TDS, or Tax Deducted at Source, is a mechanism introduced with the objective of collecting tax directly from the source of income. According to the official definition provided by the Income Tax authorities, a person (known as the deductor) who is obligated to make payments of a specified nature to another person (known as the deductee) is required to deduct tax at source and remit the deducted amount to the Central Government's account.
The deductee, from whose income tax has been deducted at source, is entitled to receive credit for the deducted amount. This credit can be claimed based on Form 26AS or a TDS certificate issued by the deductor.
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