What is TDS ? Gave a TDS entry

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TDS stands for Tax Deducted at Source. It is a tax collected by the government at the time of payment.

TDS is a tax collected by the government at the time of payment.
It is deducted from the payment made to the recipient.
The person making the payment is responsible for deducting TDS and depositing it with the government.
TDS is applicable on various types of payments such as salary, rent, commission, etc.
The TDS entry in the books of accounts will show the amount deducted and deposited with the government.
For example, if a company pays a salary of Rs. 50,000 to an employee and the TDS rate is 10%, then the company will deduct Rs. 5,000 as TDS and deposit it with the government.
The TDS entry in the books of accounts will be: Debit - Salary Expense (Rs. 50,000), Credit - TDS Payable (Rs. 5,000)

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