What is TDS and how does it work? सविस्तर माहितीसाठी इकॉनॉमिक टाइम्स मधील बातमी वाचावी.

TDS is an abbreviation for ‘Tax Deducted at Source’. TDS has been introduced to collect tax from the source from where an Individual’s income is generated.

The government uses TDS as a tool to collect tax so as to minimize the tax evasion by taxing the income (partially or wholly) at the time it is generated rather than at a later date.

TDS is applicable on the various incomes received such as salaries, interest received, commission received etc.

TDS is not applicable to all incomes and all persons for all transactions. Different rates of TDS have been prescribed by the Income Tax Act for different payments and different categories of recipients. For example, payment of redemption proceeds by a debt mutual fund to a resident individual is not subject to TDS but for a Non-resident Indian is subject to TDS.

via TDS: What is TDS and how does it work?