Can I claim TDS benefit when I file my return?

Benefits of TDS

 

TDS or Tax Deduction at Source implies that before you get your salary or your income, the required amount of tax gets deducted from it (only if you fall under the tax paying wrapper).
For TDS collection, there are usually two parties involved, one is the deductor and the other is the payee. Although there are many sources from which TDS can be colleted, to make our understanding simple, lets take an example of an employer and his employee (considering that the employee is a salaried person and falls under the bracket of paying taxes). In such a scenario, we will be able to grasp what the benefits and advantages are to each of the members.

Benefits to the employer-  

1. It is an easy way of collecting taxes.
2. TDS can be calculated for all employees in a quick and easy manner with the help of different tax calculators available on-line. These are easy to use, cost effective and they save a lot of time as well. There is no paper work involved as it can all be done on-line.
3. Since the calculation is all computerized, there is no scope for any miscalculations or errors.
4. Apart from the tax calculators, various forms and reports related to TDS, such as Form 16A, Form 16, Form 12BA, Form 24, Form 27A, etc can be generated with ease.

Benefits to the employee-

1. TDS is a way through which a person makes his tax payment every month, so that by the end of the tax year, an equal amount is taken from him through out the year. And he does not have the hassle of depositing a large sum at the last date of paying his taxes.
2. According to the amount of tax deducted, the employee is able to calculate how much his expenses can be in order to get a tax rebate.
3. Every month the same amount is deducted from the salary/income, so the employee knows how much he will be paid and how much will be deducted every month in the form of tax and can plan his finances accordingly.
4. There is no headache of standing in queues in order to hand over the forms as it is all done by the companies.


TDS is also most beneficial for the Government as it ensures timely payment of taxes from people earning salaries.