What is TDS? TDS (Tax Deducted at Source) is at source deduction of by the responsible person for deducting the same for the following payments : · Payment of Salary. · Income by way of “Income on Securities”. · Income by way of winning lottery, puzzles and others. · Income from winning horse races. · Insurance Commission. · Payment in respect of National Saving Scheme and many others. Know about TDS Rates? Who deposit TDS to the government? The deductor deposits this TDS amount to the Income Tax department. Through TDS, some portion of tax is automatically paid to the Income Tax department. Thus, TDS is considered as a method of reducing tax evasion. Tax is deducted usually over a range of 1% to 30% and it should be deposited into credit of Income Tax Department, Government of India on or before due date. To know more about TDS payment due dates read my article Pay TDS (Tax Deducted at Source) on time and avoid penalt