TDS or Tax Deducted at Source is tax reduced from the cash paid at the time of creating specified payments like rent, commission, professional fees, salary, interest etc. by the persons making such payments. Usually, the person receiving income is susceptible to pay tax . But the govt with the assistance of Tax Deducted at Source provisions makes sure that tax is deducted beforehand from the payments being made by you. The recipient of income receives internet amount (after reducing TDS). The recipient will add the gross amount to his income and therefore the amount of TDS is adjusted against his final liabilities . The recipient takes credit of the quantity already deducted and paid on his behalf.
TDS return can be filed by employers or organizations who have a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time.
