In India, tax deduction at source (TDS) is a way of collecting taxes from income, dividends, or asset sales. It works by requiring the payer to deduct the tax amount before giving the remaining money to the recipient.
Advantages of TDS
- It prevents people from evading taxes.
- It ensures a steady source of revenue for the Government.
- Widened the tax collection base.
- The burden of responsibility of the Tax Collection Agencies and the Deducter are lessened.
- Automatic tax deduction makes it convenient for the taxpayer.
Disadvantages of TDS
- The great disadvantage of a direct tax is that it pinches the payer.
- Taxes may discourage people from working harder.
- The direct- taxes are thus very inconvenient to pay.
About Finline!
Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you must have a well-crafted project report. We, at Finline help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.