TDS Full Form In English
TDS* stands for Tax Deducted at Source. It is a means of collecting income tax in India, where a certain percentage of tax is deducted at the point of payment, rather than collecting the entire tax at a later date. The person making the payment (payer) is responsible for deducting tax before making the payment to the recipient (payee) and then depositing it with the government.
TDS applies to various types of payments such as salaries, interest, rent, commission, professional fees, and more. It helps in regular collection of taxes and reduces tax evasion by spreading tax collection throughout the year.
If your employer pays you a salary of ₹50,000 and TDS rate is 10%, the employer deducts ₹5,000 as TDS and deposits it with the government. You receive ₹45,000, and the ₹5,000 is considered your advance tax paid.
TDS Full Form In Hindi
TDS का फुल फॉर्म है स्रोत पर कर कटौती (Tax Deducted at Source)। यह भारत में आयकर वसूलने का एक तरीका है, जिसमें भुगतान करने से पहले ही कर की एक निश्चित राशि काट ली जाती है। भुगतान करने वाला (payer) कर को काटकर सरकार के पास जमा करता है और शेष राशि प्राप्तकर्ता (payee) को देता है।
TDS विभिन्न प्रकार के भुगतानों पर लागू होता है जैसे कि वेतन, ब्याज, किराया, कमीशन, पेशेवर शुल्क आदि। इसका उद्देश्य पूरे वर्ष में कर वसूली करना और कर चोरी को रोकना है। अगर आपका वेतन ₹50,000 है और TDS दर 10% है, तो नियोक्ता ₹5,000 TDS के रूप में काटकर सरकार में जमा करेगा। आपको ₹45,000 मिलेगा और ₹5,000 आपके अग्रिम कर के रूप में गिने जाएंगे।
Read More: BCI Full Form In English And Hindi
Frequently Asked Questions
Who is responsible for deducting TDS?
The payer (employer, bank, company, etc.) is responsible for deducting TDS.
Is TDS applicable to everyone?
TDS is applicable when payments exceed a certain threshold as defined by the Income Tax Department.
Can TDS be claimed back?
Yes, if excess TDS is deducted, you can claim a refund while filing your income tax return.
Does TDS apply to interest income?
Yes, banks and financial institutions deduct TDS on interest if it exceeds the prescribed limit.
Conclusion
TDS or Tax Deducted at Source is a crucial tool in India’s tax system, ensuring regular tax collection and preventing tax evasion. Both individuals and businesses must understand TDS rules to comply with tax regulations and claim refunds where applicable.