How to Legally Avoid TDS Tax: Essential Tips
Learn effective ways to legally avoid TDS tax with our essential tips and professional advice.
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Avoiding TDS tax involves several legal methods. Submit Form 15G or 15H if your income is below the taxable limit. Ensure accurate PAN details are provided to avoid higher deductions. Consider tax-saving investments under Section 80C and Section 10 exemptions. Consult a tax professional for personalized advice.
FAQs & Answers
- What is TDS tax and who is liable to pay it? TDS (Tax Deducted at Source) is a tax collected at source by the government on certain income types, such as salaries, interest payments, and professional fees. Individuals and businesses receiving such income are liable to pay TDS.
- How can I avoid TDS deductions legally? You can avoid TDS deductions by submitting Form 15G (for individuals below 60 years) or Form 15H (for senior citizens) if your total income is below the taxable limit. Ensure accurate PAN details are provided to prevent higher deductions.
- What are some tax-saving methods associated with TDS? To save tax related to TDS, consider investing in tax-saving instruments under Section 80C, such as Public Provident Fund (PPF) and Equity Linked Saving Scheme (ELSS), and take advantage of exemptions under Section 10.
- Should I consult a tax professional regarding TDS? Yes, consulting a tax professional can provide personalized advice tailored to your financial situation, ensuring compliance with tax laws and maximizing potential savings.