An employer will deduct tax deducted at source (TDS) from the salary of a person whose income is above the threshold limit. The amount is deposited with the tax authorities by the employer directly.
If the company fails to deposit the amount, it has to bear a compulsory fine of Rs 200 per day for delay in filling TDS.
Banks also deduct TDS if interest earned on the fixed deposit is above Rs 10,000. Some banks are sending e interest certificate for the deductions made. Soon salaried taxpayers will get SMS alerts on TDS deductions.
TDS is applicable on some of the following things;
- Salary Income
- Interest on securities
- Dividend payments
- Immovable property
- Winning from horse race or lottery
How to check TDS deducted from your salary, Bank fixed deposit?
Taxpayer can check the TDS deducted from his salary and bank fixed deposits by following steps.
1. Visit https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html
2. Register if you are a new user
4. Go to My Accounts
5. Click on Form 26AS (Tax Credit)
6. Click on Confirm
7. IT will redirect to other site
8. Tick the box and click on proceed
9. Click View Tax Credit (Form 26AS)
10. Select year and PDF format to download
Note that downloaded file is password protected. Use your date of birth mentioned on you PAN, say for example, if your DOB is January 2, 1992 then your password will be 02011992.
It is necessary to check Form 26AS before filing tax returns as you will get detailed information regarding the TDS deduction and can file your returns accordingly.