What is difference between TDS and non TDS?

There is a connection between TDS and income tax return. In the case of tax deduction at source when the total annual income of the individual is not taxable; or, the tax deducted is more than what the individual owes as tax, then you can file for an income tax refund.

What is the meaning of tax deducted at source ie TDS?

TDS stands for tax deducted at source. TDS has to be deducted at the rates prescribed by the tax department. The company or person that makes the payment after deducting TDS is called a deductor and the company or person receiving the payment is called the deducted.

What is difference between TDS and GST?

GST is a type of indirect tax to be paid to deductor whereas TDS is a type of direct tax to be levied upon deductee. GST has to be paid whether the deductee made a profit or loss whereas TDS is only to be paid when there is a sustainable profit in the business transaction.

What is the difference between TDS and service tax?

Logically speaking, TDS is to be deducted from the income of the recipient. Service tax is not an income of the service provider as the service provider would be collecting service tax from the service receiver and depositing this amount with the govt.

Should I pay tax if TDS is deducted?

TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments. Usually, the person receiving income is liable to pay income tax.

What is the purpose of deducting tax at source?

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.

What is tax deducted at source in income tax?

What is tax deduction at source Explain with examples?

As the name suggests, the concept of TDS is to deduct tax at its source. Let us take an example of TDS assuming the nature of payment is professional fees on which the specified rate is 10\%. ABC, then XYZ Ltd shall deduct a tax of Rs 5,000/- and make a net payment of Rs 45,000/- (50,000/- deducted by Rs 5,000/-) to Mr.

What is tax collected at source?

Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.

Why is TDS not deducted on GST?

Cases where TDS on GST is not required to be deducted. TDS on GST is only required to be deducted where the payment made or credited to the supplier is done by the above mentioned category of persons. If the Contract Value does not exceed Rs. 2.5 Lakhs, No TDS is required to be deducted.

Why do we deduct TDS?

What is the difference between Tax Deducted at source and TCS?

Tax deducted at source (TDS) and tax collected at source (TCS)are two such taxes levied on individuals that are often confused with each other. Both of these are levied at the point of the origin of income. Difference between TDS and TCS The Government of India collects both direct and indirect taxes to generate revenue for the country.

What is the difference between TDs and TCS?

Tax deducted at source (TDS) and tax collected at source (TCS)are two such taxes levied on individuals that are often confused with each other. Both of these are levied at the point of the origin of income. The Government of India collects both direct and indirect taxes to generate revenue for the country.

What is the meaning of TDs in income tax?

TDS section in the Income Tax is known as Tax deducted at source. So, this concept can be termed as a buyer end activity. Any company or individual (deductor) making a payment to other entity (deductee) then has to deduct tax at source if it crosses a specific threshold limit.

What happens if you don’t pay TDs?

Failure to deposit TDS or TCS with the government If an individual fails to deposit or collect tax, he or she would have to face certain legal consequences. This includes a penalty equal to tax not collected or deducted. The individual may also be imprisoned for 3 to 7 years along with a fine as applicable.

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