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Tds (tax Deducted At Source) Is An Indirect System Of Deduction Of Tax By Indian Authorities According To The Income Tax Act, 1961 At The Point Of Generation Of Income Tax. Tax Is Deducted By The Payer And Is Remitted To The Government By The Payer, On Behalf Of The Payee. a Tds Return Is A Quarterly Statement Which Has To Be Submitted To The Income Tax Department Of India. Submitting Tds Return Is Mandatory If You Are A Deductor. It Has Details Of Tds Deducted And Deposited By You.