Diffrance and similarities of advance tax and tds

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Muzaffer A Shirur (Querist)

04 January 2013 Dear sir
what is the exact meaning of TDS and what is similarities between advance income tax and TDS..
And is it necessasary to pay the both..??

Thank you

@VaibhavJ

@VaibhavJ (Expert)

04 January 2013 Hi

TDS is Tax deducted at source, it is also called has with holding tax. i.e. While making payment towards your earnings portion of income is with hold by payee & remitted to government to avoid tax evasion at letter stages. Since activity is taken at source of income accrued it is also called as Tax deducted at Source.

Primary difference Advance Tax is paid by assessee him self & TDS by payee.

I hope i am able to solve ur doubts.

Thanks!!

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CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)

04 January 2013 Dear Friend, The advance tax is payable on your estimated income , but TDS is deducted from the amount you have earned. The TDS will be deducted from the payment or bill you have raised on party. This income is certain. The advance tax will be paid on estimated income , when your tax liability in year is above of Rs. 10,000/-.

Message likes : 2 times

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