TDS
Also known as: Tax Deducted at Source
TDS (Tax Deducted at Source) is income tax withheld by the payer at the time of certain payments — salary, contractor fees, rent, professional fees — and deposited with the government on the payee's behalf.
The deductor must hold a TAN, deduct at the prescribed rate, deposit the tax (generally by the 7th of the next month), and file quarterly TDS returns. The payee claims the deducted amount as a credit against their final tax liability, visible in Form 26AS / AIS.
Related terms
General information, not tax, legal or accounting advice. Thresholds and timelines change by notification — confirm applicability with your CA, CS, or lawyer.
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