An employer or someone running a business may have to deduct TDS and deposit it with the government.
As a deductor, here are the broad 3 steps that you need to take –
- DEDUCT – deduct TDS from payments he makes
- DEPOSIT –deposit it to the Govt. by submitting a challan which has details of the TDS
- REPORT – Report the TDS deducted & deposited to the government in a statement.
TRACES is a name you’ll often here. Here is how TRACES helps you comply with the government’s TDS scheme listed above –
- TRACES is an integrated platform that provides services to deductors (just like the incometaxindiaefiling.gov.in does for tax payers)
- You can view online status of your challan deposited in banks using challan identification number or TAN
- You can download Form 16 & Form 16A
- You can download TDS Returns
- You can view past returns linked to your TAN