What are the disadvantages of TDS?

Furthermore, the burden of direct taxes can discourage individuals from exerting additional effort in their work. The fear of higher tax payments on increased income can dampen motivation and productivity.

The inconvenience associated with paying direct taxes is another notable disadvantage. Unlike indirect taxes, which are embedded in the price of goods and services, direct taxes require individuals to actively calculate and pay their tax liabilities.

This process can be time-consuming and complex, especially for those who are unfamiliar with tax regulations. The need to file tax returns and maintain records adds to the inconvenience.

One significant disadvantage of direct taxes, such as TDST, is their impact on the payer's finances. These taxes directly affect an individual's disposable income, leading to a reduction in their purchasing power.

Moreover, direct taxes can create a sense of unfairness among taxpayers. Some individuals may feel that they are being disproportionately taxed compared to others, leading to dissatisfaction and resentment.