What is TDS? where do you show TDS in balance sheet ?

Question

Accepted Answer

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

TDS is deducted by the payer while making certain payments like salary, rent, interest, etc.
It is deducted at a specified rate and deposited with the government.
TDS is reflected in the balance sheet as a liability under the head 'TDS Payable'.
The amount of TDS deducted is shown as a reduction in the respective expense or income in the profit and loss statement.
The TDS liability is adjusted against the final tax liability of the recipient.

Accepted Answer

when we put TDS accrued due amount in assets column in balance sheet but in receipt and payment side the profit is not tallying with Balance sheet

Accepted Answer

TDS (Tax Deducted at Source) is a concept aimed at collecting Tax at every source of income. In balance sheet, it is shown in the assets section, right after the head current asset.

What is TDS? where do you show TDS in balance sheet ?

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