ITR 2024: Income Tax vs TDS. Understanding the Differences

Explore the disparities between Income Tax and TDS in the edition of the Income Tax Return (ITR) 2024 guide. Gain insights into their divergent roles and operations.
Income tax and Tax Deducted at Source (TDS) are two terms that many Indian taxpayers encounter frequently. While they may seem similar, there are significant differences between them. Income Tax is deducted from the total profit or annual earnings of the payer, whereas TDS is deducted from specific sources of income based on expected tax liability. Additionally, the collection processes for these taxes differ.