Who is to deduct TDS? (All About TDS - A Simple Guide)

Who is to deduct TDS?

All About TDS - A Simple Guide

Confia Interactive - Finance Updates

In our last post, We tried to understand about What is TDS? Today, Lets try to understand, who is to deduct TDS? Lets try to understand the same from salary Point of view.

The statute requires deduction of tax at source from the income under the head salary. As such the existence of “employer-employee” relationship is the “sine-qua-non” for taxing a particular receipt under the head salaries. Such a relationship is said to exist when the employee not only works under the direct control and supervision of his employer but also is subject to the right of the employer to control the manner in which he carries out the instructions. Thus the law essentially requires the deduction of tax when;

(a) Payment is made by the employer to the employee.

(b) The payment is in the nature of salary and

(c) The income under the head salaries is above the maximum amount not chargeable to tax.

Hope, This was helpful to you. We will be posting few more informative updates in this series of"All about TDS - A Simple Guide."

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Confia Finance Team

Confia Interactive

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