TDS was created to collect tax directly from income sources. This
concept states that a person (deductor), who is liable for making
payment of specified nature to another person (deductee), shall deduct
tax from the source and remit it into the Central Government’s account.

A
credit would be granted to the person whose income tax was deducted at
source based on Form 26AS/TDS certificates issued by the deductor.

Online
TDS returns can be filed by any employer who has a valid TAN (tax
collection and deduction account number). Individuals and businesses
must deduct tax at source for any payment made under the I-T Act. The
required time frame for depositing the same is met. These payment types
are:

• Salary
• Commissions for insurance
• Horse racing wins can bring in income
• Income through “Income on Stocks”
• You can earn income by winning the lottery or solving puzzles.
• Payments for National Saving Scheme and other programs

If
the e-TDS was taken from an assessee’s income, they can file an e-TDS
return. The assessee must file the return by the due date, or they will
be penalized for late filing. These are the categories of assesses that
can electronically file their TDS return each quarter:

• Company in India  
• Audited accounts of persons u/s44AB
• Individuals who hold an office under the Government

According to the IT Act of 1961, filing a TDS return is required. It also provides some benefits for individuals or companies. There are a few benefits to submitting a TDS return and getting information about the status of your refund request:

• An inflow of steady income to the government
• Facilitates the collection of taxes that are used for welfare.
• There is no need to pay a lump sum tax as it is paid every three months throughout the year.