TDS or Tax Deducted at Source means the tax withheld at the time of making certain payments. The rate of tax deducted is dependent upon the nature of payments made. These rates for various payments have been notified in the Income Tax Act and Rules. Payments can be in the nature of contractual fees, salaries, professional services, etc.
TDS is to be paid online and the deductor is required to furnish a TDS certificate to the deductee on a periodical basis.