Confused between Income Tax and TDS? Know the Differences! - PowerPoint PPT Presentation

About This Presentation
Title:

Confused between Income Tax and TDS? Know the Differences!

Description:

Did you think that income tax and TDS mean the same thing? Find out how they are different and why you should file ITR religiously. – PowerPoint PPT presentation

Number of Views:38
Slides: 13
Provided by: herofincorp
Tags: income_tax | tds

less

Transcript and Presenter's Notes

Title: Confused between Income Tax and TDS? Know the Differences!


1
  • Confused Between Income Tax and TDS? Know the
    Differences!

2
  • Income Tax Means
  • The tax charged on your personal gross income
  • There are different slabs with different tax
    rates, based on income
  • You are eligible for exemptions on childrens
    education, health and life insurance premiums,
    interest paid on loan against property and
    charitable donations
  • Tax is levied when a financial year ends

3
  • TDS Means
  • It is tax deducted at source from your monthly
    salary by the employer
  • The employer assumes that your income is taxable
  • Financial institutions also deduct TDS from
    periodic interest earned
  • The government collects taxes efficiently this way

4
  • TDS vs. Income Tax

5
  • 1 Difference
  • Income tax - Calculated for every financial year
    and levied on annual income
  • TDS - Deducted when salary is paid or interest is
    earned on investment

6
  • 2 Difference
  • The taxpayer pays income tax directly after
    calculating annual liability
  • TDS is deducted or paid by a third party like the
    government or employer

7
  • 3 Difference
  • Income tax is charged on already-earned income
    for a financial year, based on slabs
  • TDS is deducted whether your income is taxable or
    not and before you receive salary

8
  • 4 Difference
  • Income tax indicates your complete tax
    contribution
  • TDS implies partial tax contribution

9
  • 5 Difference
  • Unlike income tax, TDS is levied on
  • Rent paid on immovable or movable property above
    Rs 2.4 lakh
  • Contractor payment over Rs 1 lakh
  • Buying immovable property over Rs 25 lakh
  • Winning prize of over Rs 10,000

10
  • Why File Income Tax Return?
  • It is mandatory, whether your income is taxable
    or not
  • It should be filed even if TDS gets deducted
  • If total annual income is not taxable but TDS
    (more than what you owe) is deducted, you can
    file for refund

11
  • Both TDS and income tax are related to your
    income. But they are determined and settled in
    different ways.

12
Thank You !Would Love to Hear From You
  • Hero FinCorp Limited
  • 09, Basant Lok, Vasant Vihar, New Delhi - 110057
  • Tel. 18001024145
  • Email Id Corporate.Care_at_HeroFinCorp.com
  • Website https//www.herofincorp.com/
  • Know more- Confused between Income Tax and TDS?
    Know the Differences!
Write a Comment
User Comments (0)
About PowerShow.com