What is TDS
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Answer Posted / divya aggarwal
TDS is Tax Deducted at Source
Assessee pays tax in the assessment year on the income
earned in previous
year. Due to this rule the tax collection is delayed till
the completion of the
previous year. Even sometimes people conceal there income
and the tax is not
paid at all. In order to overcome these problems,
government started deducted
some amount of tax from the amount which is receivable by
the assessee. The
amount of tax so deducted is called as “Tax Deducted at
Source”
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