- Principal Officer of a company for TDS purpose including the employer in case of private employment or an employee making payment on behalf of the employer.
- DDO (Drawing & Disbursing Officer), In case of Govt. Office any officer designated as such.
- In the case of “interest on securities” other than payments made by or on behalf of the Central govt. or the State Government, it is the local authority, corporation or company, including the Principal Officer thereof.
Such person is called Deductor while the person from whom the tax is deducted is called Deductee.
Tax must be deducted at the time of payment in cash or cheque or credit to the payee’s account whichever is earlier. Credit to payable account or suspense account is also considered to be credit to payee’s account and TDS must be made at the time of such credit.
Responsibilities of the Deductor:
- A Deductor is required to a obtain TAN in order to deduct taxes.
- He should obtain PAN of the deductee and deduct tax at the correct rate
- The taxes do deducted has to be deposited to the designated banks within specified time limit in the following manner:
- By or on behalf of the Govt.-on the same day.
- By or on behalf of any other person-before 7th of the following month.
However, if the amount is credited in the books on 31st March then the tax should be remitted by 30th April and the TDS return needs to be filed by 15th May.