The income earned by the individuals and businesses are subject to tax. The tax levied on the income of a person is Income tax, Such tax on income earned is payable in the same financial year wherein it is accrued in the form of advance tax. But the intimation and calculation of the income as well the tax liability is provided in the Assessment Year. This intimation form is called Income Tax Return. The form and time limit for filing ITR are different for different taxpayers based on the criteria. Online filing of income tax return requires assistance from experienced professional to make sure of your return fillings
A person who is liable to deduct tax at source has to file the TDS return as part of compliance. A TDS return is submitted by Tax Deductor in respect of every quarter with the Income Tax Department. It lowers tax evasion because tax will be collected at the time of making a payment. The return is a statement that entails the details of the tax collected, source of collection and tax paid to Government for the reporting period.
Generally, tax is deducted on transactions such as Salaries, payment to professionals and contractual basis, payment of rents exceeding certain amount, etc. For every such type of transaction and payment, there is prescribed rate of interest. The deductee can claim the benefit of the tax deducted while ITR filing, only if the deductor has filed the TDS return on time.