What is the difference between tds and income tax?

Question

if we calculate tds thn do v hve to calculate income tax?

Answer 1

TDS is Tax Deducted at Source. When somebody else deducts tax from your income, at source, and deposits it with IT dept, then you will get a TDS certificate from that source.

When you pay income tax to IT dept on your own, it is self assessment tax.

At the end of the FY when you fill your ITR form correctly, you will know your tax liability.

If TDS is less than tax payable, then you have to pay the add. tax due.

If TDS is more than tax payable, then you get a refund.

Answer 2

TDS is Tax Deducted at Source. It is a part of income tax. If your income exceeds the taxable income limit, your employer will deduct tax every month provisionally or at the end of financial year from your salary itself. At the end of financial year when you file IT return, you have to calculate the final Income tax payable by you for the whole year. If it exceeds the TDS, you have to pay byn Challan in Bank. If the IT falls short of that collected by your employer you can claim refund from the IT department.

Answer 3

For the current TDS rates in India, and more information about TDS deduction and filing, read http://mytaxes.in/index.php?topic=8.0