Skip to content

ERP glossary · Accounts

What is Tax deducted at source (TDS)?

Definition

Tax deducted at source is income tax that a payer deducts from certain payments, such as contractor fees, rent or professional charges, and deposits with the government.

The deductor must deposit the tax on time, file returns and give the payee a certificate, so the payee can claim credit.

Related terms

All glossary terms

Start running your business on IndustryX today

Free forever* for 2 users. Upgrade when you grow, and your data comes with you.