✔️What are the advantages of TDS?
The TDS deducted is beneficial for both you as well the government. The major benefit of TDS deduction for you (the deductee) is the convenience that it offers, as a certain amount of tax is deducted automatically. The government, on the other hand, benefits as follows - • It provides a stable source of revenue to the government • The Tax Collection base widens • The tax collection efforts for the authorities is reduced
✔️What is a TAN and how can I apply for it?
The Tax Deduction Account Number (TAN) is a ten-digit alphanumeric number. It should be obtained by all individuals liable for deducting or collecting tax. For all the TDS returns, it is mandatory to represent TAN allotted by the Income Tax Department under Section 203A of the Income Tax Act. Applying for a TAN is quite straightforward. The process can be done online by filling Form 49B available on the National Securities Depository Limited (NSDL) website.
✔️How can I know the TDS amount is deducted?
The deductor or the employer will give you the TDS certificates. These documentations will have the TDS amount that is deducted.
✔️Will I face penalties if my employer fails to deduct TDS?
No. The deductor, or in this case your employer, is responsible for any TDS incidents. It is their responsibility to collect TDS and submit the same to the government.
✔️How can I know that the TDS amount deducted is credited to the government?
There is a form 26AS available on the website of the Income Tax Department of India. It provides you with the information of whether or not the TDS deducted from your payment is credited to the government under your name.