TDS was implemented with the intention of collecting tax at the source of income. According to this principle, a person (deductor) who is obligated to make payments of a particular sort to another person (deductee) must deduct tax at source and send it to the Central Government. On the basis of Form 26AS or a TDS certificate provided by the deductor, the deductee from whose income tax has been deducted at source would be entitled to a credit of the amount deducted.
Rates of TDS applicable for Financial Year 2022‐23 or Assessment Year 2023‐24:
As we have seen, TDS payments may qualify as a temporary deduction if your total tax burden is less than the TDS amount. However, if your salary places you in the highest tax rate, TDS will alleviate financial strain at the end of the year.
Paying income tax in advance reduces your tax bill at the conclusion of the fiscal year. Thus, preventing payment delays and fines.