What are the advantages and disadvantages of TDs?
Advantages of Tax deducted at source (TDS) 1 It helps to prevent tax evasion. 2 As TDS deductions take place throughout the financial year, it s an effective mode of revenue inflow to the government. 3 It widens the tax collection base. 4 It is a way to share the responsibility of tax collection between the government and the deductors.
What are the advantages of collecting TDs?
The advantages of collecting TDS are highlighted below: It prevents people from evading taxes. It ensures a steady source of revenue for the Government. The Tax Collection base is widened. The burden of responsibility of the Tax Collection Agencies and the Deductor are lessened. It is convenient for the deductee as Tax is automatically deducted.
What are the disadvantages of high TDS in drinking water?
Though these levels arent harmful to ones health, they do have some disadvantages. High levels of TDS compromise the taste of drinking water. Water may taste acidic, salty, or brackish depending on the amount of TDS. Water with high TDS is safe to drink but there are chances of it containing hazardous substances like lead or copper.
What is TDs in income tax?
TDS is one of the tax collecting method used in India. It is governed under the Indian Income Tax Act 1961 and managed by Central Board of Direct Taxes (CBDT). Tax Deducted at Source or TDS is a way of collecting indirect tax by The Government of India, as per the Income Tax Act, 1961.
Why total dissolved solids (TDS) meter?
Total dissolved solids (TDS) meter measures water quality which has many advantages (i.
What is a TDS exception?
TDS exception is essentially a mechanism developed by the Indian Government where in there is a tax deduction at the source of an income, calculated at a specific rate and thereby becomes payable to the department of Income Tax.
What is TDs exemption certificate?
TDS Exemption Certificate. TDS stands for Tax Deducted at Source. The person making payment to other person is required to deduct TDS and deposit the same to the Government of India as per applicable provision on Income Tax Act, 1961 and read with Rules, 1962.
What is TDs and TDs return?
TDS – What is TDS? Tax Deducted at Source, TDS File, TDS Return TDS is the amount of tax which is deducted by the employer or deductor from the taxpayer and is deposited to the Income Tax Department on behalf of him/her.
What is an example of TDs?
TDS – Tax Deducted at Source 1 Example of TDS. Lets assume that a start-up company pays Rs.
Is TDS deducted on investment proofs?
For the majority of payments, TDS rates are set in the Income Tax Act the payer deducts TDS as per the rates applicable. You will not be required to pay any tax if you submit your investment proofs to your employer and your total income that can be taxed is below the total taxable threshold. Thus, no TDS will be deducted in this case.