WHY GOVERNMENT DEDUCT TDS

The Indian government takes TDS (Tax Deducted at Source) to ensure that 

1. Taxes are collected at the source of income, and to 

2. Prevent tax evasion. 

3. TDS also helps the government to maintain a steady flow of revenue throughout the year, rather than waiting until the end of the financial year to collect taxes.

TDS is a mechanism that enables the government to collect taxes from various sources of income, such as salaries, interest, dividends, and payments made to contractors, among others.

By deducting a portion of the tax liability at the source, the government ensures that taxpayers comply with tax laws and that they pay their due share of taxes. 


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