Tax Practical
Practical Training Demo
How to do-
Step 1  Download both files and Save in a Folder
Step 2   Read theory pdf file
Step 3  Solve Excel File
Step 4  Match your excel with Answer given on website
(if you are not able to understand, watch videos  )

What is 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.



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

  Meaning of TDS - Cases where TDS is Applicable or not


Why this tax called Tax Deducted at Source?

Source of Income of Max is Amount to be received by ABC

Tax has been deducted at this source by ABC


Who is Deductor and Deductee ?

  • Deductor is the person who deducts tax at source (ABC)
  • Deductee is the person whose tax was deducted.(Max)



Duties of Deductor

  • Deduct TDS
  • Deposit TDS
  • File TDS Return
  • Issue TDS Certificate


Duties of Deductee

  • Issue Bill
  • Collect payment
  • Collect TDS Certificate
  • Check TDS Deducted Online
  • Adjust TDS with his Income Tax Liability while filing ITR


Difference between Income Tax and TDS

Income Tax


When we deposit our own Tax, it is called Income Tax

When we deduct some other person tax and deposit it, it is called TDS

Income Tax is a Direct Tax

TDS (Tax Deducted at Source) is a Direct Tax


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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.