Introduction
Every year, a large number of taxpayers file their income tax returns and pay the tax that they owe. This is mainly done through the e-filing system. But how does it work? Today we will explain what is TDS and how you can easily file your income tax return online through DSC for e-filing Form 24Q.
What is TDS?
TDS is a tax deducted at source. It’s a tax that is deducted from your income before you get the money, by the payer of your income. In other words, it’s usually paid by an employer or other legal entity that employs you to work for themābut sometimes it can be deducted by religious organizations or non-profit organizations as well.
TDS returns are easy to fill out and submit through the banking system (usually), so thereās no need for any extra steps in order to take care of them yourself!
DSC for e-filing Form 24Q
You can generate a DSC for e-filing Form 24Q by visiting the DSC website.
You will need to enter your PAN and password before you can generate the DSC.
E-payment of TDS
You can make an electronic payment of TDS to the government by using an e-payment system. This is called “e-payment”. The payer makes this payment on behalf of the payee, and it is deducted from their salary or wages by their employer.
You should know that there are two types of e-payment:
- Direct deduction (DD) – where the amount has been included in your income statement as interest or royalty income; or
- Income tax credit (ITC) ā where it’s included under head ‘other expenses’, meaning that you don’t have to claim any deduction for this cost yourself at source.
Who needs to file income tax return?
If your income is more than Rs 2.5 lakh, you need to file an income tax return. You can find out whether you should file a return by calculating how much you earned in the previous year and then comparing that figure with the threshold amount mentioned above.
If your income was below this threshold, then it isn’t necessary for you to file one.
Saving and investing wisely
You can also save and invest wisely in bank FDs, PPF and NSC.
Don’t invest in stocks, mutual funds or real estate as they are risky investments. Instead, invest in gold as this is considered safe by most people. Also avoid investing in shares of start-ups as these companies may fail to deliver on their promises and there is no guarantee that you will get back your money when the company goes bust.
E-filing TDS returns is easy
You can file your TDS returns using a platform. The platform has a team of tax experts who will guide you through the process, making it easy for you to file your returns in less than 5 minutes.
Conclusion
We hope this information helps you understand the process of e-filing your TDS return and make it easier for you to pay your taxes