TDS Income Tax

Tax Deducted at Source (TDS) is an important mechanism used by governments to collect income tax at the source of income generation. TDS ensures regular and efficient tax collection by deducting a certain percentage of income at the time of payment and remitting it to the government.

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TDS Income Tax

Tax Deducted at Source (TDS) is a crucial mechanism that ensures the collection of taxes at the time of various transactions. TDS on income tax applies to both individuals and businesses. Tax Deducted at Source (TDS) income tax is a mechanism that ensures regular tax collection by deducting a portion of income at the source. It simplifies the tax payment process for taxpayers and helps prevent tax evasion. Understanding TDS provisions, complying with documentation requirements, and leveraging TDS credits while filing income tax returns are crucial for individuals and entities involved in financial transactions subject to TDS.

TDS Works

Identification of Payments

TDS is applicable to various payments, including salaries, professional fees, interest, rent, commission, contract payments, and more

Deduction of Tax

The person or entity making the payment (referred to as the deductor) is responsible for deducting tax at the applicable rates from the total payment amount.

TAN and PAN

The deductor must have a Tax Deduction and Collection Account Number (TAN), while the person receiving the payment (referred to as the deductee).