Basics and Registration under TDS

Taxation: TDS (Tax Duducted at Source)

Basics and Registration under TDS

Taxation

TDS

Meaning- The concept of TDS (Tax Deducted at Source) was introduced with an aim to collect tax from the very source of income.

As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.

The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26ASor TDS certificate issued by the deductor.

Sections of TDS deduction

Payments such as salaries, commission, professional fees, interest earned, rent etc. are subject to TDS deduction. Based on the type of income and amount of income earned, TDS is paid at various rates. Thus, different kinds of income has different TDS rates and the tax is paid on the extra amount earned after a certain maximum threshold limit is attained. The rate at which TDS is paid varies from 1 per cent to 30 per cent, depending on the income taxed. Following is the list of the important sections which are applicable in our day to day lives.

Registration for TDS

Register on the e-Filing Portal: For Tax Deductor and Collector.

Step-by-Step Guide:                                                    
Step 1: Go to the e-Filing portal (Link) homepage, click Register.

Step 2: Click others and select the Category as Tax Deductor and Collector.

Step 3: Enter the TAN of the Organization and click Validate.

Step 4a: If TAN is available in the database, registered with TRACES and the registration request is not raised already and pending for approval:

·    Click Continue to view the Basic Details page.

·    The basic details are pre-filled. Click Continue.

Step 4b: If TAN is available in the database, which is not registered with TRACES and whose registration request is not raised and is pending for approval:

 ·    Click Continue to view the TRACES page.

·    Click Register with e-Filing on TRACES to view the Basic Details page

·    Enter the basic details as required and click Continue.

Note: You must register on TRACES. From there, you will be taken to the e-Filing

registration page on clicking Register with e-Filing.

Step 4c: If TAN is available in the database, whose registration request is raised and is pending for approval:

An error message is displayed, and you can choose to withdraw the registration process.

Step 5: Enter the details of the person making payments or collecting tax and click Continue.

Step 6: Provide the contact details including Primary Mobile Number, email ID and Postal Address. Click Continue.

Step 7: Two separate OTPs are sent to your primary mobile number and email ID as entered in Step 6. Enter the separate 6-digit OTPs and click Continue.

Note:

·   OTP will be valid for 15 minutes only.

·   You have 3 attempts to enter the correct OTP.

·   The OTP expiry countdown timer on screen tells you when the OTP will

   expire.

·   On clicking Resend OTP, a new OTP will be generated and sent.

Step 8: On the Verify Details page, review the details provided, edit the details if necessary, and then click Confirm.

Step 9: On the Set Password page, enter your desired password in the Set Password and Confirm Password textboxes, set your personalized message, and click Register.

Note:

Do not click Refresh or Back.

While entering your new password, be careful of the password policy:

1. It should be at least 8 characters and at most 14characters.

2. It should include both uppercase & lowercase letters.

3. It should contain a number.

4. It should have a special character (e.g. @#$%).

A success message is displayed along with the transaction ID. Please keep a note of the Transaction ID for future reference. The registration process is complete upon receiving approval from the competent authority.