FAQ’s
TDS (Tax Deducted at Source) is a means of collecting income tax in India. It is a system where a specified amount is deducted by a person at the time of making payment to another person if the payment exceeds certain thresholds.
TDS is deducted to ensure that tax is collected in advance from the very source of income, which minimizes tax evasion and ensures a steady inflow of revenue to the government.
Certain individuals and entities (like companies, government departments, and businesses) making specified payments such as salaries, interest, rent, professional fees, etc., are required to deduct TDS.