Tax Deduction at Source(TDS)

TDS is one of the method of collecting Income-Tax under certain circumstances from the assessee. If any specified type of income arises to any person, the Income-Tax Act requires the payer(deductor) of such income to deduct a stipulated percentage of such income at the time of making payment. Only the balance amount is paid to the receiver. The amount deducted as TDS has to be deposited into the Government Treasury, within a specified time.

The TDS is treated as Income Tax payment by the receiver at the time of assessment. A TDS certificate is to be given to the receiver.

Some of the incomes are - salary, interest, dividend, interest on securities, commission and brokerage ,etc