Understanding TDS: What is the Full Form of Tax Deducted at Source?

Learn about TDS, the full form of Tax Deducted at Source, and its significance in income tax collection in India.

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TDS stands for Tax Deducted at Source. It is a means of collecting income tax in India, whereby a certain percentage is deducted when specific payments such as salary, commission, or rent are made. The deducted amount is then remitted to the tax authorities.

FAQs & Answers

  1. What does TDS stand for? TDS stands for Tax Deducted at Source, which is a method of collecting income tax in India.
  2. How is TDS calculated? TDS is calculated as a percentage of specific payments such as salary, commission, or rent.
  3. Who is responsible for deducting TDS? The payer, such as an employer or landlord, is responsible for deducting TDS before making the payment to the payee.
  4. When is TDS remitted to the government? The deducted TDS amount must be remitted to the tax authorities within specified due dates, typically on a monthly basis.