TDS (Tax Deducted at Source) calculation is a crucial aspect of payroll processing where employers deduct tax from employees’ income at the time of payment. TDS is a mechanism for collecting income tax in advance, ensuring that tax is deducted at the source of income. TDS applies to various payments such as salaries, interest, rent, commission, professional fees, etc., exceeding specified thresholds as per Income Tax laws.

Ensures compliance with income tax laws and regulations. Builds trust among employees regarding accurate deduction and remittance of taxes. Prevents penalties and legal implications due to incorrect or delayed TDS deductions and filings.