TDS full form is Tax Deducted at Source. Under this mechanism, if a person (deductor) is liable to make payment to any other person (deductee) will deduct tax at source and transfer the balance to the deductee. The TDS amount deducted will be remitted to the Central Government.
Explanation:
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saanishaggarwal
TDS stands for "Tax Deducted at Source." It is a system of tax collection in many countries, including India. Under the TDS system, when a person or entity makes certain types of payments (such as salary, interest, rent, or professional fees) to another person or entity, they are required to deduct a certain percentage of tax at the source and deposit it with the government. This deducted tax is then credited to the account of the recipient of the payment.
TDS serves the purpose of collecting income tax in advance and ensuring that individuals and entities who receive income pay their taxes. It helps in the regular inflow of revenue to the government and reduces the tax evasion.
For example, if an employer pays a salary to an employee, they deduct a portion of the employee's salary as TDS and submit it to the tax authorities. The employee then receives the net salary after the deduction. The deducted TDS is adjusted against the employee's total tax liability at the end of the financial year.
Overall, TDS is a mechanism to ensure that income tax is collected at the source of income, making it more convenient for the government to manage tax collection and compliance.
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Answer:
TDS full form is Tax Deducted at Source. Under this mechanism, if a person (deductor) is liable to make payment to any other person (deductee) will deduct tax at source and transfer the balance to the deductee. The TDS amount deducted will be remitted to the Central Government.
Explanation:
sis do you know me
TDS serves the purpose of collecting income tax in advance and ensuring that individuals and entities who receive income pay their taxes. It helps in the regular inflow of revenue to the government and reduces the tax evasion.
For example, if an employer pays a salary to an employee, they deduct a portion of the employee's salary as TDS and submit it to the tax authorities. The employee then receives the net salary after the deduction. The deducted TDS is adjusted against the employee's total tax liability at the end of the financial year.
Overall, TDS is a mechanism to ensure that income tax is collected at the source of income, making it more convenient for the government to manage tax collection and compliance.