What is TDS? Where do you show TDS on a balance sheet?

Question

Accepted Answer

TDS stands for Tax Deducted at Source. It is a tax collection mechanism in India.

TDS is the amount deducted from payments made by a person or entity to another person or entity.
It is deducted at the time of making certain payments like salary, rent, commission, etc.
TDS is deducted as per the rates prescribed by the Income Tax Act.
The person deducting TDS is required to deposit it with the government and issue a TDS certificate to the payee.
On a balance sheet, TDS is shown as a liability under the head 'Current Liabilities and Provisions'.

Accepted Answer

TDS shows in Duties & Taxes under current Liabilities

Accepted Answer

TDS (Tax Deducted at Source)the assets section, right after the head current asset TDS Return is a quarterly statement submitted by the deductor to the Income Tax Department. The statement shows a summary of all the entries for TDS collected by the deductor and the TDS paid by the deductor to the Income Tax Authority

What is TDS? Where do you show TDS on a balance sheet?

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