Duties of a Person Deducting Tax at Source (TDS)
Introduction
A person responsible for deducting tax at source must deposit the tax with the Central Government, file TDS statements, and issue TDS certificates to the deductee within the prescribed timelines.
Deposit of TDS
- The deductor must deposit the TDS on or before the due date.
- Failure to deposit TDS results in the deductor being treated as an assessee-in-default, attracting interest, penalty, and prosecution.
Filing of TDS Statements
- The deductor must submit a TDS statement in the prescribed form to the Income-tax Department within the specified time limits.
- For Government deductors, if TDS is deposited without a challan, the Pay and Accounts Officer, Treasury Officer, or Cheque Drawing Officer is responsible for filing the statement.
- Correction Statements:
o Errors in TDS statements can be rectified by filing a correction statement.
o From April 1, 2025, corrections are allowed only within 6 years from the end of the relevant financial year. Previously, no time limit was prescribed.
Issuance of TDS Certificates
- The deductor must issue a TDS certificate to the deductee, detailing the tax deducted, the rate of deduction, and other prescribed particulars.