TDS: Tax Deducted at Source
TDS is one of the tax collecting method used in India. It is governed under the Indian Income Tax Act 1961 and managed by Central Board of Direct Taxes (CBDT).
It is a part of department of revenue managed by Indian Revenue Service (IRS). In a company, the Company’s employer collects taxes from their employee and send it directly to the income tax department.
This tax has to be deposited in treasury of Indian Government within a specified time. There is not a uniform rate of deduction for this tax. It may be ranged from 1% to 30% or more, depending on the entity on which it is applicable.
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Deductor and Deductee are two identities involved in the process of TDS:
Deductor: The deductor is a person or a company who is responsible for deducting the money (taxes) before the payment is made.
Deductee: The deductee is the person who is liable to pay the tax or from whom the tax is deducted.
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Other Full Forms of TDS
|Acronym||Expansion||Area of application|
|TDS||Total dissolved solids||Academic and science|
|TDS||Tabular data stream||Computing protocol|
|TDS||Telephone and data streams||Business organization|