Unraveling TDS: Complete Form and Meaning

TDS is a tax collection mechanism that ensures a steady inflow of revenue for the government. TDS ka Full Form is Tax Deducted at Source. The TDS system was introduced to prevent tax evasion and improve tax compliance by collecting tax at the source of income. In this article, we will unravel the complete form and meaning of TDS and its impact on taxpayers. What is TDS? TDS stands for Tax Deducted at Source. It is a mechanism used by the Income Tax Department to collect tax at the source of income. In simple terms, it means that tax is deducted from the income of the taxpayer before it is paid to them. The person who is making the payment is responsible for deducting the tax and depositing it with the government on behalf of the taxpayer. TDS is applicable to a wide range of payments, including salary, interest, commission, rent, and professional fees, among others. The rate of TDS varies depending on the type of payment and the amount of income. For instance, the TDS rate f...