What Is TDS and TDS Certificate?

Let's look at some common questions about Tax Deducted at Source:

Let's look at some common questions about Tax Deducted at Source:

1. What is TDS?

TDS is Tax Deducted at Source.

2. Where is TDS deducted?

TDS is deducted at the source of payment like salary, rent, fees, etc.

3. Where does the deducted money go?

It goes to the Income Tax department.

4. How much money gets deducted as TDS?

Depends on the income and age of the person.

5. Can you get your money back after it gets deducted?

Yes, you can claim a refund of the deducted amount by filing your ITR at the end of the Financial Year. After processing the ITR, the IT department will verify and refund the money to you.

6. What is a TDS Certificate?

It is a certificate that is given by the employer to the employee. It has details like total income, tax deducted, etc.
TDS is commonly known as Form 16 and Form 16A.

Let’s learn more about TDS Certificate:

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    The person who deducts the TDS amount gives a TDS Certificate to the person whose money was deducted.

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    It has the particulars of payment, the date of TDS and the date of its credit to the IT department.

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    On the basis of the TDS Certificate, you can claim a refund from the department when you file ITR.

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    Form 16 and Form 16A are the TDS Certificates.

Quick Tip

How long should you keep tax receipt receipts?

 

If you file for refund of tax paid, preserve tax receipts and records for 3 years from the date you file ITR or 2 years from the date you pay tax.

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    Points to remember

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    Income Tax Return or ITR is used to declare our earnings to the government.

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    TDS is tax deducted at source like salary, rent etc. Form 16 and 16A gives the details of TDS.

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    You can claim refund of tax deducted if your income is below a certain amount.

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    There are also deductions and exemptions through which you can claim refund of tax deducted.

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    Keep your tax-paid receipts safe for 2 to 3 years.

How long should you keep your acknowledgement receipts?

  • If you file a claim for a refund of the amount you have paid as tax,

 

  • Keep the tax receipts and records safely for 3 years from the date you filed ITR or,

 

  • 2 years from the date you paid the tax

You have learned about all the income tax return documents that you need to keep safe.

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