Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

What is the fullform of TDS?

Options:

Tax dividend at source

Tax deducted at source

Tax dividend supply

Tax deduction supply

Correct Answer:

Tax deducted at source

Explanation:

TDS (Tax Deducted at Source) in the context of debentures refers to the practice of deducting a certain amount of income tax at the source when interest is paid to debenture holders by the company issuing the debentures.