How is income tax different from TDS?
How is income tax different from TDS?
Jeeba Jun. 27, 2018
Income tax is a broader concept to the TDS.
Income tax is a tax imposed on individual or body corporate on income or profits earned by them & tax is calculated as per the slab rate prescribed by the income tax department.
TDS is a tax deducted at source that will deposit to the government. It is a tax that is deducted while making the payment to the taxpayer.
While calculating total income and then total tax payable on such income, amount of TDS that deducted from income is reduced from the total tax payable. Thus, it can be said that tds is a part of income tax that deducted at source.
