TDS

Definition	:	Tax Deducted at Source
Category	:	Governmental » Rules & Regulations
Country/Region	:	India
Popularity	:
Type	:	Initialism

What does TDS mean?

Tax Deducted at Source (TDS) was introduced by the Income Tax Department of India with an aim to collect tax from the very source of income. In the TDS system, the deductor (company or person) responsible for making specified payments such as salary, commission, professional fees, interest, and rent is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment and remit the deducted tax amount into the account of the government.

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