TDS Software, TDS Return Software
Tax Deducted at Source (TDS) is a process launched by Income Tax Department, where person accountable for making particular payments such as wages, commissions, fees, rental income, earnings by interest, are subject to be subtracted a specific proportion of tax before making disbursement in totality to the beneficiary of the payment. The method of TDS is to deduct tax at its source. For many corporate and chartered accountants Adept Infoways has a host of Software. Among them the TDS Software and TDS return Software are the best when the Corporate is filing for taxes for all its employees.
1) What Is TAN and How to get a TAN?
TAN is the term for Tax Deduction Account Number. It is 10 figure alpha numeric entity which is a must for all persons who are accountable for subtracting or gathering tax. Under Section 203A of the Income Tax Act, 1961, it is compulsory to quote Tax Deduction Account Number (TAN) given by the Income Tax Department (ITD) on all TDS returns. The process for requesting for TAN is very easy and can be done comfortably online by filling up Form 49B. People can also refer to the NSDL Site in order to Apply For TAN.
2) What is TDS Certificate?
TDS certificates are given by the the person who is subtracting tax to the person from whose account or salary the tax is deducted. There are primarily two types of TDS certificates given by the deductor.
Form 16: which is given by the company to the staff member integrating details of tax deducted by the company throughout the year, and
Form 16A: which is given in all cases other than wages and salary.
3) When TDS can be subtracted?
In TDS process, tax is to be subtracted at the time of making payment or making the statement for payment ready, which is due, whichever is prior.
4) How much tax should be subtracted from wages?
Company responsible for paying wages is responsible to deduct tax on projected salary at set rate of 15% subject to following:
Limit of Exemption: Tax at source is only to be deducted if the persons salary exceeds basic exemption limit.
Exempt allowances: Taxable salary should be calculated after deducting Allowances such as LTC, HRA, conveyance, travelling exempt as per set limits and other perquisites not forming part of salary .
Other deductions: Other deductions such as deductions under section 80C, 80CCC, 80CCD, 80CCG, 80D, 80DD, 80DDB, 80E, 80EE, etc. should be taken into account before the computation of tax on wage.
5) What is the lowest salary one should have for TDS to be deducted by the employer?
After doing the complete calculation of permissible allowances, taxable perks and deductions under chapter VI-A, if income from wages exceeds a sum of basic exemption limit, then tax has to be subtracted by the employer @ 15% on the amount over and above the basic exemption limit. For instance, the wage of Mr. A arrives at Rs 2,80,000/- assuming that all the allowances, perquisites, and deductions have been taken into consideration, tax @ 15% on Rs 30000/- (2,80,000 – 2,50,000) shall be deducted by the employer.
Hence, requirements of TDS shall come into effect only if minimum salary is above the basic exemption limit.
For TDS Software and TDS Return Software visit Adept Infoways website www.adeptinfoways.com or call us at __________