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Answer Posted / pradipta
TDS means Tax Deduction at Source. Under this system
payer is required to deduct tax at the time the payment is received by or credited to the account of the payee. This is similar to the PAYE system whereby tax is deducted by employer at the time emoluments are made available to the employee. The payments covered under this system are:
(a)Interest;
(b)Royalties;
(c)Rent;
(d)Any sum paid to architects, engineers, land surveyors, project managers in construction
industry, property valuers and quantity surveyors as consideration for services rendered by
them;
(e)Payments to contractors and sub-contractors
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