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Who is deductor in TDS?

Kanak

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Roohani

2 December 31, 2021

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TDS as we all know is the concept introduced by the Government of India aims at deducting the tax at the very source. I understand that many people may be confused with the part of determining who is a deductor is TDS and who is the tax deductee. Well, you need not worry, I’ve got your back. I will tell you about both of them as per the Income Tax Department’s criteria.

Who is TDS deductor?

When a person or a company makes payment of a specified nature to another person or a company, he or she is liable to deduct TDS. This buyer of a product or service is known as a deductor under TDS rules. The seller, however, is known as a deductee.

Let us understand this with an example:

Reena is a freelance web designer who works for multiple clients. Once her payment threshold of Rs. 30,000 is met with a client, the client deducts TDS amount and files it with the government on Income tax portal. Therefore, in this case, TDS deductor is the client and Reena, the freelancer, is the deductor.

Can a deductee get TDS refund?

While the TDS is paid to the government by the deductor, the person or company from whose income tax the TDS has been deducted can claim refund through Form 26AS or TDS certificate issued by the deductor.