TDS process step by step is shown in this video. TDS Process is very important to understand. A person should know the TDS process to save income tax. Income Tax need to be deducted at the time of booking transactions. TDS is deducted based the services rendered but TDS Process is same for different services. In TDS process both the parties i.e. the Service Receiver and Service Provider are involved. In TDS Process while making payment the service receiver need to deduct tax at the time of accepting the invoice or receiving of money, whichever is earlier. If TDS process is not completed the service provider cannot take credit of TDS deducted. TDS process ensures that the TDS deducted can be taken TDS credit by the service provider at the time of Income Tax Return filing. If TDS process is not completed, while filing income tax return you cannot take credit of TDS deducted and end up paying tax again. If TDS process is not completed, you will end up paying double Income Tax at the time of filing your Income Tax Return.
The TDS process includes
TDS Process 1st step: Providing Service by service provider
TDS Process 2nd Step: Submitting Invoice for services rendered
TDS Process 3rd Step: Deduction of TDS by service receiver
TDS Process 4th Step: Payment TDS deducted to Government
TDS Process 5th Step: Filing of Quarterly TDS Return by the Diductor
TDS Process 6th Step: TDS will be reflected in Form 26AS
TDS Process 7th Step: Adjusting the TDS deducted as per Form 26AS at the time of Income Tax return filing.
TDS Process 8th Step: If refund comes, check your bank statement after 3 months.
