TDS stands for Tax Deducted at Source. Tax Deducted at Source is a direct tax which was introduced with an aim to collect the tax from the very source of income. The government uses TDS as a mechanism to collect tax in order to minimise tax evasion by taxing the income (partially or wholly) at the time it is generated rather than at a later date. As per this concept, the deductor who is liable to make payment of specified nature to other person i.e., deductee, shall deduct tax at a source and remit the same in the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.
Now the question arises, whether you have checked that the tax which has been deducted from your salary has been deposited by your employer in the government’s account. If the employer has not deposited such amount, then it can lead you into litigation!
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