What is TDS?
TDS (Tax Deducted at Source) is a system made under the Income Tax Act, in which tax on a fixed payment is deducted at the time of giving the money. When a person or organization pays an amount like salary, rent, interest, commission or professional fee to someone, then it first deducts the tax as per the fixed rate and gives the remaining amount to the recipient of the payment. The person deducting the tax is called Deductor and the person whose tax is deducted is called Deductee. Later The purpose of TDS is to collect the tax at the time of earning and not later.