Meaning
TDS, or Tax Deducted at Source, is an income tax collection mechanism at the payment source.Definition
A payer (deductor) withholds a percentage of specific payments (like salaries, rent) as tax. This amount is then remitted to the government.How It Works
Deductors apply set rates and provide a certificate. Recipients claim this TDS credit when filing their tax returns.Benefits
TDS ensures early government revenue and eases recipient compliance by reducing year-end tax burden.Author
