TDS is a direct tax which is collected at the time of payment. Payments can be salary, fees, commision, interest from banks, lottery, rent payment etc. TDS certificates are are issued by the persons responsible for deducting tax at source. Its very important to issue TDS certificate when TDS is deducted from the payments so that the payee gets to know how much tax he/she has paid.
And you voluntarily need to ask for it as many institutions & individuals may not issue TDS certificates, unless you ask for the same
Therefore, it’s important that you ask for the TDS certificate, so you know exactly how much tax has already been paid and deposited with the government.
Lets take an example to for clarity. Suppose, a man has a fixed deposit that gets him an interest of Rs 11,000. here on the bank would nearly deduct Rs 1100 on this amount. Your deducted tax would be Rs 1100. In this situation, its necessary for the bank to issue a TDS certificate to the account holder for Rs 1100. This way it gives information that the tax has been deducted from the person’s fixed deposit. The same deducted tax is then paid to the Government. If the person’s income comes under the limit of Rs. 2.5 lakhs and does not exceed more than that, he/she can file ITR (Income tax return) and can get back the Rs 1100 deducted from the fixed deposit.
Of course, in this tech savvy world, it is now possible to view how much TDS has been deducted just while sitting at home online. However, there maybe few people who are not so technically sound. For them getting a TDS certificate and calculating their own tax liability would be much better.
One of such documents is Form-16A. One has to get this document from the bank where they have invested or have their get TDS Certificate from HDFC bank (FDs) fixed deposit accounts. Form-16 A is a TDS certificate which has the credentials of tax deducted on the total interest paid to you during the fiscal year.
If you are an HDFC Bank customer, this article is just for you to have access to their Net banking facility, here’s how you can follow the steps and download your Form-16A.
People having accounts in HDFC bank, can now download TDS certificate online using their smartphones. TDS certificate is necessary for filling ITR or any other financial work. In this post, we will see how.