Tax deduction at source , is the tax which a person responsible for making a payment has to deduct from the amount he is paying , in lieu of the tax the receiver of the amount is suppose to pay and deposit it into the government coffer, quoting PAN of the receiver of the amount .
This one of the most effeciant ways of tax collection for the government .
Take the case of the transaction that took place between Vodafone and Hutch . When Hutch sold its telecom business to Vodafone , as per law Vodafone which was making the payment , should have resorted to TDS and must have paid Hutch the balance amount . But they did not , claiming that both Hutch and Vodafone , were Non Indian companies ( or some reason like that ) .
But now the Indian courts have decided that Vodafone , must have deducted TDS before they paid Hutch , hence the TDS amount , which must ideally have been paid by Hutch, would now have to be paid by Vodafone and the amount involved is a staggering $2 billion as TDS along with another $2 billion as penalty.
For lesser mortals like us , we see our employer resorting to TDS every month when our salaries are credited . Now the question is how do we check if that amount has been credited to the government.
Well this is what you could do
Log on to the website http://www.incometaxindiaefiling.gov.in/ and register here . After you login in navigate to My Accounts > View Tax Credit Statement (Form 26AS)
you will able to see all the TDS credits in your account across different financials years
This one of the most effeciant ways of tax collection for the government .
Take the case of the transaction that took place between Vodafone and Hutch . When Hutch sold its telecom business to Vodafone , as per law Vodafone which was making the payment , should have resorted to TDS and must have paid Hutch the balance amount . But they did not , claiming that both Hutch and Vodafone , were Non Indian companies ( or some reason like that ) .
But now the Indian courts have decided that Vodafone , must have deducted TDS before they paid Hutch , hence the TDS amount , which must ideally have been paid by Hutch, would now have to be paid by Vodafone and the amount involved is a staggering $2 billion as TDS along with another $2 billion as penalty.
For lesser mortals like us , we see our employer resorting to TDS every month when our salaries are credited . Now the question is how do we check if that amount has been credited to the government.
Well this is what you could do
Log on to the website http://www.incometaxindiaefiling.gov.in/ and register here . After you login in navigate to My Accounts > View Tax Credit Statement (Form 26AS)
you will able to see all the TDS credits in your account across different financials years
No comments:
Post a Comment