TDS over the years: “Pay As You Earn”.
TDS or Tax Deduction at Source is an important and effective tool for Tax Collection. World over, it has been adopted by Tax regimes as it strives to create a participative governance with the citizens participating in the act of tax collection. The Income Tax Act, 1961 casts responsibilities on certain categories of payers to deduct taxes from the payees at prescribed rates on certain transactions (sub link to be provided). As a result of this tax is collected at the earliest point of time. This speeds up the process of collection of Revenue to be deployed for national growth. With new amendments coming each year the scope of TDS is getting more and more widened and more and more transactions are coming under the purview of TDS.