What is TDS (Tax Deducted at Source)?
- TDS (Tax Deducted at Source)
- TDS is the deduction of income tax at the source of payment by the payer, deposited to the government on behalf of the payee — covering salaries, contractor payments, rent, and professional fees.
Common TDS Sections
194C: Payments to contractors (1% for individuals, 2% for companies, threshold ₹30,000 per payment or ₹1L cumulative). 194J: Professional/technical fees (10%, threshold ₹30,000). 192: Salary (as per income tax slab). 194Q: Purchase of goods (0.1%, above ₹50L from a single buyer). 26Q: Quarterly TDS return for non-salary.
TDS Compliance Timeline
TDS deducted must be deposited to the government by 7th of the following month (30th April for March). Quarterly returns (24Q for salary, 26Q for others) are filed in July, October, January, and May. Form 16/16A (TDS certificates) are issued to deductees within 15 days of return filing.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
Related Terms
Implement ERPNext for Your Business
Expert ERPNext implementation, customisation, and support for Indian businesses.