TDS stands for tax deducted at source. As per the Income Tax act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.

The types of payments on which TDS is applicable are:

• Salaries


• Interest income from financial institutions


• Commission payment


• Rent payment


• Professional fees


• Consultation fees