Person Responsible to Deduct Tax: All assesses who are employers.
Category of Payee: Employees having taxable salary, including non-residential employees.
Rate of Deduction of Tax: Rates of as applicable to the individuals.
Time For Deduction of Tax: At the time of payment i.e., as and when salary is paid and not when it is due.
Time for Deposit of TDS:
- In case of deduction by or on behalf of government, on the same day.
- In case of others, within one week from the last day of the month in which deduction was made. The assessing officer may in special cases, with the approval of JCIT, permit the payment of TDS quarterly i.e., 15th June, 15th Sept., 15th Dec., and 15th March.
Relief u/s 89: Employers should allow relief u/s 89 on arrears of salary or gratuity payments on filing a declaration by the employee in Form 10E
Certificate of TDS and Time Limit:
- Form 16- within 1 month from the end of financial year of such deduction.
- Form 16AA in case Gross salary does not exceed Rs.1.5 Lakhs and the assessee does not have income from profit & gains of business or profession or capital gain.
Deduction of Tax at Lower Rate or Non-Deduction of Tax:
- Employee shall make an application in Form No.13 to assessing officer.
- The assessing officer shall issue certificate in plain paper. The same is to be furnished to the employer.
