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What is Tax Deducted at Source (TDS) in Indian income tax?
What is Tax Deducted at Source (TDS) in Indian income tax?
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Tax Deducted at Source (TDS) is a system of tax collection where the payer deducts tax from certain types of payments such as salary, interest, rent, commission, etc., at the time of making payment. The deducted tax is then remitted to the government on behalf of the payee. TDS aims to collect tax at the source of income to ensure a steady flow of revenue to the government and to reduce tax evasion.