TDS is an abbreviation for the Tax Deducted at Source. Any Person or a company making a payment is bound to deduct a tax at source when the payment outstrips certain threshold limits. As per the tax department’s rate prescription, the TDS has to be deducted obligatorily.
It is pivotal to understand that the Tax Deducted at Source (TDS) is the total sum that is taken off from the income of the taxpayer from their rent, interest earned from the bank, salary, etc. You can also get a TDS refund if you have accidentally paid more TDS to the government than you owe.