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TDS: Understanding Tax Deducted at Source in India
Tax Deducted at Source, commonly known as TDS, is a fundamental component of the Indian income tax system. TDS plays a significant role in ensuring tax compliance and efficient revenue collection by the government. In this blog, we will explore the ins and outs of TDS, including its meaning, recent updates, and the crucial aspects every taxpayer should know.
What Is TDS
Tax Deducted at Source (TDS) is a mechanism where a portion of the income is deducted as tax at the source by the person making certain payments. These payments include rent, salary, interest, commission, and more. Essentially, TDS ensures that income tax is collected in advance from various income sources.
What are the examples of TDS
Imagine a company called Shine Pvt Ltd rents office space for Rs. 80,000 per month. According to TDS regulations,...
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