Duties of TDS Deductors

Deduct Tax at Correct Rate and deposit in Government Account-Sec 200

Every person responsible for deducting tax at source shall at the time of payment or credit of income, whichever is earlier, verify whether the payment being made is to be subject to deduction of tax at source. If it is so, he must deduct such tax as per the prescribed rates. Further he is required to deposit such tax deducted in the Central Government Account within the prescribed time as specified in Rule 30.

Issue a TDS certificate

Further, such person is required to issue a certificate of tax deduction at source u/s 203 to the person from whose income the TDS has been done, in the prescribed proforma i.e. Form No.16A within prescribed time(as discussed earlier).

File Prescribed Return/Quarterly Statement

A return of TDS is a comprehensive statement containing details of payments made and taxes deducted thereon along with other prescribed details. For deductions made prior to 01.04.2005 earlier every deductor was required as per the provisions of Section 206 (read with Rule 36A and 37) to prepare and deliver an annual return, of tax deducted at source. However w.e.f. 01.04.2005 there is no requirement to file annual returns and instead Quarterly statements of TDS are to be submitted in form 26Q by the deductors.

2 thoughts on “Duties of TDS Deductors

  1. Sir, I am going to prepare the e-tds return for the Q1 of 2015-16.

    I want to do what to be filled up in the regular return 26Q1 against the transporters (“T”), whose TDS was not deducted?

    Thank you.

    1. YOU HAVE TO WRITE “T” IN THE COL. NAMELY “REASON FOR NO DEDUCTION OR LOW DEDUCTION” AT DEDUCTEE SHEET IN FORM 26Q1.

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