Duty Subtracted at Source or generally appertained as TDS is the quantum of duty subtracted from the plutocrat paid at the time of making specified payments similar as rent, commission, professional freights, payment, interest, etc. The TDS quantum is subtracted at the time of making payments. Then, the duty is subtracted when the plutocrat is credited to the payee’s account or at the time of payment, whichever is before.
TDS is subtracted at the time of payment of payment or life insurance policy. The quantum subtracted as TDS is also deposited to the Income- duty department. By way of TDS, some portion of the duty is automatically paid to the Income Duty department. Therefore, TDS is considered as a means of reducing duty elusion.