3 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(184835 Points)
Replied 22 May 2018
Refer: 1. FAQs on Tax Deducted at Source
Ajay
(CA Job)
(512 Points)
Replied 22 May 2018
Dear Rooba
It's too general a question to answer. You can go through the links Dhirajlal Sir has provided above.
Assuming you are a beginner, just an overview is as follows:
TDS is a form of ad-hoc advance remittance of income-tax on payments made by specified persons (payer) to certain specified payees on a reverse charge mechanism; reverse charge mechanism in the sense that the payer of the amount is given the responsibility to deduct the tax right at the source at specified rates and pay to the government on behalf of the payee; ad-hoc in the sense that the amount of tax deduction need not necessarily have any nexus with the actual taxable income of the payee.
The main aim of these provisions is to ensure fund for the Governmental operation through out the year, as also to ensure reduced chances of revenue leakage and to widen the tax net. Over the years, many provisions have been added to the Act for the smooth operation/implementation of TDS machinery, to quote some - Section 40(a)(i)/(ia), Section 58(1)(a)(ii)/(iii), Section 201 etc.
Regards
Ajay
Ajay
(CA Job)
(512 Points)
Replied 22 May 2018
Dear Rooba
It's too general a question to answer. You can go through the links Dhirajlal Sir has provided above.
Assuming you are a beginner, just an overview is as follows:
TDS is a form of ad-hoc advance remittance of income-tax on payments made by specified persons (payer) to certain specified payees on a reverse charge mechanism; reverse charge mechanism in the sense that the payer of the amount is given the responsibility to deduct the tax right at the source at specified rates and pay to the government on behalf of the payee; ad-hoc in the sense that the amount of tax deduction need not necessarily have any nexus with the actual taxable income of the payee.
The main aim of these provisions is to ensure fund for the Governmental operation through out the year, as also to ensure reduced chances of revenue leakage and to widen the tax net. Over the years, many provisions have been added to the Act for the smooth operation/implementation of TDS machinery, to quote some - Section 40(a)(i)/(ia), Section 58(1)(a)(ii)/(iii), Section 201 etc.
Regards
Ajay
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