TDS, or Tax Deducted at Source, is a simple way for the government to collect income tax right when you earn money. Instead of paying a lump sum at the end of the year, a small portion is deducted during the actual transaction like when you receive your salary, interest from the bank, rent, or professional fees. This helps the government get a steady flow of money and also prevents people from avoiding taxes. For individuals and businesses, it spreads out the tax payments over the year and keeps a clear record of what’s earned and what’s already paid, which makes filing income tax returns much easier