TDS - Its Purpose and Liabilities

TDS is a tax liability where the buyer collects the tax amount from the seller in against of purchase of an asset/service and files the ITR. In this situation, seller receives the tax payment receipt through the buyer. To file your TDS and issue the deposit receipt, we’ve our 100% guaranteed Government authorized TDS Filing Package to give you assured result. Do not delay in choosing this service to complete its process within due date. It can cost you with penalties/legal charges if you fail to pay the TDS and make the return on time. Go through its details and know how it works THE BEST.

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TDS Liabilities in India – An Overview

Tax Deducted at Source or 'TDS' is the tax, which either a company or individual collects in against of a payment made of value more than the income tax threshold amount. Here, one who makes payment for his/her/its purchase collects the tax and is called ‘Deductor’ while, one receiving such payment with TDS deduction is said to be ‘Deductee’. TDS should be deposited by the deductor in the IT Department’s Account and a TDS Return is usually filed quarterly (except, for certain cases, such as, payment for immovable property, etc. where one time Return is filed) in specific due date. Like income tax, failure of on-time TDS transfer and its filing to IT Department of India is a punishable legal offence and thus should not be practiced intentionally. 

Note: TDS certificate, such as Form 16/16A/16B should be issued after TDS deduction to the deductee.


These payments can be charged under TDS deduction, in case exceeds the income threshold limit:

  • Salary
  • Award Value for winning lottery, gambling, etc.
  • Bank Interest
  • Interest on securities
  • Insurance payment
  • Deemed dividend
  • Commission
  • Payment on immovable property
  • Payment of rent


These documents are required during TDS Return Filing:

  • Valid TAN (Tax Deduction and Collection Account Number)
  • Valid PAN linked to Aadhaar
  • Valid TDS Statements, TDS Certificates, TDS Challan, etc.
  • Valid proofs of Interest income/Property purchase/Capital gains, etc.
  • Bank Account Details


In some cases, as mentioned below specific TDS rule/exemption is allowed:

  • An individual from HUF/Individual who does not need to maintain Books of Accounts of income is not liable to deposit TDS for his/her payment.
  • In case, excess TDS is deducted the taxpayer can claim for refund by submitting correct proofs.


TDS is a way introduced by the government to control tax evasion. The government levied a fixed portion of TDS on the employee's salary or generated income.

Yes. If you fail to pay TDS online then you can pay it in offline modes by visiting the bank.

Yes. You have to submit form 15G or 15H to the bank declaring that your income is below the exempted limit.

Yes. The seller can claim TDS on selling the property.

In this case, an individual who does not pay TDS of immovable property has to pay the penalty of Rs.1 lakh under section 271H.

The deducted tax must be paid to the government under section 51(2) of the KGST/CGST act of 2017.

Yes. AN individual can pay the TDS after the due date but he/she has to bear the penalty under section 2234E.

Yes. You can avoid paying the tax deducted at the source by filling out the form 15H or 15G.

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