What is tds and how much percentage should be deducted?

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Accepted Answer

TDS stands for Tax Deducted at Source. It is a tax collected by the government at the time of payment.

TDS is a tax collected by the government at the time of payment.
It is deducted from the income of the recipient.
The percentage of TDS varies depending on the type of payment and the income of the recipient.
For example, the TDS rate for salary income can range from 5% to 30% depending on the income slab.
For rent payments, the TDS rate is 10%.
For payments to contractors, the TDS rate is 1% or 2% depending on the type of contract.
The TDS amount deducted can be claimed as a tax credit while filing income tax returns.

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