Full Form of TDS
Tax Deducted at Source
TDS Full Form is Tax Deducted at Source. TDS is the revenue collected at the source of income. According to Income Tax Act – 1961, this is a form of income tax collected in India. The revenue generated by TDS is controlled by Central Board for Direct Taxes or CBDT, as CBDT is a part of the Revenue Department. TDS plays a crucial role during audits. One has to pay TDS on selective types of incomes such as immovable property, on rent, on contractor, on certificates etc.
Other types of income which requires TDS include; interest on deposits or bonds in banks, winning lotteries, winning horse races, paying salary to employees, and more. The amount deducted for TDS varies depending on the government and the type of income that is involved. The Income Tax Department expects individuals to file deductions on prescribed forms every quarter within the given due dates.