The Department Is More And More Depending Upon Tcs, And Tds To Collect The Taxes In Advance From The Duductors, Payers Of Income. This Step Will Reduce Tax Avoidance By The Income Earners. Also This Step Is Acting As Safety Against Loss Of Revenue. Tds, Tcs Constitutes More Than 40%Of Total Tax Collections Of The Department.
In This Regard, The Department Has Notified Various Rules, Procedural Obligations To Be Followed B Ybthe Payers, Deductior For The Purpose Of Collection, Deduction And Payment To The Department On Behalf Of The Income Earner, Filing Of Returns With The Department And Issue Of Certificates To The Deductee, Payees Who Can Claim Credit For The Tax Deducted, Collected From The Payments To Be Made To Him.
Now It Is Mandatory For Every Business Organisation To Deduct The Taxes And Deposit The Same To Claim Some Of The Expenditures Incurred To Carry On The Business Operations. In Other Words Unless Tds Is Made, The Expdneiture Like Interest, Royalty, Rent, Technical Fees Etc. [U/S. 40(A)(Ia)]. However The Tax Deducted In March, 2011 Can Be Deposited Before The Due Date For Filing The Return Of Income.
With This The Follwing Compliances Are Mandactory For The Deductors, Payers As Far As Tds Is Concerned.
- Correct Amount Of Deduction, Collection Of Tax.
- Depositing The Same With The Department,
- Issue Of Certificate Of Tax Deduction To Deducgtee, Payee.
- E-Filing Tds Returns.
- E-Payment Is Required In All Tax Audit, Corporate Assessees.
