TDS, or Tax Deducted at Source, is a method introduced by the Income Tax Department of India to prevent tax evasion.

The Income Tax Department has sent an important notice to Tax Deductors and Collectors, alerting them about the impact of having an 'Inoperative' PAN status on TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) rates.

Tax Deducted at Source (TDS) helps prevent tax evasion by deducting taxes from an individual's income before they receive it. The collector deducts tax at a predetermined rate.

Despite their pay slips indicating consistent TDS deductions, the apparent discrepancy suggests that the deducted tax has neither been deposited nor reported to the tax authorities.