TDS Full Form

TDS is the word used in the context of income tax, full form of TDS is Tax Deducted at Source. While paying income tax one pays tax after receiving income but in case of TDS tax is deducted first and then one gets income so in simple terms one can say that TDS is like advance tax. Given below are some of the examples where TDS is deducted –

  1. Employers cut TDS while paying salaries to their employees when the salary exceeds the level where the employee comes under tax bracket.
  2. Banks also cut TDS on interest which they pay to its fixed deposit holders, if the interest income on fixed deposit by an individual exceeds 10000 rupees then TDS is deducted on excess interest income. Rate of TDS is 10 percent, however if the individual has fixed deposit in two banks then income from interest from both the banks is not clubbed so if an individual who has 10 lakh rupees do not want to pay tax deducted at source then instead of making fixed deposit in one bank he or she can make fixed deposit in 10 banks and hence there will be no TDS on interest income (assuming rate of interest on deposit is 9 percent).
0 comments… add one

Leave a Comment


Related pages


examples current liabilitiesinelastic productsinferior goods examples in economicswhat are the advantages of a traditional economyselling debenturesskimming pricing strategy advantages and disadvantagesforeign exchange quotationhow to record accrued revenuetrial balance accounting definitionlist and describe some advantages of centrally planned economiesdefine a traditional economybarter system definitionconglomerate integration definitionmonopolistic competition meaningearned value management disadvantagespreference shares advantages and disadvantagesproduct bundling strategyunearned fees journal entryconglomerate merger companiesano ang mixed economyadvantages of specialisation economicsadvantages of takeoversjournal entry to record deferred revenuedisadvantages of a monopolyexamples of marginal costingprepaid insurance journal entry examplecomplementary goods exampleproprietorship ratiodisadvantages of monopolycash reserve ratio in indiaadvantages and disadvantages of owners capitaladvantages and disadvantages of capitalismrelevant costing for managerial decisionsmonopoly and oligopolyprepaid insurance journal entry exampleadvantages and disadvantages of lifo and fifo in accountingexplain the law of diminishing returnscapital receipts examplesgolden rules of accounts with examplescalculation of crr and slrlifo methodoligopoly monopolymixed economic system advantages and disadvantageswhats a conglomeratejournal entry for salary receivedadvantages and disadvantages of capitalism and socialismdisadvantages of fdidiminishing balance method depreciation calculationmix of capitalism and socialismprivatization advantagesexamples of conglomerate diversificationdirect vs indirect quotesfull form of tdscagr meaningnormal and inferior goods in economicsexamples of horizontal mergersmixed economies definitionaccounting treatment of contingent liabilitieslimitations of barter systemventure capital pros and conslocational arbitragebenefits of jit inventorymarket skimming pricingrevaluation entriesexamples of normal goodsexamples of job costing and process costingdefinition of derivative marketfullform of fdicrossing chequesfees earned but unbilledadvantages and disadvantages of skimmingtutor2u competitionwhat are the benefits of swot analysisadvantages and disadvantages of short term financingexamples of skimming pricing