Tax Deducted At Source

TDS (Tax Deducted at Source) is a system where tax is deducted at the point of income generation, rather than at the end of the financial year. It is a way of collecting income tax in India, where the payer deducts tax at the source of income and remits it directly to the government on behalf of the payee.

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FAQ about Tax Deducted At Source

TDS (Tax Deducted at Source) is the tax deducted by the payer at the time of making certain types of payments, like salaries, rent, or interest, and deposited with the government.

The payer (employer, business, etc.) is responsible for deducting TDS before making the payment to the payee.

The deducted amount is deposited directly to the government’s account by the payer, usually within a specific time frame.

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