What is TDS with explain

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Accepted Answer

TDS stands for Tax Deducted at Source. It is a tax collection mechanism in India.

TDS is a way of collecting tax at the source of income.
It is applicable to various types of income such as salary, interest, rent, commission, etc.
The person making the payment deducts a certain percentage of tax and deposits it with the government.
The deducted amount is reflected in the Form 16/16A which is issued to the person receiving the income.
The person receiving the income can claim credit for the TDS while filing their income tax return.
TDS rates vary depending on the type of income and the amount being paid.
For example, TDS on salary is deducted based on the income tax slab rate applicable to the employee.
TDS on interest income is deducted at a rate of 10% if the interest amount exceeds Rs. 10,000 in a financial year.

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