23 August 2008
i m not geting the concept of tds. when we deduct tds the person who is paying the tds for that person its an exp & the person for whom it is deducted will so it as an tds on receipt and we take the benefit of that.so ultimatly the the tax paid is taken as benefit then whats going in to the hand of govrnment.
23 August 2008
Please note that TDS is been introduced by Income Tax Authorities to check the evasion of income tax by various contractors/professional service providers and other individuals. Tax Deduction at Source has been made a statutory obligation at Company End.Thus if Company is making payment towards services to an individual , it will deduct TDS from his/her payment and submit the same to Government. It's true the individual can claim the benefit of TDS while submitting his/her return but in this way the individuals or so who were earlier not submitting any returns and thus were evading taxes have been nailed. Also PAN No. of Deductees been made compulsory and thus the Government has been able to put a substantial check towards evasion of Income taxes.
CAclubindia
