Tds

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siva

siva (Querist)
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10 March 2012 what is TDS? explain the concept of TDS with one simple example

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 March 2012 TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account. Detailed provisions are contained in section 192,193 194,194A to J, 194LA and 195 of the income tax Act,1961. The concept of TDS envisages the principle of "pay as you earn". It facilitates sharing of responsibility of tax collection between the deductor and the tax administration and ensures regular inflow of cash resources to the Government and curtails tax evasion to a certain extent.