Where to show TDS in the balance sheet

Tax Deducted at Source (TDS) is an advance tax that is deducted from various types of income, such as salaries, interest, dividends, and payments to contractors. In the balance sheet, TDS can be shown under different headings depending on the context and the role of the entity (deductor or deductee). Here’s how TDS is typically represented:

### For the Deductee (the entity from whose income TDS is deducted):

1. **Current Assets**: TDS receivable is shown under the "Current Assets" section as "TDS Receivable" or "Advance Tax." This represents the amount deducted and paid to the government on behalf of the deductee, which can be claimed as a tax credit when filing the income tax return.

   - **Example**:
     ```
     Current Assets
     - TDS Receivable (or Advance Tax)
     ```

### For the Deductor (the entity that deducts TDS):

1. **Current Liabilities**: TDS payable is shown under the "Current Liabilities" section as "TDS Payable" or "Statutory Dues Payable." This represents the amount deducted from various payments, which the deductor needs to deposit with the government.

   - **Example**:
     ```
     Current Liabilities
     - TDS Payable (or Statutory Dues Payable)
     ```

### Detailed Breakdown:

- **TDS Receivable (Asset)**: When an entity has income from which TDS has been deducted, the amount of TDS can be claimed as a credit against the total tax liability. Until it is claimed, it is considered a receivable from the government.
  - This would be listed under "Loans and Advances" or "Other Current Assets" in the "Current Assets" section of the balance sheet.

- **TDS Payable (Liability)**: When an entity deducts TDS from payments made to others, it holds this amount until it is deposited with the tax authorities. This is a liability until the payment is made to the government.
  - This would be listed under "Other Current Liabilities" or "Statutory Dues" in the "Current Liabilities" section of the balance sheet.

### Example Entries:

**Balance Sheet for the Deductee:**

```
Balance Sheet (as of [Date])

Assets
- Current Assets
  - TDS Receivable (or Advance Tax): [Amount]
  - Other Current Assets: [Details]

Liabilities
- Current Liabilities
  - Other Current Liabilities: [Details]
```

**Balance Sheet for the Deductor:**

```
Balance Sheet (as of [Date])

Assets
- Current Assets
  - Other Current Assets: [Details]

Liabilities
- Current Liabilities
  - TDS Payable (or Statutory Dues Payable): [Amount]
  - Other Current Liabilities: [Details]
```

In summary, TDS is shown under current assets as TDS receivable for the deductee and under current liabilities as TDS payable for the deductor. This helps in reflecting the accurate tax position of the entity on the balance sheet.