Tax Deducted at Source (TDS) is a mechanism under the provisions of the Income-tax Act, 1961, where a person making specified payments such as salary, interest, commission, etc., is required to deduct a certain percentage of tax before making the payment.
The deducted amount is then directly remitted to the government. The individual or entity making the payment (the deductor) deducts the applicable TDS and provides a TDS certificate to the recipient (deductee) as proof of the tax deducted.
TDS is finally adjusted with the final tax payable of the deductee at the time of computation of income tax return.
Comments
0 comments
Please sign in to leave a comment.