Tax Deduction at Source { TDS }

Tax deducted at source (TDS) is a system to collect tax from the very source of income. A person who is liable to make payment of specified nature to any other person shall deduct tax at source and deposit to the account of the Central Government through any of the designated branches of banks authorized to collect taxes on behalf of the Government of India. They should also furnish TDS returns containing details of deductee(s) and challan details relating to the deposit of tax to ITD. The deductee from whose income tax has been deducted at source would be entitled to get the credit of the amount so deducted based on Form 26AS or TDS certificate issued by the deductor.