Today is Budget 2024 day and Finance Minister Nirmala Sitharaman is presenting the NDA government’s full budget after it returned to power in the wake of the successful conclusion of the general elections. However, as far as taxpayers are concerned, they should get familiar with a number of terms regarding income tax 2024-25. Taxpayers should also know that if they have not filed their income tax return 2023-24, then they should do so quickly. ITR filing last date is July 31, 2024. Before doing that, income taxpayers should get very familiar with a number of important terms and these focus on 5 key things including total income, TDS return, tax deducted at source to TDS certificates. Keep these in mind for your Income Tax 2024-25 Assessment Year returns.
TDS Certificates :
TDS certificate is certificate issued by the person who is required to deduct tax at source. TDS certificate specifies the rate of TDS, TDS amount and such other particulars as may be prescribed related to taxpayer.
TDS Return :
A TDS statement (TDS return) is statement of TDS filed by a person responsible for deduction of tax source. It contains particulars related to all deduction of tax made by person during a quarter.
Tax Collected at Source :
Tax Collected at Source is the amount of tax collected by specified person in specified transactions from the buyer or licensee or lessee, etc.
Tax Deducted at Source :
The concept of “Tax Deducted at Source”, commonly known as TDS ensures regular flow of revenue to the Government. The payer of income is required to deduct tax from certain payments at the prescribed rates and deposit it to the credit of the Central Government within the prescribed time.
Total Income :
The total income of a person shall include all income which is received or is deemed to be received in India or which accrues or arises or is deemed to accrue or arise in India to the assessee in a particular year. Further, income accruing or arising outside India shall also be included in the total income but only in case of a person resident in India. However, if the person is not ordinarily resident in India, income accruing or arising outside India shall be included in the total income only if it is derived from a business controlled in or a profession set up in India.
With Income Tax 2024-25 currently on top of every taxpayer’s mind, here are 5 key terms to know including total income, TDS return, tax deducted at source to TDS certificates so that no misunderstandings and mistakes are made. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
