is TDS (Tax Deduction at Source)?
scheme of TDS is that tax on income should be deducted at source i.e.
person responsible for making payment of income should deduct tax at
applicable rates & deposit the same to the Government’s
the recipient of income gets income less tax ie. TDS. The amount of tax
his income i.e. TDS can be adjusted against recepients' final tax
liability. It is simply
as you earn” scheme also known as withholding tax
in many countries.To be more simple we can say that now we receive our
incomes like interest, salary etc. after tax which is called as TDS. To
be able to claim the TDS on our incomes we must ensure to declare our
PAN to the deductors like banks.
making payment of income and deducting tax thereon is called the
Deductor. A deductor is required
to obtain a 10 digit alphanumeric registration number known as TAN.
implementing the scheme effectively, there is a complete range of
sections dealing with various areas of TDS deductions, TDS returns,
TDS rates etc.
26AS i.e. Tax
Statement is one of the very remarkably done technological improvement
in TDS compliance. Now one can be sure of whether tax deducted on
his/her income is correctly deposited to government's account or not by
viewing his/her Tax Credit Statement (26AS).
Some Quick links:
gifts in India
on property purchase
TDS by Form 15G and Form 15H