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Answer Posted / mahesh ghonge
TDS means Tax Deducted at Source. It means tax on income
deducted there only from where it arises.There r many types
of TDS like TDS on Salary, TDS on Contractors, TDS on
Professional, TDS on Rent etc.
E.g.If X co. is paying Rs.50,000/- to "Y" who is contractor
that time company relase his payment after deducting
respective Tax & same will deposit in Govt.account within 7
days from the month in which Tax has deducted.
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Ram retired from partnership. The partners with mutual consent agreed to put the capital balance as on the date of retirement as loan to the firm @ 18% pa. The credit balance to his capital account was Rs 325000/- Pass necessary entry
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