11 October 2015
Hi,
Actually I have a doubt regarding TDS ... for eg I receive a payment of Rs. 90,000 after being tax deducted at 10%... That is if A provides professional services to B amounting to 1,00,000 and B deducts 10% u/s 194J and pays 90,000 to A.....
My question is that while computing taxable income A is bound to show gross amount that is Rs. 1,00,000 so now will this not lead to double taxing the same amount??...
11 October 2015
No it will not as Rs 10000/- of TDS is like an advance Tax which will be adjusted against the actual Tax Liability and only remaining tax will have to be paid and if TDS deducted is more than the actual Tax liability, then the balance amount will be refunded.
11 October 2015
Tax deducted at source (TDS), aims at collection of revenue at the very source of income. It is an indirect method of collecting tax which combines the concepts of “pay as you earn” and “collect as it is being earned.” Its significance to the government lies in the fact that it prepones the collection of tax, ensures a regular source of revenue, provides for a greater reach and wider base for tax. At the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and convenient mode of payment.
While filing the return of your income, you assess taxable income and tax thereon(self assessment) and pay the balance tax if any (self assessment tax)or claim refund if paid excess after adjusting TDS, TCS, Advance Tax etc.
CAclubindia
