Income tax & TDS
What is Income tax & TDS?
Income tax is a direct tax levied on individuals or entities based on their income or profits. It is a key source of revenue for governments and is used to fund public services and infrastructure. Tax Deducted at Source (TDS) is a mechanism used by the government to collect income tax at the source of income, requiring the payer of income to deduct tax at applicable rates and deposit it with the government.
How Income tax & TDS Works?
Income tax is levied on individuals or entities based on their income or profits. For individuals, income tax is calculated based on their total income earned during a financial year, which includes income from various sources such as salaries, investments, and business profits. The tax rates vary depending on the income slabs set by the government.
Tax Deducted at Source (TDS) is a mechanism used by the government to collect income tax at the source of income. It requires the payer of income to deduct tax at the applicable rates before making payment to the recipient. For example, employers deduct TDS from employee salaries, banks deduct TDS on interest income, and tenants deduct TDS on rent payments. The deducted tax is then deposited with the government on behalf of the recipient.
Why First Partner?
- Income tax is a tax imposed on individuals or entities based on their income or profits, with rates varying depending on income slabs set by the government.
- Tax Deducted at Source (TDS) is a mechanism used by the government to collect income tax at the source of income, requiring the payer to deduct tax before making payments.
- Our company specializes in income tax and TDS compliance, ensuring that businesses meet their tax obligations and avoid penalties.
- We provide expert advice on income tax planning, helping businesses optimize their tax liabilities and maximize benefits
- With our support, businesses can navigate complex income tax regulations, deductions, and exemptions, minimizing tax liabilities legally.
- Our team stays updated with the latest income tax laws and regulations, providing accurate and timely advice to clients.