Tax Deducted at Source
1) To enable the salaried people to pay the tax as they earn every month. This helps the salaried persons in paying the tax in easy installments and avoids the burden of a lump sum payment.
2) To collect the tax at the time of payment of income to various assesses such as contractors, professionals etc.
3) Government requires funds throughout the year. Hence, advance tax and tax deducted at source help the government to get funds throughout the year and run the government smoothly.