TDS stands for tax deducted at source from corporate as well as non corporate. TDS is a way of collection of tax and is kind of pay as you earn concept. In case of TDS challan certain amount of pay is deducted at the time of crediting and the amount deducted depends upon nature of payment. The amount deducted goes in the pocket of government. In this way the payment maker shares responsibility with the government in tax fair play scenario. This is also known as, withholding tax in different countries. In this way by the help of TDS government can have regular cash flow.
Precisely the method goes as, all the tax deducted at source related to companies will come under challan No ITNS 281 since the TDS challan is related to corporate. In case of tax deducted at source pertaining to non corporate, a different challan is filed, challan number related to non corporate is “ITNS NO.281” and the tick box 0021 since it’s related to non corporate. The nature of payment codes can be found behind challan number ITNS 281.
e-TDS challan is TDS return of Income Tax Act under the section 206 (the form numbers being 24, 26 or 27) which is an online method for payment on the basis of given data structure.
The question arising in your mind could be who file e-TDS needs return. According to Income Tax Act of 1961 every government and corporate collectors and deductors need to file TDS on electronic media. While as far as collectors or deductors other than government and companies can file TDS either in person or in electronic form.
May 15th, 2012 by Slab | Comments (1)