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what is tds
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Tax Deduction at Source
Generally companies Deduct this tax from Contractors
as per the govt rules of income tax act.
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Answer / vishu.u.s
TDS ( Tax Deducted at Source ) is the amount of Tax deducted from the payment of some expenses or fee by the payer of such expenses.The nature of payments comes under TDS and the rate at which it is deducted is mentioned in Income Tax Act 1961.
Examples of such Payments : Salary, Interest, Professional Fee,Payment towards winning from Lottery, Cross word puzzle, card games etc.
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