Income tax is paid by an individual during an assessment year, on the income earned during the previous year. As a result, tax collection is delayed until the conclusion of the previous year. TDS (Tax Deduction at Source) is a method of collecting income tax from salaried individuals, wherein the applicable tax amount is deducted at the time of computing the income itself. An individual who has authorized TDS receives his/her salary after deduction of the tax. The tax deducted from the assessee’s (tax-payer) salary account is deposited with the Government treasury within a specified time, helping in faster collections.