TDS refers to Tax deducted at source. According to the Income Tax Act 1961 the persons who are responsible for making payments are required to deduct tax at source. The concept says that the person who are making payments of specified nature to some other person shall deduct tax at source and remit the deducted amount to the Central Government account. The recipients from whom the amount has been deducted are likely to get the credit in his account as per the certificate issued by the deducter.
Methods of payment of TDS –
- Corporate Assesses and all the other assesses (except companies) to whom section 44AB is applicable are required to make E-payment.
- Other mode an assesses can adopt is by filling Challan 281 in the authorized bank.