What is tds? TDS stands for Tax Deducted at Source. It’s a way for the government to collect tax from your income. It is a means of collecting income tax in India, where your payer deducts a certain percentage of your income and deposits with the government on your behalf. When you receive money, a part of it goes directly to the government before it reaches you. This amount is the tax you owe, known as TDS. Now, how to calculate tds? TDS calculator is an effective tool. It helps you determine how much tax will be deducted from your income. How do TDS calculators work, and what are the advantages of the online TDS calculator?