What Is The Meaning Of TDS? How Has Is It Charged?


9 Answers

Frances Bott Profile
Frances Bott answered
TDS stands for Tax Deducted at Source, so quite simply it's the tax that an employee also known as the deductee has to pay. The employer, also known as the deductor, deducts money from the employee's salary and withholds it until the money is due to be paid to the US Treasury. As an employee there is nothing you need to do, the employer will do this for you.
Employees have to trust their employer to make these payments. There is of course always a risk that the employer breaks this trust and fails to pay. Although the employer will face court, it still remains the employee's responsibilities for paying their own tax, even though it was the employer that took the funds. This method is used in many countries, including the US.
It's not just employees that are subjected to TDS. Other sources of incomes, such as interest, dividends, winnings from lotteries, commission and brokerage, rent, fees for professional and technical services and more are also subjected to TDS.

However, if you are self employed you are solely responsible for paying your own taxes. You will need to submit estimated tax payments to the Internal Revenue Service (IRS). You will also have to pay Social Security and Medicare tax. It is a good idea to keep on top of this and put money away in readiness so that you are prepared for the bill. If you are thinking of starting up a business then you need to be clued up on this first. There is plenty of help on the internet and plenty of books to help. It may be worth purchasing some software on bookkeeping, have a look online there may even be some free downloads.
S Bose Profile
S Bose answered
The TDS is the part of Tax deducted at source. It means the part of Tax deducted at the time of earning. For Ex. when Bank pay interest on savings, they deduct the part of Tax from interest paid and send the amount directly to the Taxation department.
Anonymous Profile
Anonymous answered
In case of certain income, tax is deducted at source by the payer at the prescribed rate at the time of accrual or payment of such incomes to the payee.

TDS charge on certain income like salary, Contract work, Commission, Rent on Immovable Propery / Furnitures & Fixtures, Proffessional Fees etc. On a certain rate.

CA Hemant Kumar
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Muhammad Jawed Profile
Muhammad Jawed answered
TDS stands for Tax deducted at sources.It is basically that tax that is deducted when you earn money.For Example If you sale some thing or any product to another company so the company that is going pay you.It will give you the payment after deducting tax that is called  Tax deducted at source.
Anonymous Profile
Anonymous answered
It is only use in bank only
Anonymous Profile
Anonymous answered
Tax Deducted at Source (TDS). It is an amount which is charged on the earnings. Amount which is charged on the base amount is called TDS.
Anonymous Profile
Anonymous answered
TDS(Tax deducted at Sources) Basically TDS is Charge on Contracts Ex:Job work,

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