What is TDS?
TDS means Tax Deducted at Source. It
is the amount withheld from payments of various kinds
such as salary, contract payment, commission etc. This
withheld amount can be adjusted against your tax due.
Is TDS relevant for me as a
Payments may be made to you after TDS.
You can adjust this against your final tax liability.
You are also required to effect TDS while making
business payments. Failure to do so will result in the
entire of expenditure being disallowed as your
business expenditure and taxed as income.
I have deducted tax from payments
disbursed but used the same for some urgent financial
needs. What are the consequences?
It is an offence to misuse the tax
deducted at source. It should have been remitted to
government account within the time allowed. The
failure attracts tax, interest, penalty and also
rigorous imprisonment up to seven years
What can I do if I am unable to get
the TDS certificate [form-16 or 16A]?
It is the duty of every person
deducting tax to issue TDS certificate. In spite of
your asking if you are denied the certificate then
there is a chance that the tax deducted has not been
deposited by the deductor to the government account.
Please inform the department [PRO or TDS section]
which will then do the needful.
Can I use PAN to pay the TDS deducted
into government account?
No. You are required to take a
separate Tax Deduction Account Number [TAN] by making
an application in form 49B with the Tin facilitation
center of NSDL.
In case the deductee comes back
stating that the original TDS certificate is lost,
whether a duplicate certificate can be issued?
Yes. The deductor will have to issue
the certificate in a plain paper giving necessary
details of deduction and remittance.