Tax Deducted at Source requires payers to withhold tax at origin and remit it to the government on payees' behalf. Tax Deducted at Source (TDS) is a withholding mechanism requiring a payer to deduct tax when income is generated and remit it to the government on behalf of the payee. It applies to specified payment categories such as salary, interest, commission, brokerage, professional fees, royalty and contract payments. The payer is obliged to deduct the prescribed tax at source and deposit it with the government, shifting collection responsibility from the payee to the payer and enabling contemporaneous revenue collection.