What is TDS and which people are effected?
Tax will be deducted at source whenever the taxable income exceeds the specified limits at the rates prescribed under Schedules to Income Tax Act. After deducting tax, the deductor has to gi ...more
The person who pays you has to deduct the tax part of your receipt and has to pay the deducted amount to the govt. on behalf of you.
For that you can get Form 16/16A ( aka TDS Certificate) from the payer.
Against that while filing your income tax return, you can claim refunds ( if you have zero tax liability) or you can claim deduction from your gross tax liability and pay the balance to IT Dept.
If everything goes right, no one is affected ?
In fact the govt. has to mess up with the documents and papers.