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Glossary / Also known as

Withholding tax

Another name for TDS (Tax Deducted at Source).

Other names
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What does withholding tax mean?

Withholding tax is another name for TDS (Tax Deducted at Source). A system where the payer deducts income tax at prescribed rates before paying the payee, and deposits it with the government on the payee's behalf.

The two names mean the same thing. You will see "withholding tax" in some ledgers, reports and contracts and "TDS" in others. The full entry covers how it works, with examples.

Read the full definition of TDS (Tax Deducted at Source)

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From the glossary

Related terms.

TDS TDS (Tax Deducted at Source) A system where the payer deducts income tax at prescribed rates before paying the payee, and deposits it with the government on the payee's behalf. Also called withholding tax, tax deduction at source, tax withheld at source GST basics GST (Goods and Services Tax) India's unified indirect tax that replaced multiple central and state levies, creating a single national market for goods and services. Also called Goods & Services Tax Income Tax Act 2025 Income Tax Act, 1961 The primary legislation governing the levy, assessment, and collection of income tax in India. Also called Income Tax Act 1961, IT Act, the old Income Tax Act Vendor onboarding PAN (Permanent Account Number) A unique 10-character alphanumeric identifier issued by the Income Tax Department of India to every taxpayer. Also called PAN card, PAN number TDS TAN (Tax Deduction Account Number) A unique 10-digit alphanumeric number required by all persons responsible for deducting or collecting tax at source. Also called TAN number, deductor account number TDS rates and sections Lower Deduction Certificate A lower deduction certificate under Section 197 authorises deductors to deduct TDS at a rate lower than the prescribed rate or at nil, based on the deductee's estimated tax liability. Also called lower TDS certificate, Form 128, Form 13 certificate
From the blog

Related posts.

TDS Section 393 of Income Tax Act 2025: TDS Rates and Old-to-New Section Mapping Section 393 of the Income Tax Act 2025 is the single TDS section for non-salary payments from 1 April 2026, replacing 193, 194 to 194T and 195. OneFinOps Editorial 4 min TDS What is TDS? Meaning, Rates and How It Works TDS (tax deducted at source) is income tax the payer deducts from a payment such as salary, fees, rent or interest and deposits with the government. OneFinOps Editorial 3 min TDS Section 194Q: TDS on Purchase of Goods Under the New Act Section 194Q is now 393(1) Sl. No. 8(ii), code 1031: a buyer with turnover above ₹10 crore deducts 0.1% on purchases above ₹50 lakh from a seller. OneFinOps Editorial 2 min
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