What kind of account is TDS A/c

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To which category of Accounts does "Tax Deducted at Source A/c" belongs to? Personal, Real or Nominal and why?

Replies (8)

They are usually nominal because taxes are debits and all debits are expenses in profit and loss. If it is put int payables, it will becomes real account. 

Income statement- nominal accounts (all expenses losses, gains and incomes)

Balance sheet- Real accounts (debit what comes in and credit what goes out)

Equity- personal account (debit received, credit giver)

TDS is current assets
TDS IS OUR LOAN & ADVANCES AND ALSO CURRENT ASSET

What? TDS is current asset? Now a days modern college don’t teach that at masters level :) can someone tell me what kind of taxes fall under tds?

Not only equity personal Account , Trade Creditors and Trade Debtors , Bank Account , prepaid  expense  , Accrued  Income , outstanding  expense , Advance received   are also personal Account .
                    TDS deducted by us is liability to pay in GOVT account so it's liability ,on the Contrary TDS deducted by party falls under Asset side because it paid before the assessment paid in advance  . TDS  is fall  under Income Tax at same time  TDS  deducted  under section 51 of the CGST  act  2017 is fall  under GST  . 

                  Income Tax paid  after audit & assessment  is Nominal  Account  

TDS (if Receivable) will come in Assets Side, and can be clubbed with Advance Income Tax finally as this item is also considered as a part of Advance Invoice Tax when computation of Income Tax Payable. It depencds that whether tds is payable or receivable. tds deducted by others on us will be shown in current assets..

Interesting! this means all the companies that I have checked the balance sheet for are very prudent in clearing out their taxes. Cause I never saw such a balance sheet item. Besides, applying the business entity concept, owner is separate from transactions, receivables is real in nature. However, it is acceptable clearly it is personal accounts in nature as well due to stakeholder theory

TDS can be either real, personal or nominal. It totally depends on the nature of transaction. 

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