Tax Professional Blogs

When companies do not reconcile their books of accounts and government records on Form 26AS, they run the risk of losing their tax credits (TDS and TCS). The year-on-year TDS credit lock-up indicated inefficiencies in working capital, so CFOs and tax heads of organizations should think about that major concern. In addition to tax credits, it would be a fit case of under-reporting of income during a period of tax investigation if the revenues reported in the income return are lower than those shown in Form 26AS and the credits are taken according to Form 26AS. In this article, we explain five digital management, proper validation of data systematic, processes for recording every transaction, etc.

A section called TDS appears on every payslip of a salaried individual. Tax Deducted at Source is also known as TDS. The Central Board of Direct Taxes (CBDT) in India handles tax deduction policies and regulations. A TDS is a tax deducted at the point of income generation, as defined by the Income Tax Act. Tax is deducted by the employer/deductor and paid to the government on behalf of the deductee/taxpayer. This blog explains the TDS working process and its benefits.

There are two common terms taxpayers frequently face which are income tax and tax deducted at source (TDS). Basically, an income tax and TDS may sound similar, but they differ greatly. When it comes to calculating each tax, there is a different mechanism. A salary person is therefore advised to avoid confusion regarding these terms before filing tax returns, as well as to understand their implications and relevance. In this article, we have discussed a brief difference between income tax and TDS.