TDS Stands For

TDS stands for Tax Deducted at Source. It is a type of tax that is deducted by the payer at the time of making a payment to the recipient, and is then paid to the government on behalf of the recipient. TDS is deducted from various sources of income such as salary, interest, rent, commission, and others, and is governed by the Income Tax Act, 1961 in India. The purpose of TDS is to ensure regular payment of taxes and to reduce the burden of tax payment on the taxpayer.

Q: Who is responsible for deducting TDS?

A: The person or organization making the payment is responsible for deducting TDS. For example, an employer deducts TDS from the salary of an employee, or a bank deducts TDS from the interest earned on a fixed deposit.

Q: What are the different types of payments that are subject to TDS?

A: TDS is applicable on various types of payments, such as salary, interest, rent, commission, professional fees, and others.

Q: What is the rate of TDS?

A: The rate of TDS varies depending on the type of payment and the income of the recipient. The rates are prescribed by the Income Tax Act, 1961 and are subject to change from time to time.

Q: How is TDS calculated?

A: TDS is calculated as a percentage of the total payment amount. For example, if the TDS rate is 10% and the payment amount is Rs. 10,000, then the TDS deducted will be Rs. 1,000.

Q: How can I check if TDS has been deducted from my income?

A: You can check your TDS deduction status by logging into your account on the Income Tax Department's website or by checking your Form 26AS.

Q: Can I claim a refund of TDS?

A: Yes, you can claim a refund of TDS if the TDS deducted is more than the actual tax liability. You can do this by filing an income tax return.

Q: What happens if TDS is not deducted?

A: If TDS is not deducted when it is supposed to be, the payer may be liable to pay interest and penalty.

Q: Can TDS be reduced or waived off?

A: Yes, TDS can be reduced or waived off if the recipient provides the payer with a valid certificate from the Income Tax Department, such as a certificate of non-deduction or lower deduction.

TDS has many abbreviations such as:

TDS stands for Medical: ter die sumendus

TDS stands for Water: Total Dissolved Solids