TDS is the Tax deducted at source at the time of making a payment to a person and is mandatory to be paid as per the Income Tax Act 1961. When an individual deducts these taxes has to deposit TDS with the government. As per the rules, the employer who deducts the tax is known as the deductor and before making the payment he deducts the tax and renders it to the customer who is referred to as the deductee. This tax is then deposited with the central government of India.

As per the norms, the TDS is applicable for salaried employees, interest payout from banks, lawyer and consultant fees, etc. There is a certain slab fixed in deducting the taxes which can range anywhere between 10-20%. Also a person can claim the refund of the extra amount if his/her TDS deduction exceeds the limit. TDS payment is available in two forms; the electronic mode or E-payment and the Physical mode.

TDS return filing is very important to recover your refund. TDS return is a quarterly statement handed over to the income tax department which includes PAN details, particulars of Tax paid, details of TDS challan and various other required documents.