TDS is applied at the source, meaning tax is deducted by the company before you receive your money.
• 😀 If your income falls within taxable limits, TDS is deducted from payments like salary or any company transactions.
• 😀 TDS helps the government collect taxes in advance, especially from those who might not voluntarily pay taxes.
• 😀 If TDS is deducted and you don't claim it, the money stays with the government unless you file your Income Tax Return (ITR).
• 😀 Filing your ITR is essential if you want to claim back the TDS deducted and avoid tax liabilities later.
• 😀 The TDS amount can be claimed back if your actual tax liability is lower than the TDS deducted through your ITR.
• 😀 TDS is deducted at different rates depending on the type of transaction or payment. Common rates are 2%, 5%, or 10%.
• 😀 Not providing a PAN number when receiving payments can lead to a higher TDS deduction rate (20%) instead of the usual 10%.
• 😀 The government collects TDS in advance to ensure timely tax payments, reducing the risk of non-payment or tax evasion.
• 😀 To claim back the TDS, you need to provide complete financial details while filing your ITR, including income and tax liabilities.

Q & A

What does TDS stand for?

TDS stands for 'Tax Deducted at Source'. It is the tax deducted by the payer at the source of the payment before it reaches the recipient.

Why is TDS deducted?

TDS is deducted to ensure tax collection at the point of payment and to minimize tax evasion. It helps the government collect taxes from individuals who may not otherwise file taxes.

How is TDS deducted from payments?

TDS is deducted based on the amount being paid and the applicable tax rate, which is often determined by the individual's income or the type of payment being made.

What happens if TDS is deducted but it exceeds my tax liability?

If TDS deducted exceeds your tax liability, you can claim a refund by filing an Income Tax Return (ITR), where the government will return the excess amount.

What role does PAN play in TDS deductions?

PAN (Permanent Account Number) is essential for TDS deductions. If you don't provide your PAN, a higher deduction rate (e.g., 20%) may apply instead of the standard rate (e.g., 10%).

Can TDS be claimed back if I don't file ITR?

No, you cannot claim back the TDS amount unless you file your ITR. Filing ITR is necessary to claim any TDS refunds or adjustments.

What is the process of claiming TDS after filing ITR?

Once you file your ITR, the government will review the details, and any excess TDS deducted will be refunded to you, provided you are eligible for a refund.

What happens if I don't file ITR and do not claim my TDS?

If you don't file ITR, you cannot claim the deducted TDS, and it will remain with the government.

How can I check how much TDS was deducted from my payments?

You can check the TDS deducted by accessing the TDS report for each financial year on the official Income Tax website after filing your ITR.

What is the usual percentage of TDS deduction?

The typical TDS deduction rate is 10%, but it can vary depending on factors like the type of payment and whether a PAN is provided. In the absence of PAN, the rate may go up to 20%.