TDS
Also known as: Tax Deducted at Source
Tax Deducted at Source - Tax collected by the payer before making payment to the payee.
Detailed Explanation
TDS (Tax Deducted at Source) is a system where tax is deducted at the source of income by the payer and deposited with the government. Common TDS scenarios include salary, bank interest (if exceeding ₹40,000/year for individuals), fixed deposits, rent payments above ₹2.4 lakhs annually, and professional fees. TDS certificates and Form 26AS help track these deductions for tax filing.
Related Calculators
Related Terms
Form 26AS
Annual tax statement showing all TDS deducted, advance tax paid, and other tax-related transactions.
Advance Tax
Quarterly tax payments made during the year for income not subject to TDS.
AIS
Annual Information Statement - Comprehensive statement of financial transactions reported to tax authorities.