TDS (tax deducation source)

Post Reply
deepankan
Posts: 2
Joined: Thu Oct 25, 2018 3:41 pm

TDS (tax deducation source)

Post by deepankan »

TDS is a tax deducted source. This tax is introduced by the governments to collect tax from a free source of Income. It is a type of advance tax and is used as a tool by the Government to collect the tax and minimize tax evasion.
TDS is deducted on the following types of payments:
1.Salaries
2.Interest payments by banks
3.Commission payments
4.Rent payments
5.Consultation Fees
6.Professional fees


However, it is not applicable to all individuals and their incomes. The Income Tax Act clearly states different rates for different payments and categories of recipients. For instance, you don?t have to deduct Tax Deducted at Source when you pay your Lawyer?s fee or pay rent. The concept of Tax Deducted at Source is that every individual making a specified type of payment to another individual shall deduct tax at the prescribed rates and deposit it into the government?s account.

Top
Post Reply

Return to “Admin Back Office”