What are the various aspects related to Tax Deducted at Source (TDS)?

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Accepted Answer

TDS is a tax collection mechanism where tax is deducted at the source of income, ensuring timely tax payments to the government.

TDS is applicable on various payments like salaries, interest, rent, and professional fees.
For example, TDS on salary is deducted based on the employee's income tax slab.
The TDS rate varies depending on the nature of the payment; for instance, TDS on interest from banks is typically 10%.
TDS must be deposited with the government within a specified time frame, usually by the 7th of the following month.
Failure to deduct or deposit TDS can lead to penalties and interest charges.