Understanding TDS: Definition, Types, and Advantages

The responsibility of paying income tax lies with the individual or entity receiving income. However, Tax Deducted at Source (TDS) ensures that the tax is deducted from the payment in advance. TDS is a mechanism by which the government ensures collection of tax. It is deducted by the payer at the time of making payments such as salary, interest, commission, brokerage, rent, etc. and is deposited with the government on behalf of the recipient. Learn more about TDS and its implications on our comprehensive guide.