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Q.

What is TDS and which people are effected?

Asked by Ajoy Banerjee, 18 Jun '07 12:35 pm
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Answers (6)

1.

As the very name suggests, the word "TDS" stands for Tax Deducted at Source. In India, TDS is deducted from various sources like salaries (Section 192) , interest on securities (Section 193), dividends (section 194), interest other than "interest on securities" (Section 194A); winnings from lotteries/crossword puzzles/card games (Section 194B), winnings from horse races (Section 194BB), payments to contractors/sub-contractors (Section 194C), insurance commission (Section 194D), payment out of deposits under National Savings Scheme (194EE) or on account of repurchase of units referred to in Section 80CCB (Section 194EE/Section 194F), commission/brokerage (section 194H), commission on sale of lotery tickets (Section 194G), rent (Section 194I), professional/technical fees (Section 194J), etc.

Tax will be deducted at source whenever the taxable income exceeds the specified limits at the rates prescribed under Schedules to Income Tax Act. After deducting tax, the deductor has to gi ...more
Answered by raghavan pvv, 19 Jun '07 03:31 pm

 
  
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2.

TDS: (Tax deducted at Source)
The person who pays you has to deduct the tax part of your receipt and has to pay the deducted amount to the govt. on behalf of you.

For that you can get Form 16/16A ( aka TDS Certificate) from the payer.

Against that while filing your income tax return, you can claim refunds ( if you have zero tax liability) or you can claim deduction from your gross tax liability and pay the balance to IT Dept.

If everything goes right, no one is affected ?
In fact the govt. has to mess up with the documents and papers.
Answered by Arul Mozhi Varman, 19 Jun '07 11:54 am

 
  
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3.

If the net intrest earned in a single bank account is more than 5,000, as per the IT rule a tax of 10.2% is deducted by the bank and paid to the IT department. If the reciever total income doesnot exceed the tax rebate limit, the amount will be returned by the IT department on filing the tax returns for the financial year.
Answered by Rajendra G Mavinkurve, 19 Jun '07 11:00 am

 
  
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4.

TDS stands for Tax Deducted at Source. There are seven/eight kinds of payment like salary/commision/interest/rent/fees etc. where the payer has to deduct the tax at source and thereafte make payment to the payee. This is responsibility of payers and as such they are affected and payee receives the amount after deduction of tax and therefore, he is also affected.
Answered by Dipak J. Rachchha, 18 Jun '07 01:11 pm

 
  
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5.

What is tds
Answered by slbothra, 05 Mar '10 09:29 pm

 
  
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6.

What the percentage of TDS cut for different section?
Answered by Stmary School, 26 May '12 09:35 am

 
  
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