What is Tax deducted at source and Income Tax

Hi Team,

What is Tax deducted at source and Income Tax?

Regards,
Chethan

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Tax deducted at source: This is the tax that is deducted from your income at the source of that particular income, be it by your employer on salary, or by the bank on deposits. The rate of deduction may vary for different sources and types of incomes. The TDS, however, may not be the total tax that you are liable to pay since you may have other sources of income which invite a higher tax.

Total tax: This is the total tax that you pay on your entire income received from all sources and could be more than the tax deducted at source by your employer or other income sources. This means that TDS will not take care of your entire tax liability and you will have to pay this additional tax as self-assessment or advance tax before filing the returns.

Income tax: Income tax refers to a compulsory contribution levied on individual’s personal income as per his/her earning. There are a standard tax slab rates according to which the money gets deducted from your gross income. In other words, it basically refers to the total tax liability on an individual basis his annual taxable income after considering deductions & exemptions determined at the end of Financial Year.

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Thanks Vijay :slight_smile:

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Thanks Vijay.

helps a lot.

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