TDS Full Form
The Full form of TDS is Tax Deducted at Source. TDS is one of method used for collecting income tax in India. It is governed under the Indian Income Tax Act 1961 and managed by Central Board of Direct Taxes (CBDT). Under this act, any payment covered under these provisions shall be paid after deducting prescribed percentage. It is a part of the Department of Revenue and managed by Indian Revenue Service (IRS). In an organization, the employer collects tax from their employee and sends it directly to the income tax department. This tax has to be deposited in treasury of Indian Government within a specified time. There is no uniform rate of deduction for this tax. It may be ranged from 1% to 30% or more, depending on the entity on which it is applicable. There are two identities involved in the process of TDS; one is Deductor and the other is Deductee. The Deductor is a person or a company/organization who is responsible for deducting the money (taxes) before the payment is made and the Deductee is the person who is liable to pay the tax or from whom the tax is deducted.