TDS: Tax Deducted at Source
TDS is an abbreviation commonly standing for Tax Deducted at Source, which is basically a tax collection method used in India. TDS system is managed by the Central Board of Direct Taxes and is governed under the Indian Income Tax Act 1961.
It is one of the components of the department of revenue headed by the Indian Revenue Service (IRS). For all employees in a company, the tax collection is looked over by the employer and is sent directly to the Income Tax Department.
TDS Full From
This tax is then due deposit in treasury of the Government of India which is to be done by a specific time. Its unfortunate that the range of deduction for this tax may vary from 1% to 30% or more, depending on the entity of which it is applicable and hasn’t had any uniform rate.
The two known Identities involved in the TDS processes are Deductor and the Deductee.
Deductor as the name in itself explains is a man or the institute body held responsible for deducting these taxes beforehand the payment is made.
Deductee is the man liable to pay taxes.
Other than Tax Deducted at Source TDS also stands for some of these as well.
- Total Dissolved Solids which applies in the area academics and science.
- Tabular Data Stream for the area of computing protocol.
- Tokyo Disney sea applied in the are of the building.
- Telephone and Data Streams applied in the area of Business organization.