Tax Deducted at Source, also known as TDS, is a system of taxation where the person/entity responsible for making specific payments deducts the applicable tax before the payment is credited to the receiver. TDS on different payments and their applicable rates are notified by the Income Tax Act, 1961.

Tax Deducted at Source
TDS stands for ‘Tax Deducted at Source’. It was introduced to collect tax at the source from where an individual’s income is generated. The government uses TDS as a tool to collect tax in order to minimise tax evasion by taxing the income (partially or wholly) at the time it is generated rather than at a later date.

Check TDS Online

1. Step 1: Go to https://incometaxindiaefiling.gov.in/
2. Step 2: Register and Login to the portal.
3. Step 3: Go to ‘My Account’ tab and click on view Form 26AS (Tax Credit)
4. Step 4: Select year and PDF format to download the file and proceed further.
5. Step 5: Open the downloaded file.

The Department of Post has previously established new regulations for the deduction of tax deducted at source (TDS) if an account holder’s total withdrawal from all post office schemes exceeds Rs 20 lakh.

In the Balance Sheet, TDS is always shown in Liability Side, as it is a liability to the Goverment, the amount we used to collect on behalf of the Governent in the business process from the others. And it will be shown in Assets side when the amount has been deducted by others on this account.

From 1 June 2013, when a buyer buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs 50 lakhs, he has to deduct tax at source (TDS) when he pays the seller.

TDS full form is Tax Deducted at Source. Under this mechanism, if a person (deductor) is liable to make payment to any other person (deductee) will deduct tax at source and transfer the balance to the deductee. The TDS amount deducted will be remitted to the Central Government.

You can claim income tax deduction under Section 80C of the Income Tax Act of India, 1961, on the deposit you have made in the 5-year fixed deposit account. If the interest you earn on the FD account exceeds Rs. 40,000 per financial year for regular customers, the tax may be deducted at source by the Post Office.

TDS rates applicable for resident of India

TDS is a direct tax which is collected from the people at the time of payment like salary, rent, commission, etc. The TDS collected is then transferred to Government Account. The full form of TDS is Tax Deducted at Source.

The full form of TDS is Tax Deducted at Source. TDS provisions are given in the Income Tax Act, 1961. Using TDS, income tax is collected at the source of income generation. The one who makes payment to another person deducts TDS out of the amount and remits the amount to the government on behalf of the receiver.

TDS certificate should be generated only from the Traces portal. Process for TDS certificate is – Deductor logs into the traces portal and goes to the download tab. The form must be selected and details filled, after which the TDS certificate can be downloaded.

History of TDS India’s income tax act came into existence during 1961. There are different types of TDS rates for various types of incomes and payments under different sections of the income tax act 1961. Though it is important that one must understand, there is a certain margin level upon which TDS is applicable.

TDS receivable is measure of assessment that is deducted by different payers while making an installment to you & same is asserted as credit while recording government forms & accordingly this is an advantage. To Bank/Party A/c Cr.