What is the Full Form of TDS?

TDS stands for Tax Deducted at Source.

Definition of TDS

Well as a matter of fact TDS stands for tax deducted at source.  As per the Income Tax Act, any company as well as person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. This is what here happened in the case of Tax Deduction scheme.

Actually there is the Tax department who prescribed every thing. All the terms and guidelines are followed as per the tax department. So dear this very TDS in fact has to be deducted as per the rates that is prescribed by none other than that of the tax department.

Meaning of TDS

SO far you guys have come to know about what actually TDS is and also you have now come to know the full form of TDS. Well here I am going to share some important things about the topic that is TDS here.

• One of the thing here says that the company or person that in fact done the payment after deducting TDS is called a deductor.
• Apart from the deductor there is another known as deductee. Well company or person receiving the payment is known as that of the deductee.
• It is the responsibility of the deductor to deduct TDS before making the payment and deposit the same with the government.
• One of the important thing here includes is that TDS i.e Tax Deducted at Source is deducted irrespective of the mode of payment (cash, cheque or credit) and is linked to the PAN of the deductor as well as deductee.
• Actually dear Tax Deducted at Source is a type of advance tax.

So dear these are here some of the things that are under the agenda of TDS that stands for Tax deducted at Source. Now let me here share with you some kind of payments on which deduction takes place.

Kinds of Payments

Here are some of the types of payments on the basis of which deduction of the very tax takes place.

1. Salaries
2. Professional fees
3. Rent payments
4. Interest payments by banks
5. Consultation fees
6. Commission payments

Well these are some of the types of payments or in other word you can say that Tax Deducted at source i.e TDS is deducted on the above mentioned types of payments.

What do you mean by TDS return?

Here comes one of the important topic most of the people are looking for. What is TDS return?

Well dear in the earlier section I have mentioned about the Deductor as well as about Deductee. So the thing is that deductor has to deposit the deducted TDS to the government. All the details of the same deduction to be filed in the form of a TDS return. As a matter of fact a TDS return has to be filed quarterly. Actually quite a few kinds of TDS deductions have to be filed using different TDS return forms.

This is all here about the TDS. Please comment and share.