What is the primary purpose of Tax Deducted at Source (TDS) in India?

The primary purpose of TDS is to ensure that the government receives tax revenue in advance and to help curb tax evasion.

TDS is deducted from various types of payments. Name three types of payments that are subject to TDS.

Salaries, interest payments from banks, and professional service fees are three types of payments subject to TDS.

True or False: TDS rates are fixed and do not vary based on the type of income.

False. TDS rates vary depending on the type of income and are outlined in the Income Tax Act.

Fill in the blank: The monthly TDS deduction for a salary of $10,000 at a TDS rate of 10% is ___.

$1,000

Explain the process a taxpayer should follow to check their TDS details online.

Check TDS details online easily.

• Visit the e-filing website.

• Log in with PAN and password.

• View Form 26AS for details.

What is the significance of TDS certificates like Form 16 and Form 16A?

TDS certificates such as Form 16 and Form 16A indicate the income amount and the TDS deducted and deposited, serving as proof for the deductee.

Fill in the blank: The threshold limit for TDS on interest income for non-senior citizens is Rs. ___.

40,000

Describe the filing requirements for TDS returns.

The deductor is required to file TDS returns quarterly, detailing the TDS deducted and deposited, using specific forms based on the type of payment.

True or False: TCS applies to all sales transactions regardless of the amount.

False. TCS applies only if the transaction amount exceeds a designated threshold for certain goods.

Identify two designated goods that are subject to Tax Collected at Source (TCS).

Sale of alcoholic beverages and sale of motor vehicles exceeding a specific value are two designated goods subject to TCS.

What are the filing requirements for TCS returns?

The seller is required to file TCS returns quarterly, detailing the transactions where TCS was collected and submitted using Form 27EQ.

Fill in the blank: TCS on motor vehicles is applicable only if the vehicle's value surpasses Rs. ___.

10 lakh

Explain the mechanism of TDS as it relates to the payer and payee.

TDS involves tax deduction at source.

• Payer deducts tax percentage.

• Tax is sent to authorities.

• Payee receives TDS certificate.

What is the role of Form 27D in the context of TCS?

Form 27D is issued as a TCS certificate to the person from whom tax was collected, specifying the amount of tax collected at source.

Tax Deducted at Source (TDS) is primarily designed to ___ and ___ tax evasion.

Ensure timely collection of tax revenue and curb