Detail study about the Tax Deducted at Source
TDS full form is Tax Deducted at Source. This referred to a system where the Income Tax is deducted at source from the gross income of an individual or company. The rates are dependent on different slabs in which one falls. TDS is a tax that is deducted from the total income and it varies depending on your slab. It can be deducted by employer or by salaried individuals as per their choice. The due date for TDS payment differs from person to person and also between employer and employee (salary). A TDS calculator can be used to calculate how much tax has to be deducted for a person depending on their salary and other deductions like children education allowance, house rent allowance etcetera.
How does it work?
In case the salaried individual is paying income tax, then the employer deducts the tax at source on behalf of the employee. TDS is calculated on gross salary before deduction of HRA and other allowances. In case the taxpayer is not paying income tax, then he can opt for Tax Deducted at Source deduction by filing form 16B. The due date of payment to the government department, who had collected the income tax from an individual, is different for a salaried person and self-employed person . In case however one falls under some specific category like ‘non-resident Indians’ they may be required to pay advance taxes or pay a lump sum amount as per their applicable slab rate in every financial year.
About Tax Deducted at Source:
TDS full form is Tax Deducted at Source. In India, there is a tax deducted at source. It includes taxes such as Income Tax, Service Tax and VAT etc. This is calculated by the employer on the basis of salary or income of an employee. The process of deduction at source is through banking operations. Basically, it can be understood as the withholding tax which is calculated on the gross amount before deducting usual deductions like health benefit, medical allowance etcetera.