Quick Summary
TDS is a means of collecting income tax at the source of income. The payer deducts tax and deposits it with the government.
Tax Deducted at Source (TDS) requires the payer to deduct tax before making certain payments like salary, rent, professional fees, and interest. The deducted tax must be deposited with the government.
Key Points
- Tax deducted at point of payment
- Applicable to salary, rent, professional fees
- TAN required for deducting TDS
- Quarterly TDS returns must be filed
- TDS credit available to recipient