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TAX DEDUCTION AT SOURCE (TDS) Information to help you with TDS Department of Revenue & Customs (HQ) Ministry of Finance Thimphu: Bhutan Table of Contents INTRODUCTION 4 PART I 1. 1.1 1.2 1.3 1.4 OVERVIEW

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What is tax deduction at source?

Tax deduction at source is a means of collecting income tax in India, under the Income Tax Act of 1961.

Who is required to file tax deduction at source?

Any person or entity making specified payments such as salary, commission, rent, etc. is required to deduct tax at source.

How to fill out tax deduction at source?

To fill out tax deduction at source, one must obtain a TAN (Tax Deduction and Collection Account Number) and submit TDS returns using Form 26Q, 24Q, 27Q, etc.

What is the purpose of tax deduction at source?

The purpose of tax deduction at source is to ensure a regular inflow of income tax to the government throughout the year, rather than in a lump sum at the end.

What information must be reported on tax deduction at source?

Information such as the deductor and deductee details, nature of payment, amount paid, TDS rate, etc., must be reported on tax deduction at source.

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