Tds justification

516 views 2 replies

Respected Members,

We all know that TDS, Advance Tax & Self-Asessment Tax are all different froms of income tax, which is a direct tax, which means the impact & incidence of tax is on the same person. But as far as TDS is concerned, its impact is on the tax payer but incidence is on the tax deductor. Then how it can be justified as a direct tax?

 

Replies (2)
Tds is the direct tax because in indirect tax the incidence of tax is passed on buyer and tax is finally borne by consumer. And in case of tds the person on whom tax is levied has to bear the burden of tax he will can't be able to pass the burden Due to this tds is direct tax
T.D.S. is direct income tax of deductee as it is reimbursed by deductor on behalf of deductee.


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