Tax deduction at source means the tax required to be paid by the assessees, is deducted by the person paying the income to him. Thus, the tax is deducted at the source of income itself. The income tax act enjoins on the payer of such income to deduct the given percentage of income as income tax and pay the balance amount to the recipient of such income. The tax so deducted at source by the payer is to be deposited in the income tax department account. The tax so deducted from the income of the recipient is deemed to be payment of income tax by the recipient at the time of his assessment.
The income from the following sources is subjected to tax deduction at source
Salary and all other positive incomes under any head on income( Section 192 )
Interest on securities ( Section 193 )
Interest other than interest on securities( Section 194A )
Payments to contractors and sub-contractors( Section 194C )
Winnings from Lottery or crossword puzzles( Section 194B )
Winnings from horse races( Section 194BB )
Insurance Commission covering all payments for procuring Insurance business(Section 194D )
Any interest other than interest on securities payable to non-residents not being a company or to a foreign company( Section 195 )
Payment to non-resident sportsman including athlete or sports association/institution. In case of non-resident sportsman, payments in respect of advertisements as well as articles on any game/sports in India in newspapers, magazines, etc. is included( Section 194E )
Payment in respect of deposits under NSS[National Savings Scheme]( Section 194EE )
Payment on account of repurchase of Units by Mutual Fund or UTI (Section 194F)
Payment for Commission or brokerage( Section 194H )
Payment of rent( Section 194I )
Payment of fees for professional or technical services( Section 194J )
Commission to Stockist, distributors, buyers and sellers of Lottery tickets including remuneration or prize on such tickets( Section 194G )
Income from Units purchased in foreign currency or long-term capital gain arising from the transfer of such Units purchased in foreign currency ( Section196B )
Payment of any income to non-residents in respect of interest or dividend on bonds and shares (Section 196C )etc.
Home 
