TDS (Tax Deducted at Source)
Tax withheld at the point of payment on certain transactions, remitted to authorities by the payer on behalf of the recipient.
What is TDS (Tax Deducted at Source)?
TDS (Tax Deducted at Source) is tax withheld when making specified payments: salaries, contractor fees, rent, professional services. The payer deducts tax and remits it to the government; the recipient receives net amount.
For businesses, TDS creates dual tracking: amounts owed to recipients and amounts owed to tax authorities on withholding schedules.
TDS timing affects cash outflows on specific dates, independent of when the underlying expense is recognized.
Why it matters
Missing TDS deadlines creates penalties and cash surprises. Contractor payments that require TDS must be modeled with both the net payment and the withheld amount remitted to authorities.
Including TDS in cash forecasts prevents overestimating deployable cash.
How RunwayCal helps
RunwayCal schedules TDS and tax obligations as treasury outflows on due dates, updating True Cash Position and cash forecasts.
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Model TDS in cash planning
Track TDS obligations as scheduled outflows so cash forecasts reflect tax remittance dates.
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