Save yourself from paying excess TDS

Here’s a simplified guide on managing TDS payments effectively and saving on unnecessary deductions: Understanding TDS (Tax Deducted at Source): TDS is deducted by the payer from various incomes like salary, interest, rent, etc., and remitted to the government.

Strategic Planning to Reduce TDS: Income Threshold: If your estimated total income falls below the taxable limit, you can avoid TDS. Declare investments and eligible expenses to your employer for adjusting TDS deductions accordingly. Forms to Prevent TDS Deductions: Form 15G/15H: Self-declaration forms for interest income and senior citizens respectively. Submit these annually to banks to prevent TDS on interest income. Form 13: For incomes like commission, brokerage, etc., submit to the Assessing Officer for lower or nil TDS deduction.

Key Considerations: Assess Total Income: Carefully calculate total income to determine eligibility for avoiding TDS. Irrevocability of Forms: Once submitted, these forms cannot be withdrawn; ensure accuracy before submission. Self-Assessment and Advance Tax: If income exceeds exemption limits, conduct self-assessment and pay advance tax to avoid penalties.

Submission Process: Obtain forms from banks or online sources. Submit forms annually before the start of the financial year to the respective authorities or banks.