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What does TDS stand for in the context of taxation?
  • a)
    Tax Deducted at Source
  • b)
    Tax Deduction Scheme
  • c)
    Tax Distribution System
  • d)
    Total Deduction Sum
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
What does TDS stand for in the context of taxation?a)Tax Deducted at S...
TDS stands for Tax Deducted at Source. It is a mechanism through which taxes are deducted at the time of payment itself. This system ensures that taxes are collected in advance from various sources of income such as salaries, interest, dividends, etc.
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