Tax Deducted at Source (TDS) is a certain amount that is reduced when a particular payment, such as professional fees, interest, commission, salary, rent, etc. is made. People who make payments deduct tax at the source, while people who receive income/ payment are liable to pay tax. Now that you know what is TDS and when when TDS should be deducted, let’s read about why TDS is deducted:
- The purpose of TDS is to lower the tax evasion by the recipient of the income because the tax will be collected at the time of making a payment.
- It helps to reduce the burden on Tax Collection Agencies to collect tax
- It acts as a steady source of revenue for the govt.
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What is TDS and why it is deducted?
Manveer
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2021-09-23T12:49:26+00:00 2021-09-28T14:00:24+00:00Comment
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