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What is TDS
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Answer Posted / nitin mankar
This is a provision in Income tax act. Due to Tax Deducted
at source (TDS) the tax deduction is compalsory to a party
who is making a contract or rending the services from
outside parties. Tax deduction is applied either bill
booking of outside parties level or payment to those
parties level, which ever is earlier.
TDS is a liability of Deductee he has to submit TDS returns
next month through TDS challan and issue a TDS Certificate
(Form 16 and 16 A).
Resently this activity is done through E mail called E-TDS.
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