TDS stands for Tax Deducted at Source, and is a method of collecting income tax in India.
As per the Income Tax Act, any person making any payment is required to deduct tax at source, at the prescribed rates, if the said payment amount exceeds certain specified limits.
TDS is deducted on the following: - Salary - Rent Payments - Rent payments - Commission payments - Interest payment by banks - Consultation fee - Professional fee etc. - The person who makes payment has to deduct the tax at source and deposit it to the govt.
