Benefits of Tax Deduction at Source (TDS)

[Selva-Star]

I Am carrier Consultant. I am taking Rs. 9000 per month but Company deducts 10.30% amount as TDS per month from it . My fees is less than 1, 50,000 then how can company deduct TDS form amount ?. And also brief me what is exact use of TDS? Where this amount goes and for what? Can We Get Credit Of Tax Without Having TDS Certificate? And specially give me idea of advantage or benefits of TDS.

[G-MAT]

OK, first I will tell you that TDS is stands for Tax Deduction at Source. It specially related to government then also with trustees of provident fund, local authorities, associations , universities and cooperative societies. They deduct some amount for Tax Deduction at Source on salary or all other incomes. For TDS you can take Form 27A, for verification of TDS you take form 27B, for using internet you can get form e-TCS, Form 24Q, Form 26Q and Form 27EQ.This all amount goes to government of that country and it used for providing different types of service to the tax payers.

[Job-finder]

As you say you are carrier consultant and talking fees Rs. 9000 per month so I would like to tell you that if you are paying one single payment of Rs.20,000 or you are paying some amount which is the more than 50,000 in year then it will deduct TDS under section 194J .The percentage is 10.30 on below 10 lacks. So as per rule deduction of TDS is right. But don’t worry you can get your that deducted money, for that you have to fill that form 16A. and as asked about benefits so I would like to tell you that keep paying TDS as per rules because its beneficial for you and your country because the amount which goes to the government is used for providing service to our citizen.

[Engg.]

I will give you rough idea, that TDS is the amount which deduct from any income of salaried or employed person. As per income tax act it may not same for per month it can fluctuate as per your income. If you want to get back your deducted money then you can get from internet you have to log in on website and fill the form of e-TDS.TDS consisting two parties one is who pays money and second who receives money . in this case both get the some advantages.

[Recruiter]

As i search on web sites there are lots of benefit we can take by paying TDS. such as Pension after retirement as you are paying TDS then some amount is used to pay you after your retirement. You can get medical facilities on hospitals which runs or functioned by government .as per the act 1972 you can gratuity , it also use full on provident fund amount which you pay from your salary .you can get some of interest rate on that amount as per the government rule.

[Zimic]

As you want to know benefits and transaction of TDS then you can get all information on government official site , as you asked about the TDS benefit without certificate is possible. When you are going to pay TDS then they didn’t required any certificate for that now days this facility is available. The procedure is completed by the income tax department by checking your return file nit by the TDS certificate. You also need PAN number for the procedure and for that you need PAN card.