What is Tax Deduction at Source or TDS?

Created by Product Content Team, Modified on Wed, 13 Mar at 5:23 PM by Product Content Team


Tax Deduction at Source (TDS) is a mechanism implemented by the tax authorities in many countries to collect taxes at the source of income. It requires the person making a payment to deduct a certain percentage of the payment as tax and remit it to the government on behalf of the recipient. TDS applies to various types of income, such as salaries, interest, rent, professional fees, commissions, and others.


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