TDS

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2011 WHY WE PAY TDS TO GOVERNMENT ? IN SIMPLE LANGUAGE CAN ANYONE SAY THIS. IN SHORT WHAT IS TDS ?

Roopesh.V.Naik

Roopesh.V.Naik (Expert)
Follow

21 May 2011 Government introduced the concept of TDS to ensure regular flow of fund to the Government. The same concept follows in the case of Advance Tax also.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

21 May 2011 Tax deducted at source is one of the modes of collecting Income-tax from the assessees in India. Such collection of tax is effected at the source when income arises or accrues. Hence where any specified type of income arises or accrues to any one, the Income-tax Act enjoins on the payer of such income to deduct a stipulated percentage of such income by way of Income-tax and pay only the balance amount to the recipient of such income.
The concept of TDS is also used as an instrument in enlarging the tax base.
Some of such income subjected to TDS are salary, interest, dividend, interest on securities, winnings from lottery, horse races, commission and brokerage, rent, fees for professional and technical services.

Upgrade to CAclubindia Pro. Subscribe Now!