Is TDS mandatory
Yes, TDS (Tax Deducted at Source) is mandatory in certain situations as per the provisions of the Income Tax Act, 1961 in India. It requires the deductor (the person making payment) to deduct a certain percentage of tax from the payment being made and remit it to the government. TDS is applicable on various types of payments such as salaries, interest, rent, professional fees, contractor payments, etc., as specified by the Income Tax Department.
To visit: https://www.incometax.gov.in
The applicability of TDS depends on factors such as the nature of payment, threshold limits, and other conditions mentioned in the Income Tax Act. Failure to comply with TDS provisions can result in penalties and legal consequences. It is important to understand and fulfill the TDS obligations as required by the law. It is advisable to consult a tax professional or refer to the official website of the Income Tax Department for detailed information on the specific situations where TDS is mandatory.
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