Answer Posted / sunder raj
TDS or Tax Deduction at Source implies that before you get your salary or your income, the required amount of tax gets deducted from it (only if you fall under the tax paying wrapper).
For TDS collection, there are usually two parties involved, one is the deductor and the other is the payee. Although there are many sources from which TDS can be colleted, to make our understanding simple, lets take an example of an employer and his employee (considering that the employee is a salaried person and falls under the bracket of paying taxes). In such a scenario, we will be able to grasp what the benefits and advantages are to each of the members.
Benefits to the employer-
1. It is an easy way of collecting taxes.
2. TDS can be calculated for all employees in a quick and easy manner with the help of different tax calculators available on-line. These are easy to use, cost effective and they save a lot of time as well. There is no paper work involved as it can all be done on-line.
3. Since the calculation is all computerized, there is no scope for any miscalculations or errors.
4. Apart from the tax calculators, various forms and reports related to TDS, such as Form 16A, Form 16, Form 12BA, Form 24, Form 27A, etc can be generated with ease.
Benefits to the employee-
1. TDS is a way through which a person makes his tax payment every month, so that by the end of the tax year, an equal amount is taken from him through out the year. And he does not have the hassle of depositing a large sum at the last date of paying his taxes.
2. According to the amount of tax deducted, the employee is able to calculate how much his expenses can be in order to get a tax rebate.
3. Every month the same amount is deducted from the salary/income, so the employee knows how much he will be paid and how much will be deducted every month in the form of tax and can plan his finances accordingly.
4. There is no headache of standing in queues in order to hand over the forms as it is all done by the companies.
TDS is also most beneficial for the Government as it ensures timely payment of taxes from people earning salaries.
| Is This Answer Correct ? | 5 Yes | 0 No |
Post New Answer View All Answers
Please let me know the depreciation rates.... com 2011-12.... Vechicle - Computer - Furniture - Tel instrument -
how to filing rt-1
How to calculate long term capital gain
what is the rule of TDS Deduction for Pvt Ltd Company ??? And What rule of not TDS Deduct for PVT LTD company ???
HOW THE INTEREST WILL BE CALCULATED IF WE MAKE INCOME TAX RETURNS LATE AND WHAT IS MEANT BY YEAR END?
sir, please suggest me. If in case work contract, wct not deduct by principal contractor then what is the consequence ? I mean please clear me if the principal contractor not deduct wct then is the contractor (sub) liable to pay wct ?
when wct@8.75% is charged from the vendor. How much TDS has to be deducted against it??
if a buyer paid full cst 14.5% for a redistrable assect then whatis the registration process?
What is RITC under UP VAT. and How it is calculated.
What is Form-I, FORM-F, FORM-H, FORM-E and FORM-C?
I had filed e-filling IT Return for A.Y.2011-12 before 1yr but yet I have not get Refund & not seen refund status at on income tax site now I filed e-return for A.Y. 2012-13 now what i do for refund A.Y. 2011-12?
HOW TO FILL UP WEST BENGAL VAT FORM 14. NOT TECHNICALLY I AM AWARE ABOUT THEIR MANUAL. BUT I WANT TO KNOW POINT BY POINT.
wct amount deducted by main company .that amount will be returned Subcontractor?If yes,how process is given me.
What are the deductions under salary head?
Can I know the full description about capital and revenue in nature? and also the expenses that allowed for tax and not allowed for tax?
