In this post, We’ll discuss TDS, or Tax Deducted at Source. We’ll go through everything to know about TDS, including what it is, when it’s used, and how it works.
In which we will look into the following topics in detail:
TDS, or Tax Deducted at Source, is income tax deducted from payments made by a person at the time of such payments, such as rent, commission, professional fees, salary, interest, etc. Usually, the person receiving income is liable to pay income tax
The government ensures, however, that income tax is deducted in advance from payments you make using the Tax Deducted at Source provisions. A recipient of income receives the net amount (after subtracting TDS).
Tax deducted at source is added to the recipient’s income, and the amount of TDS will be added to his final tax obligation. Amounts already deducted and paid on his behalf are credited to the recipient.
New Section 194S: At the time of payment of the transfer of virtual digital assets, a person is subject to a 1% Tax Deduction at Source (TDS).
Sale of immovable property under Section 194-IA: The amount on which TDS should be deducted is recommended to be changed. The individual purchasing the property shall deduct 1% of the amount paid/credited, or the stamp duty value of the property, whichever is greater.
New Section 194R: Any person who provides perks or benefits to any resident, whether convertible into money or not, for carrying on any business or profession by such resident should deduct TDS at a rate of 10%.