What is meant by TDS?

financial term,accounting,deduction,how is the deductiondone ,refundable,what percentage.

TDS is Tax deducted at source.
If 10 % TDS is deducted and you have no other taxable income then you get full refund when you file income tax returns with documentry proof of having paid TDS.

TDS stands for Tax Deducted at Source.

The percentage depends on various items that are taxed. For salaried, it is the entire tax payable deducted as TDS and for other services, the slabs are different from 2% to 15%.

You can get more info on this from the below mentioned website.

tax deduction system

Scheme for Electronic Filing of TDS returns:The scheme for electronic filing of TDS returns was notified on 26.8.2003. The Board Circular No.8 dated 19.9.2003 clarifies the procedure in this regard. The procedure basically envisages that corporate deductors will prepare their TDS returns in the new TDS return Forms 24, 26 or 27, according to the data structurenotified by e-Filing Administrator. The e-TDS returns in the prescribed data structure stored on CD ROM and supported by a duly signed control chart inForm27A in paper format will be submitted to an e-TDS Intermediary appointed by the Board

TDS means, Tax Deduction at Source, tax is deducted at the rate prescribed u/s 192 to 206 of IT Act 1961, at the source of Income.
There is no percentage of refund, if the annual tax payable is less than the amount of Tax Deducted at Source (TDS), then the amount by which it is less is Refundable. Otherwise if TDS is less than the Tax payable then No refund will be allowed.

Tax Deduction at Source....the rest of your question is a tough one, consult your CA for a complete breakup of your salary..

TDS means Tax Deducted at Source. This indicates the tax deducted by your employer, organisation ,or your own voluntarily remittance of tax from your monthly/quarterly/yearly earnings.Against this deduction your final statement of tax deducted is submitted at the end of the financial year in appropriate form [form 16 or saral] with additional amount as arrears if any or claim for refund as per the exisisting rules for excess tax paid.This is called filing of return.

Tax Deducted at Source or abbreviated form of â€˜TDSâ€™ is the method where the tax on the income earned during the financial year is deducted at source. In other words, it is the logic of â€œ pay while you earnâ€. It is an indirect method of collection of taxes. In our country it is called tax deduction at source and in other countries it is called as refundable withholding taxes and non-refundable withholding of taxes. In this system, the tax is paid on behalf of the earner by the payer and relevant form i.e. Form No.16 ( in case of salary earnings ) and Form No.16A ( in case of non-salary payments) as the case may be is issued to the person on whose behalf tax is deducted by the DDO. The rates are:-
1. The rate of deduction of tax at source w.e.f. 1st April, 2007 are as under :
(i). Payment to Contractors
Tax : 2% Surcharge : 10% of Tax
Education Cess : 3% of tax and surcharge.

(ii). Payment to Sub-Contractor
Tax : 1% Surcharge : 10% of Tax
Education Cess : 3% of Tax & surcharge

(iii). Payment of interest
A. If paid to a person other than a company
Tax : 10% Surcharge : 10% of tax
Education Cess : 3% of Tax & Surcharge

B. If paid to a company
Tax : 20% Surcharge : 10% of Tax
Education Cess : 3% of tax and surcharge

(iv). Payment for Professional/Technical Services/Commission/ Brokerage
From 01.04.2007 to 31.05.2007
From 01.06.2007 onwards
Tax Rate 5%
Tax Rate 10%
Surcharge 10% Tax
Education Cess 3% of the Surcharge
Education Cess : 3% of Tax & Surcharge
Overall TDS Rate 5.665% if surcharge is applicable otherwise 5.15%
Overall TDS rate 11.33% if surcharge is applicable, otherwise 10.30%

(v). Payment of Rent for Land and Building
A. If paid to an individual or HUF
Tax Rate : 15% Surcharge : 10% of Tax
Education Cess : 3% of tax & surcharge

B. If paid to a person other than individual or HUF
Tax Rate : 20% Surcharge : 10% of Tax
Education Cess : 3% of Tax & Surcharge

(vi). Payment of Rent for Plant and Machinery
From 01.04.2007 to 31.05.2007
From 01.06.2007 onwards
Tax Rate: 15% if paid to individual or HUF
: 20% if paid to a person other than Individual and HUF
Tax Rate : 10% for all
Surcharge 10% Tax
Education Cess : 3% of Tax and Surcharge
Education Cess : 3% of Tax & Surcharge

(vii) Salaries

Tax to be computed at normal rate on the basis of following table.
Basic Exemption Rs.1,10,000/-
From 1,10,000/- to 1,50,000 @ 10%
1,50,000/- to 2,50,000 @ 20%
2,50,000/- onward @ 30%

Surcharge to be levied @ 10% in case taxable income exceeds Rs.10,00,000/-. Education Cess to be added @ 3%.
However Basic Exemption for Woman Tax Payers shall be Rs.1,45,000/- and for Senior Citizen Rs.1,95,000/-
2. Education Cess @ 3% is applicable with effect from 1.4.2007.
3. Surcharge for deducting tax at source shall be leviable in case where payment is made to an individual or HUF, AOP or body of individual when aggregate amount paid or likely to be paid and subject to tax deduction exceeds Rs.10 lakhs, in case payment is made to a firm or a domestic company when aggregate amount paid or likely to be paid exceeds Rs.1 crore. In the case of payment to other than a domestic company the surcharge shall be levied @ 2.5%. Applicability of surcharge, in case payment exceeds the above prescribed limit is effective from 01.04.2007.
4. Change in rate of deduction of tax at source on payment of commission, brokerage, and professional/technical services, rent shall be effective from 01.06.2007.
5 Applicability of increased limit of Rs.10,000/- for non deduction of tax in respect of payment of interest by bank shall be effective from 01.06.2007.
6. Applicability of leviability to deduct tax at source on payment by individual/HUF having turnover exceeding the limit prescribed in Section 44AB in respect of payment to contractors shall be effective from 1st June, 2007.

TDS is Tax deducted at source. When some company or trading partner (having a TIN number) makes a payment to you, they have to deduct tax amount on it (if the payment is above Rs.5000) and give a TDS certificate. They have to deposit this amount in bank. For salaried people, their employers are supposed to deduct tax if they are paying more than Rs.100000 as salary in a gievn financial year.

tds means tax deducted at source and it should be deductedbale only if your eligable for tax. the tax percentage is 5.4

Ummmm... i neva knew that it was related to accountin!
js cz im health sciences field, we were taught that TDS means Time Distance and Shielding against ionisin radiation...

dont think that helped though!

this may stand 4 todays daily special

at that point tax is deducted where the income is arising. i.e. whenever you pay any expenses or you earn any income, you will pay the expenses after deducting tax or you will get income after deducting tax at source. so you should not pay the tax on that income on which tax is already paid.
Thanks,
Ashok

TDS refers to Tax Deducted at Source. that means, if you are a salaried person, every month your employer deducts a certain amount (calculated according to your pay) and deposits to Income Tax Dept on your behalf.
in the end of the financial year, the employer will issue a Form 16 which conatins a summary of the amount paid to IT Dept. with this Form 16, you can file your IT returns. if you have any income other than salary, you need to pay income tax for that as well since this won't come under TDS.

thanks Mr. Sharma nicely u explained the meaning of tds ..................

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