Who Is Liable to Deduct and Pay TDS Under Income Tax Act?

Who Is Liable to Deduct and Pay TDS Under Income Tax Act?

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TDS is a form of income tax which is deducted by the payer from the payment made to the payee and then deposited with the government. There are different rates of TDS that are specified under various sections of the income tax act. Depending on the type of payment, the rate at which TDS is to be deducted varies. The person who is liable to deduct and pay the TDS is known as the 'deductor', while the person who receives the payment after the TDS has been deducted is called the 'deductee'.

Individuals who are liable to deduct and pay a TDS are required to file the ITR every year and show the TDS that they have deposited in the ITR. If you have paid more tax than what was deducted, you can claim a refund of the excess amount that was deducted by showing it in your ITR. Once you have filed the ITR, your TDS refund will be processed by the Income Tax Department and may be credited to your bank account within 6 months.

Besides filing the ITR, individuals should also check their TDS refund status on the official website of the income tax department. Moreover, the TDS details that have been deducted and deposited with the government are reflected in a statement called Form 26AS which shows the TDS deductions for a financial year as well as other details of income earned from various sources.

 

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