Business

What is TDS Full Form & Why Should You Know About It?

We all earn hard to live a comfortable life and provide financial security to our families as well. Those who earn pay taxes to the Government of India. With the help of these taxes, the Government provides the citizens with numerous facilities, such as water, electricity, enforcement of law and order, the salary of the Government employees, etc. While paying the taxes, most taxpayers come across a term – TDS. TDS full form is Tax Deduction at Source. Though we have come across this term, numerous taxpayers do not have an in-depth knowledge of TDS, how they can claim their TDS returns, and the benefits of TDS.

In this article, we will look at TDS full form, it’s meaning and a few more things that you should keep in mind.

Let us start by understanding the meaning of TDS.

What is TDS in India?

  1. As mentioned above, TDS full form is Tax Deduction at Source. The Government of India introduced the concept of TDS as a means of tax collection.
  2. The Tax Deducted at Source or TDS is an amount that is reduced when an individual makes a certain payment, such as salary, rent, education fees, etc.
  3. The concept of TDS was introduced as a means to reduce tax evasion in the country.
  4. Tax Deduction at Source or TDS will be deducted if an individual is making any payments under the Income Tax Act, 1961.

Now that you know the TDS full form and its meaning, let us look at a few benefits of TDS.

Benefits of Tax Deducted at Source or TDS Returns

  1. Makes it Easier for the Taxpayer

While taxpayers pay taxes, they often find it difficult to file the Income Tax Returns (ITR) form. The concept of TDS was implemented to reduce such hassles. The TDS returns are automatically deducted after the individual makes a payment. Hence, the taxpayer does not have to face any hassles while claiming the TDS or paying taxes.

  1. TDS Ensures Transparency and Reduces Chances of Tax Evasion

The concept of TDS was introduced to ensure that there are no discrepancies and 100% transparency between the Government and the citizens. Moreover, TDS also ensures that there are no chances of tax evasion as the tax is deducted at the time of making payment.

  1. TDS Provides Revenue to the Government

The TDS that the taxpayers pay is one of the important sources of revenue for the Government. With Tax Deduction at Source, the Government collects the revenue to provide the citizens with facilities, such as electricity, public transport, law and order, etc.

Now that you know the benefits of TDS, let us look at how the taxpayer can claim the Tax Deduction at Source (TDS) online.

How Can the Taxpayer Claim the TDS Returns Online?

The taxpayer can seamlessly claim the TDS online. Here’s how.

  1. If the taxpayer wants to claim the TDS Return online, he or she can visit the Government’s IT Department’s official website and fill in their personal details.
  2. After the taxpayer registers himself on the official website, he or she has to fill in the Income Tax Return (ITR) and put in their TDS return details.
  3. After filling in the TDS details and ITR form, the taxpayer will have to verify themselves through e-verification with the help of personal details such as e-signature, PAN Card, Aadhar card, bank account details, etc.

Let us now look at how the taxpayer can check his or her TDS return status online

How Can the Taxpayer Check for His TDS Return Status Online?

  1. In case the taxpayer wants to check for his TDS return status online, he has to visit the Government’s official income tax website. After opening the website, the taxpayer has to log in using his personal details, such as PAN card details, bank account details, etc.
  2. There is another way that taxpayer can use to check for their TDS return status online. The Government will send a confirmation email to the taxpayer’s registered email address.

If you want to know more about TDS and other tax or investment related information, you can visit Investment Simplified. It is a one-stop destination for all things investment.

Wrapping Up

You now know the TDS full form, its benefits and how to check your TDS status online. The concept of TDS has for sure made it easy and seamless for both the Government and the taxpayer. TDS has made it convenient and hassle-free for the taxpayer to pay the income tax and file for ITR as well. In case you are looking for more information on TDS, you can get in touch with reliable and leading life insurance companies in India. Their insurance experts come with impeccable knowledge and experience and will guide you with your TDS.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button
https://getliker.com/privacy-policy/?preview=true