- Tax Deducted at Source
Tax deducted at source is one of the modes of collecting Income-tax from the assessees in
India. Such collection of tax is effected at the source when income arises or accrues. Hence where any specified type of income arises or accrues to any one, the Income-tax Act enjoins on the payer of such income to deduct a stipulated percentage of such income by way of Income-tax and pay only the balance amount to the recipient of such income. The tax so deducted at source by the payer, has to be deposited in the Government treasury to the credit of Central Govt. within the specified time. The tax so deducted from the income of the recipient is deemed to be payment of Income-tax by the recipient at the time of his assessment. Income from several sources is subjected to tax deduction at source. Presently this concept of T.D.S. is also used as an instrument in enlarging the tax base. Some of such income subjected to T.D.S. are salary, interest, dividend, interest on securities, winnings from lottery, horse races, commission and brokerage, rent, fees for professional and technical services, payments to non-residents etc.It is always considered as an Advance tax which is paid to the government when we are being paid for provision made by us in the form of products or services.
A tax deductor has to apply for Tax Deduction Number or TAN and this number is a unique identification number for person deducting the tax.A tax deductor is also required to issue TDS certificate to the deductee within specified timed under section 203 of the I T Act.
# [http://www.taxworry.com/search/label/TDS Questions on TDS in India Answered including TDS rates in excel chart]
# [http://mytaxes.in/index.php?topic=8.0 Current TDS Rates in India]
This is same as Pay as you Earn PAYMENT
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