TDS & professional Tax
- TDS – TDS is a source of collecting tax by Government of India at the time when a transaction takes place. Here, the tax is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier. Tax is deducted usually over a range of 1% to 10%.
- Professional Tax – Professional tax is the tax levied by the state government on all the salaried individuals working in government or non-government entities or practicing professionals like C.A., Law, Medicine, Consultant, Technician, etc. or carrying out any other form of business. Professional tax is deducted from the salary of the employees and the same is deposited with the state government. Different states have different rates and methods of collection.