Section 203A of ITA, 1961 : Section 203A: Tax Deduction And Collection Account Number
ITA, 1961
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Explanation using Example
Imagine a small business, "XYZ Enterprises," which has recently started hiring employees. As per the Income-tax Act, XYZ Enterprises is now responsible for deducting tax at source (TDS) on the salaries paid to their employees. According to Section 203A of the Income-tax Act, 1961, before XYZ Enterprises can begin the process of tax deduction, they must apply for and be allotted a "tax deduction and collection account number" (...
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