What Are the Benefits of TDS Deduction?
The Introduction of TDS Deduction. TDS (Tax Deducted at Source) is an Indian tax collection method in which the deductor (person responsible for making payment) is required to deduct a particular percentage of tax before making payment to the receiver (person receiving payment). The TDS is subsequently deducted and deposited with the government on the recipient's behalf. TDS is levied on a variety of payments, including salary, commission, professional fees, rent, and interest. The applicable TDS rate is determined by the nature of the payment as well as the regulations of the Income Tax Act. project report for TDS deduction entails the following steps. Determination of TDS liability: The deductor must calculate the TDS liability using the rules of the Income Tax Act and the applicable TDS rate. Obtaining PAN: In order to assure correct TDS deduction and deposit, the deductor must collect the recipient's PAN (Permanent Account Number). TDS Deduction: Before making paymen...