Meaning
TDS, or Tax Deducted at Source, is a system for collecting income tax.Definition
TDS (Tax Deducted at Source) is when a payer deducts a percentage of certain payments as tax, depositing it with the government.How It Works
For payments like salaries or professional fees exceeding limits, the payer deducts a set amount as TDS. This is submitted to tax authorities; the recipient gets credit for this pre-paid tax.Purpose
Its purpose is to collect tax at the income’s source, ensuring steady government revenue and promoting tax compliance.Author
