Familiarising Investors With The TDS Process

KredX Process 101: Familiarising Investors With The TDS Process For FY 2018-19

As India’s leading invoice discounting platform, we focus our efforts on providing seamless customer service by keeping our processes transparent and simple.

In light of this, we wanted to familiarise our investors with the TDS process for FY 2018-19. KredX strictly adheres to the tax guidelines laid out by the government and as such we have outlined the details of the TDS process on the platform to ensure a hassle-free experience.

But first, here’s some background on TDS. For any interest income that an investor has earned in the FY18-19, TDS is calculated at 10% of that income. Which means, hypothetically speaking, if an investor makes 1000 INR as interest income, then TDS will be 10% * 1000 = 100 INR. This TDS is filed by the vendor as the nature of payment under section 194A i.e. interest other than “Interest on Securities”.

Please Note: This process is only valid for FY 2018-2019.

TDS Process For FY 2018-19

If a vendor has filed the TDS against an interest expense incurred by them on a specified deal, the investor can download the corresponding Form 16A from the KredX platform.  In case, an investor wants to download Form16A for reference purpose, they can do so by taking the following actions:

  • Log into the KredX dashboard
  • Click on Order History on the left-hand side panel
  • Go to Download From16A on the dashboard and select the desired financial year.

This will give the investor information on Form16A for that particular financial year.

If a vendor under files TDS, the balance amount of TDS which was held by KredX will be refunded back to the investor post 30th June 2019.

Accessing the TDS Report

To access the TDS report, the investor needs to follow simple steps:

  • Log into the KredX dashboard
  • Click on Order History on the left-hand side panel
  • Go to Download Statements
  • Download the TDS report for the desired financial year from the dropdown menu list

The TDS report contains two sheets which give the investors details on the following:

  • TDS Summary Sheet: The TDS summary sheet contains all details related to TDS which is paid by a vendor against all the deals purchased by an investor.
  • TDS Certificate Sheet: This sheet contains the certificate number and the receipt number for all the vendors who have filed their TDS against the deals sold by them to an investor.

The above-mentioned process is only valid for the financial year 2018-19. Please note that the TDS process will be revamped for FY 2019-20 regarding which our patrons will be intimated via email at a later date.

At KredX, we are committed to ensuring that customers, both businesses and investors, have the best possible experience on our platform. And as always, in case of any queries regarding this process or any other, patrons can reach out to us at care@kredx.com at any time.

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