Example of TDS
Assume that a start-up company pays ₹50,000 as rent every month to whoever owns the property. The TDS applicable to the amount is 10%, so the company must subtract ₹5,000 and pay ₹45,000 to the property owner. In this case, the owner of the property will receive ₹45,000 following TDS. The owner can add the gross amount of ₹50,000 to his income, thereby allowing him/her to take credit for the ₹5,000 that has already been deducted by the company.