Tax Deducted at Source (TDS) is a system where person responsible for making specified payments is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment.

The basic objective of introducing TDS by the Government is to collect the tax at the time of payment of income to various assessees. Government requires funds throughout the year.
Hence, advance tax and tax deducted at source help the government to get funds throughout the year and run the government smoothly. TDS and Advance tax provisions are also fesible for the assesseee to pay the taxes in easy installments to avoid the burden of paying the same at the last of financial year. Read more