18 April 2009
TDS is a measure, in which persons who are making payment of income to any other person are responsible to deduct tax from such income (at specified rates) and pay only net amount. Tax so deducted (called TDS) shall be deposited with the Government’s treasury within the stipulated time.
------------------------------------------------- Apart from TDS, another device applied for quicker collection of tax is Tax Collection at Source (TCS) u/s 206C.
in which Every seller, shall collect tax from the buyer of any specified goods, at the time of - • Debiting the amount payable by the buyer to the account of the buyer; or • Receipt of such amount from the buyer,- whichever is earlier.
Objects of TDS and TCS • Quicker realisation of tax. • Effective realisation of tax
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