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TDS ( Tax Deduction at Source) is applicable on the various incomes received such as salaries, interest received etc. which is deducted when income is generated rather than at later date
TDS (Tax deducted at source) is type of Income Tax deducted by a person making payments to Assessee for Services rendered by Assessee, and deposit tax to the government.
TDS (Tax deducted at source) is type of Income Tax deducted by a person making payments to Assessee for Services rendered by Assessee, and deposit tax to the government (IT dept.) on behalf of Assesse. Deductor Also issues certificate for same (called "TDS certificate"). And TDS amount is deducted from tax payable by assessee. E.g. A renders professional services to B and charges 20,000/-. Its B's responsibility to deduct tax (TDS) and deposit in A's name and issue him TDS certificate stating TDS amount (lets say 2,000/-). While making payment of Income tax A will pay 2,000/- less, Lets say A have income tax liability of 6,000 from all the sources, So A will deduct 2,000/- from his liability of 6,000/- and pay only 4,000/- to the government. there are different rates of TDS for different types of payments.
TDS means Tax Deducted at source
TDS MEANS TAX DEDUCTED AT SOURCE
TDS means Tax deducted at source.Means where Income is generating on the same palce deduct the Tax and pay to Govenment on behalf of Receiver.
As per the Income Tax Act – persons responsible for making payments are required to deduct tax at source at prescribed rates. Instead of receiving tax on your income from you at a later date, the govt wants the payers to deduct tax before hand and deposit it with the govt.
The recipient of income receives the net amount (after deducted of tax at source). The recipient will add the gross amount to his income and the amount deducted at source is adjusted against his final tax liability. Basically take credit of the amount already deducted and paid on his behalf.
YES, FULLFORM OF TDS IS TAX DEDUCTED AT SOURCE & IT MEANS TAX HAS BEEN DEDUCTED BY THE BY THE SERVICE RECEIPIENTS FROM THE PAYMENT MADE TO THE SERVICE PROVIDER ON BEHALF OF HIM. IT IS LIABILITY FOR SERVICE RECEIPIENTS & SHOWN UNDER DUTIES & TAXES IN CURRENT LIABILITY SIDE AND ASSET FOR SERVICE PROVIDER & SHOWN UNDER LOANS & ADVANCES IN CURRENT ASSETS SIDE.
Tax Deducted at Source (TDS) is a means of collecting income tax in India, under the Indian Income Tax Act of 1961
Example: salary induvidal income !0 % given ad TDS 2.5 lakh to 5 lakh as a income tax act
TDS is based on the principle of ‘pay as and when you earn’. Tax is deducted when making payments through cash, credit or cheque, which is then deposited with the central agencies.
TDS is calculated on the basis of a threshold limit, which is the maximum level of income after which TDS will be deducted from future income/payments. TDS is deducted as a percentage of overall payment, and may range from 1% to 30% of actual payable amount.
