• Answer of this question

    Whatis tds
    Davneet Singh's image
    Davneet Singh

    Hi Dhirendra

    Meaning of TDS

    TDS means Tax Deducted at Source.

    It is a tax which is to be deducted on some expenses and payments

     As per Income Tax Act, persons responsible for making payments are required to deduct TDS at different rates.

    Example

    Suppose Max Ltd provided Consultancy Service to ABC Ltd for 40000

    In this case,ABC will pay Max Rs 40000.

    However,if in this cases,TDS @ 10% is to be deducted, then ABC will deduct 4000,and  pay Max only 36000

    ABC will deposit this 4000 TDS with Government

     

    Learn more about TDS here

    http://teachoo.com/942/364/Meaning-of-TDS/category/What-is-TDS/

     


    Written on Oct. 5, 2016, 10:51 p.m.