Tax Deducted at Source (TDS) is a mechanism under which a specified percentage of tax is deducted at the time of payment to an employee, vendor, or service provider and remitted to the government. It is applicable to salaries, professional fees, rent, contractor payments, and other specified transactions, ensuring timely tax collection and compliance with tax regulations. TDS helps businesses and individuals avoid lump-sum tax payments, ensure tax accountability, and maintain transparent financial reporting. Failure to deduct or deposit TDS correctly can result in penalties, interest liabilities, and non-compliance issues.

Industries such as manufacturing, retail, logistics, e-commerce, and facility management services (FMS) must adhere to TDS regulations for contract workforce payments, professional service engagements, and supplier transactions. Organizations working with contract employees, apprentices, and outsourced workforce providers need to manage TDS deductions on salaries, consultancy fees, and vendor payments to remain compliant with tax laws. By utilizing automated payroll systems, digital tax filing solutions, and compliance tracking tools, businesses can streamline TDS calculations, prevent financial discrepancies, and ensure seamless regulatory adherence.