The TDS software is provided by many solution providers who are in the business of Tax consultancy. Before buying TDS software one must make sure that the vendor is of proper standing in the industry with atleast 5 years of experience. The vendor should be able to provide training to the users within the organization and also should be available to resolve any issues while running the programme.
TDS is applicable for almost every payment made or payment received. There are of course a few classes of services received or provided that is not subject to TDS. These can be enlisted as:
1. Where the gross amount payable or receivable does not exceed Rs 10,000/- or more during the previous year
2. When the receiver submits the form 15H or 15G as may be applicable before tax is deducted at source
3. When the salaried employees’ income does not fall in the ambit of tax slabs for that particular year
4. When the advertising agency makes payment to the media, TDS is not applicable, however TDS is applicable when client makes payment to the advertising agency
5. When PAN is provided by the transporter, TDS and surcharge is not applicable
6. Not applicable to hotel rents
7. Also in cases where the court decision exists, TDS is not applicable. This applies to the rest of the class of similar nature.
8. In some cases, the Assessing officer considers the merits of the case and exempts certain services from applicability of TDS for that particular case. This ruling may or may not be applicable to classes of similar nature.
TDS applicability can be avoided in cases where the assessing officer certifies that the income of the professional or service provider of technical services does not exceed the prescribed limits. In such cases, the assessed should furnish this certificate to the clients so that they do not deduct tax at source from the payments made to him.
All the TDS certificates do now bear the TIN (Tax Identification Number) of the person deducting taxes, which makes it easy for the Department as well as the individual to track if the money is actually deposited with the Government.
The TDS certificate also bears the challan number and date of filing the challan at the IT department which helps in tracking, if the person deducting the tax at source is prompt in notifying the Government of the taxes.
The TDS software has the in-built programme to generate the TDS certificates in the prescribed format. The user has to enter the TIN, challan date and the PAN of the person from whom Tax was deducted. The data is then processed and a certificate is printed automatically with the click of a mouse without having to manually write the details of challan every time. Not only the TDS certificates in prescribed form, the TDS software also enables storage of data, synchronization of data with other software and generate statements and challan as per the prescribed format.
