Tds as benefit
This query is : Resolved
23 August 2008
i m not geting the concept of tds. when we deduct tds the person who is paying the tds for that person its an exp & the person for whom it is deducted will so it as an tds on receipt and we take the benefit of that.so ultimatly the the tax paid is taken as benefit then whats going in to the hand of govrnment.
23 August 2008
Hi Nayana,
TDS is a benefit provided to the assessee to reduce their tax liabilities.
Further the Govt. want to have watchful eye on the transactions being done.
Once TDS is deducted, details of the same has to be disclosed to the department whereby reducing manipulation of transaction.
Rgds/
Vineet
TDS is a benefit provided to the assessee to reduce their tax liabilities.
Further the Govt. want to have watchful eye on the transactions being done.
Once TDS is deducted, details of the same has to be disclosed to the department whereby reducing manipulation of transaction.
Rgds/
Vineet
23 August 2008
Please note that TDS is been introduced by Income Tax Authorities to check the evasion of income tax by various contractors/professional service providers and other individuals. Tax Deduction at Source has been made a statutory obligation at Company End.Thus if Company is making payment towards services to an individual , it will deduct TDS from his/her payment and submit the same to Government. It's true the individual can claim the benefit of TDS while submitting his/her return but in this way the individuals or so who were earlier not submitting any returns and thus were evading taxes have been nailed. Also PAN No. of Deductees been made compulsory and thus the Government has been able to put a substantial check towards evasion of Income taxes.
23 August 2008
E.g
I'm a corporate you are some service provider...
I pay you for some service you provide..
you'll receive income for that ..
you may have to pay tax for that
but this corporates will collect the tax from you and it will pay it to the government
when you are filling incometax returns.. you can adjust this tax what the corporate collected from you in your tax liability
THIS IS AN EXAMPLE FOR COMPLETE KNOWLEDGE OF TDS YOU PLEASE REFER YOUR INCOME TAX MATERIAL
I'm a corporate you are some service provider...
I pay you for some service you provide..
you'll receive income for that ..
you may have to pay tax for that
but this corporates will collect the tax from you and it will pay it to the government
when you are filling incometax returns.. you can adjust this tax what the corporate collected from you in your tax liability
THIS IS AN EXAMPLE FOR COMPLETE KNOWLEDGE OF TDS YOU PLEASE REFER YOUR INCOME TAX MATERIAL
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