A STUDY ON CHALLENGES FACED BY EMPLOYEES WORKING IN THE FIELD OF ACCOUNTS, TAX AND FINANCE IN UNDERSTANDING TDS PROVISIONS

The word “TDS” is an abbreviation used for “Tax Deduction at Source”. TDS needs to be deducted by the deductor in respect of specified transactions made by them. Every deductor is responsible to deduct TDS on specified transactions and deposit the same with the Income Tax Department within the given period of time failing to which they are liable to pay penal interest. Almost every year there are some changes generally made by the government in TDS provisions be it a threshold limit, rate of TDS, exclusion or inclusion of nature of transactions in the purview of TDS. Those who become defaulter in correctly deducting TDS or depositing the same with the government are liable to be penalized and also not getting full benefit of expense deduction at the time of income computation and payment of taxes. Therefore, deductor and their accounts team should have up to date knowledge of TDS provisions to avoid penal charges and other liabilities on account of becoming a defaulter whether by intentionally or inadvertently. However, constant amendments in TDS provisions by the government make it complex in nature for a layman to understand. This study aims to find out perception of employees working in accounting fields towards constant amendments in TDS provisions and challenges faced by them. KEYWORDS: Income Tax, Tds, Tax Deducted At Source.