SHORT ANSWER:
TDS stands for Tax Deducted at Source, which is a means of collecting income tax in India.
DETAILS:
- TDS is deducted by the payer at the time of making certain payments like salaries, interest, rent, etc.
- The deducted amount is then deposited with the government on behalf of the payee.
- TDS rates vary depending on the type of payment and the recipient's status.
PUNISHMENT / IMPLICATIONS (if applicable):
- Non-deduction or late deposit of TDS can lead to penalties and interest on the amount due.
SOURCE:
- Income Tax Act, 1961
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