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TDS Notes
TDS Notes
Types of TDS
Here are some of the income sources that qualify for TDS:
o Salary
o Amount under LIC
o Bank Interest
o Brokerage or Commission
o Commission payments
o Compensation on acquiring immovable property
o Contractor payments
o Deemed Dividend
o Insurance Commission
o Interest apart from interest on securities
o Interest on securities
o Payment of rent
o Remuneration paid to the director of a company, etc
o Transfer of immovable property.
o Winning from games like a crossword puzzle, card, lottery, etc.
Form 24Q.
It is used for preparing eTDS returns for the TDS deducted on salary
under Section 192 of the Income Tax Act, 1961.
It has to be submitted on a quarterly basis by the deductor.
It contains details like salaries paid and the TDS deducted of the
employees by the employer.
What is a TDS Certificate?
TDS Certificates are of two types: Form 16 and Form 16A. Under Section
203 of the Income Tax Act, 1961, a certificate must be provided to the
deductee showing the amount that has been subtracted as tax. The
deductor is liable to provide this form to the deductee.
Form 16
Have details of the amount of TDS.
Should be furnished to the employee by 15th June after the end of the
financial year
Even the banks deducting tax at the time of payment of pension are
required to issue such certificates.
The certificate in Form 16 shall specify the following: