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      Question

      TDS (Tax Deducted at Source) is a mechanism

      for:
      A Collecting tax at the point of generation of income Correct Answer Incorrect Answer
      B Providing tax refunds Correct Answer Incorrect Answer
      C Calculating advance tax Correct Answer Incorrect Answer
      D Filing income tax returns Correct Answer Incorrect Answer
      E Auditing tax payments Correct Answer Incorrect Answer

      Solution

      TDS is a method of collecting income tax in India. It is deducted by the payer (the deductor) at the time of making specified payments (like salary, interest, professional fees) to the payee (the deductee). It ensures that tax is collected upfront at the source of the income itself.

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