Understanding TDS in Income Tax
TDS, or Tax Deducted at Source, is a system where a payer deducts a small portion of your income before paying you. This helps the government track income earned and collect tax in advance.
For Swiggy and Zomato delivery partners, this deduction is typically 1% of their earnings, falling under Section 194C of the Income Tax Act.
Claiming Your TDS Refund
If TDS has been deducted from your income, you're likely eligible for a TDS refund. This means you can get back the excess tax paid if your total tax liability is less than the TDS deducted. Many delivery partners can claim a full rebate if their yearly earnings are less than ₹5 lakh.
Our income tax specialists can simplify the Income Tax Return (ITR) filing process, helping you claim your refund without hassle.
Key Details for TDS Deduction and Refund
- Deduction Rate: Swiggy and Zomato deduct 1% of earnings under Section 194C of the Income Tax Act.
- Aadhaar and PAN Card Status:
- Your PAN card must be linked to your Aadhaar card to claim a TDS refund.
- If your PAN and Aadhaar are not linked, a 20% TDS will be deducted instead of 1%, and you will not be eligible for a TDS refund.
Why File Your Income Tax Return (ITR)?
Filing your ITR offers several benefits beyond just claiming a TDS refund:
- Full Refund of Tax/TDS Overpayments: Get back any excess tax paid.
- Income Proof: Your ITR document serves as widely accepted proof of income.
- Economic Participation: It officially integrates you into the financial system.
- Loan Approval: Banks and financial institutions often require 3 years of ITRs for loan approvals.
- VISA & Insurance Claims: ITR documents can be crucial for verifying your income when applying for visas or making insurance claims.
How to Apply for Your Tax Refund
To file your ITR and claim your refund, you'll need the following documents:
- Mandatory PAN Card Number
- Aadhaar Card
- Bank Account Number & IFSC
Important Deadlines:
- ITR should be filed every year.
- The last date to claim a TDS refund is December 31st of every year.
- Always ensure your PAN card is linked to your Aadhaar Card as mandated by the Government of India.
Ready to begin your tax refund journey and get your money back?