Tax Deducted at Source, popularly known as TDS, is one of the crucial aspects of the Indian taxation system. The concept of TDS revolves around the deduction of tax at the source of income. As a business owner, it is essential to understand the implications of TDS filing on your business finances. This article will shed light on how the filing of TDS impacts your business finances.
Tax Deducted at Source (TDS) is one of the modes of collecting income tax from the taxpayers in India. It is governed under the Indian Income Tax Act of 1961. Businesses and individuals making payments to contractors, professionals, or carrying out business with manufacturing companies need to deduct TDS at the time of crediting certain specific nature of the payment to the payee's account.
TDS or Tax Deducted at Source is a system introduced by the Income Tax Department, where the person responsible for making specified payments, such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment. When it comes to reimbursement of expenses, it is essential to understand how to file TDS returns correctly to avoid any legal issues. This article will guide you step by step on how to do it.
Tax Deducted at Source (TDS) is a means of collecting income tax in India, under the Indian Income Tax Act of 1961. Any payment covered under these provisions shall be paid after deducting prescribed percentage. It is managed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue managed by Indian Revenue Service (IRS). It has a great importance while conducting business transactions and also in other transactions done by Taxpayer.
In this globalized world, transactions between different countries have become commonplace. These cross-border transactions often involve non-residents, raising various tax-related issues. One such issue revolves around Tax Deducted at Source (TDS) provisions for non-resident payments in India. This article aims to provide a comprehensive understanding of these provisions.