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What Is Tax Deducted At Source With Example
What Is Tax Deducted At Source With Example -
Tax Deducted at Source TDS is a system introduced by Income Tax Department where the person responsible for making specified payments such as salary commission professional fees interest rent etc is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment
TDS stands for Tax Deducted at Source a provision under the Indian Income Tax Act where a percentage of your income such as salary consulting fees or bank interest is taken out before you receive it The deducted amount is deposited with the Income Tax IT department TDS applies to individuals and businesses
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TDS refund is the refund issued by the income tax authority when your TDS deducted or advance taxes paid exceeds your actual tax liability When you earn any income like salary house rent interest etc TDS is deducted by the payer and the deducted amount is further remitted to the government
It applies to various sources of income such as salaries interest from fixed deposits commissions dividends rent professional fees etc It is not applicable to all people transactions or incomes That said the TDS
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Example of Tax Deducted at Source TDS has to be deducted at the applicable rates only For example the TDS rate on rent payments to resident individuals and HUFs by resident individuals and HUFs is 5 when the rent is more than Rs 50 000 p m
Components of TDS According to the Income Tax Act there are different types of payments where taxes are eligible to be deducted Some examples of such payments are salary interest professional fees rent winnings such as lottery and races royalties contractor fees commission and more
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https:// fi.money /blog/posts/how-to-calculate-tds...
TDS stands for Tax Deducted at Source a provision under the Indian Income Tax Act where a percentage of your income such as salary consulting fees or bank interest is taken out before you receive it The deducted amount is deposited with the Income Tax IT department TDS applies to individuals and businesses
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https:// cleartax.in /s/tds
Tax liability in a case where TDS is already deducted from Income On salary TDS is deducted based on the income tax slab applicable to you In the case of other income types the TDS rates are fixed and vary between 10 and 20 The tax rates are not based on your total income Hence you would suffer a TDS on your receipts in
TDS stands for Tax Deducted at Source a provision under the Indian Income Tax Act where a percentage of your income such as salary consulting fees or bank interest is taken out before you receive it The deducted amount is deposited with the Income Tax IT department TDS applies to individuals and businesses
Tax liability in a case where TDS is already deducted from Income On salary TDS is deducted based on the income tax slab applicable to you In the case of other income types the TDS rates are fixed and vary between 10 and 20 The tax rates are not based on your total income Hence you would suffer a TDS on your receipts in
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