What is TDS? Describe section 192 C of TDS.

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TDS stands for Tax Deducted at Source. Section 192 C of TDS pertains to TDS on payment of arrears.

TDS is a tax collection mechanism where tax is deducted at the source of income.
Section 192 C of TDS deals with TDS on payment of arrears.
Arrears refer to the payment of salary or other dues that were not paid in the previous financial year.
The employer is required to deduct TDS on such arrears at the time of payment.
The rate of TDS for arrears payment is the average rate of income tax that would have been applicable if the arrears were paid in the year they were due.
The TDS deducted is then deposited with the government and a TDS certificate is issued to the employee.
The employee can then claim credit for the TDS deducted while filing their income tax return.

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