The logic behind TDS is to make sure that the Tax is deposited with the Income Tax without fail. When it is the responsibility of the tax payer he/she may evade the tax payment hence it has been made mandatory that the Tax should directly be deducted from the source. this provision was made just to make sure the tax remittance.
29th August 2007 From India, Delhi
As per Income Tax Act TDS amount is deducted from vendors of the company and on salary also to generate govt revenue. otherwise how govt will function in India or any any other country ? If you have any example that any other country has make its rules that without TDS or Income tax deduction from employees they are creating revenue kindly inform me.
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31st August 2007