Tax Deducted at Source (TDS) is a system introduced under the Income Tax Act, 1961, to collect tax directly from the source of income. Instead of waiting for the financial year to end, tax is deducted when income is paid, ensuring steady revenue for the government and reducing the chances of tax evasion. Why is TDS Important? TDS plays a vital role in the Indian taxation system. It: Ensures timely collection of tax for the government Prevents tax evasion by collecting tax in advance Reduces the burden on taxpayers at the end of the financial year How Does TDS Work? When a specified payment such as salary, rent, interest, professional fees, or commission is made, the payer deducts a prescribed percentage of tax before making the payment. This deducted tax is deposited with the government on behalf of the payee. Example: If you earn interest on a fixed deposit of ₹10,000 and the applicable TDS rate is 10%, the bank will deduct ₹1,000 as TDS and deposit it with the government. You will receive ₹9,000, and the deducted ₹1,000 will be reflected in your Form 26AS. Key Points about TDS: TDS rates vary depending on the nature of payment and the taxpayer’s status. If excess TDS is deducted, taxpayers can claim a refund while filing their Income Tax Return (ITR). PAN or Aadhaar must be provided to avoid higher TDS deduction. Forms like 15G/15H can be submitted to prevent TDS deduction in certain cases. Always cross-check TDS deductions through Form 26AS or the Annual Information Statement (AIS) before filing ITR. Conclusion: TDS is not only a compliance requirement but also a mechanism that helps taxpayers distribute their tax liability evenly throughout the year. Understanding TDS is essential for better tax planning, avoiding penalties, and ensuring smooth ITR filing. 👉 For a detailed explanation, watch my video .
If you’re starting a business in India, GST registration is one of the first and most important compliance steps you need to take. Whether you’re a trader, service provider, freelancer, or e-commerce seller, getting registered under the Goods and Services Tax (GST) ensures that you operate legally and benefit from input tax credit and wider market access. In this article, we’ll walk you through who needs to register, the registration process, and the documents required.
📌 Who Should Register Under GST? You are mandatorily required to register under GST if: Your business turnover exceeds ₹40 lakhs (₹20 lakhs for service providers) You are an inter-state supplier You sell goods or services on e-commerce platforms You are a casual taxable person or a non-resident taxable person You are liable to pay reverse charge You want to voluntarily register to claim Input Tax Credit and boost your business credibility
🎥 Need Help? Watch the Step-by-Step Video Guide To simplify the process further, I’ve created a detailed video guide on how to do GST registration from start to finish.
💡 Final Thoughts Getting GST registered is more than just a legal requirement — it builds trust with your customers, allows input tax credits, and sets you up for growth. Whether you’re a new entrepreneur or scaling your operations, don’t delay your GST registration. If you need assistance, feel free to reach out.
