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What is TDS (Tax Deduction at Source)? 

The scheme of TDS is that tax on income should be deducted at source i.e. the person responsible for making payment of income should deduct tax at the applicable rates & deposit the same to the Government’s treasury/account. Thereby the recipient of income gets income less tax ie. TDS. The amount of tax deducted from his income i.e. TDS can be adjusted against recepients' final tax liability. It is simply a “Pay as you earn” scheme also known as withholding tax in many countries.To be more simple we can say that now we receive our incomes like interest, salary etc. after tax which is called as TDS. To be able to claim the TDS on our incomes we must ensure to declare our PAN to the deductors like banks. 

Person making payment of income and deducting tax thereon is called the Deductor. A deductor is required to obtain a 10 digit alphanumeric registration number known as TAN.

For implementing the scheme effectively, there is a complete range of sections dealing with various areas of TDS deductions, TDS returns, TDS rates etc.

26AS i.e. Tax Credit Statement is one of the very remarkably done technological improvement in TDS compliance. Now one can be sure of whether tax deducted on his/her income is correctly deposited to government's account or not by viewing his/her Tax Credit Statement (26AS).

Some Quick links:
26AS/Tax Credit Statement
Taxability of gifts in India
TDS on property purchase
Avoid TDS by Form 15G and Form 15H

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