TDS Return
As per the government's TDS Scheme, tax has to be deducted at the time of making payment. ... A TDS Return is a quarterly statement which has to be submitted to the income tax department. Submitting TDS Return is mandatory if you are a deductor. It has details of TDS deducted and deposited by you.
Since TDS is collected at the source of one’s income, it effectively minimises evasion of tax by getting the income taxed, whether completely or moderately at that point of time.
TDS is deducted as a percentage of overall payment, and may range from 1% to30% of actual payable amount. Income and expenditure such as salary, lotteries, interests from banks, payment of commissions, rent payment, payments to freelancers, etc. fall under the ambit of TDS. When making payments under these segments, a percentage of the overall payment is withheld by the source that is making the payments. This source, which can be a person or an organization, is known as the Diductor. The person whose payment is getting deducted is called the Deducted. For instance, a diductor is the employer paying salary to an employee (the deducted).