What's is TDS meaning

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Accepted Answer

TDS stands for Tax Deducted at Source.

TDS is a system in which tax is deducted at the time of making payments such as salary, rent, commission, etc.
It is a method to collect tax at the source of income.
The person making the payment deducts a certain percentage of the payment as tax and deposits it with the government.
TDS is applicable to various types of payments like salaries, interest, rent, professional fees, etc.
The deducted tax is then credited to the account of the recipient and can be adjusted against their total tax liability.
For example, if an employee's salary is $5,000 and the applicable TDS rate is 10%, $500 will be deducted as TDS and the employee will receive $4,500 as net salary.