Question { Microsoft, 301496 }

What is TDS

Answer

Tax deducted at source means tax required to be paid by the assessee, is deducted by the person paying the income to him. Thus, the tax is deducted at the source of income itself. The income tax act enjoins on the payer of such income to deduct the given percentage of income as income tax and pay the balance amount to the recipient of such income. The tax so deducted at source by the payer is to be deposited in the same in the income tax department account. The tax so deducted from the income of the recipient is deemed payment of income tax by the recipient at the time of his assessment.

For Example :

1. A seller ( deductee ) provides services to the buyer ( deductor )Bill No: 118/2010-2011 for Rs 50,000

2. The buyer deducts the tax at the time of payment of advances or while accounting the bills recieved. ( Rs 50,000-Rs 5665 {tds} =Rs 44335

3. The buyer deposits the deducted amount to the designated branches of the athorised bank (TDS amount remitted to bank Rs: 5665 through challan No: ITNS 281 )

4. The buyer issues form No: 16A to the Deductee

5. The buyer files annual returns electronically to the income tax department

6. The seller files returns, along with Form 16A claiming the credit of the Tax Deducted at Source

TDS amount shall be paid to the credit of Government on or Before 7th of the next month through any designated branches of the authorised banks, along with Income Tax Challan No: 281
Joseph Nelgin.....nelgin8@gmail.com

Question { TATA, 71301 }

what is the Entry for Prepaid expenses? which side it come
in balance sheet?

Answer

the 6th answer is the right one by mr soundar