Is TDS tedious?

Is TDS tedious?

Minakshi Shetty
Mumbai, September 30

Recently, Traders Association of Information Technology (TAIT) held a meeting with the TDS income tax department to discuss about the importance of TDS. In a simple language TDS stands for tax deducted at source. It is a tax that is deducted from the earning of the employee by the employer in other words it is a tax that is deducted at source. It is deducted as per the finance act of that year.

“It was an extremely important conference for our members and partners, and they had turned up in large numbers to attend. I think it's the high time
to be open with the government so that our problems should be sorted out. We were educated about the benefits of TDS on various topics like no refund time, how to rectify mistakes, we also came to know that huge amount of capital is blocked in the form of TDS, while buying software licenses,” shared Champak Gujrar from Maxtone. It is noted that while some TDS rates are specified in the individual section which deal with the tax treatment of the particular stream of income, some rates are also included as part of a separate schedule. Sometimes it does happen that these rates get tampered and modified every year.

This in turn is resulted in so much chaos and confusion, that sometimes those who have to apply TDS, do not have a clue about what rate to use. Thus, the tax payer is left in a soup. According to Rushab Shah, Director, TAIT, “It was more of a one-to-one session with the TDS members and we sorted out the issues and queries. They also shared a presentation on TDS which will be helpful in the long run.” TDS should not be confused with the income tax return because it is completely different from income tax. Deduction in tax is useful to reduce the income tax and provide tax relief.

“The TDS members also spoke about the form 26AS, which is a compact tax statement issued to the PAN holders by the Income Tax Department. Yes, there are many issues and points to be remembered to go through the TDS process but it will be sorted in the future. We always make an effort to educate our members on laws in our country and government is keen that TDS should be deducted if only it is within the time frame,” added Girish Rathod, VP, TAIT.