Tax Deducted at Source - tax cut from income before payment. Common: salary (192), bank interest (194A), rent (194I), professional fees (194J). Adjustable in ITR.
TDS on salary?+
Employer deducts based on annual estimated tax. Section 192. Calculated assuming year salary, applies appropriate slab. Form 16 issued at year-end. Adjustable in ITR.
TDS on bank interest?+
10% if interest >₹40,000/year (₹50k for seniors). No TDS if you submit Form 15G/15H (income below tax exemption). Aggregate across all bank branches.
How to avoid TDS?+
Below threshold (₹40k bank interest, ₹50k seniors): Submit Form 15G/15H to bank. PAN-linked Aadhaar avoids 20% (without PAN higher TDS). Check eligibility.
TDS refund?+
If excess TDS deducted: Adjust in ITR filing. Refund credited to bank account in 30-60 days after filing. Match Form 26AS with TDS claimed in ITR.
TDS rates AY 2025-26?+
Salary: As per slabs. Bank interest: 10%. Rent: 10% (>₹2.4L), 5% (residential >₹50k). Professional: 10%. Property purchase: 1%. Various rates by section.
Form 26AS?+
Annual Tax Statement showing all TDS on your PAN. View at incometax.gov.in. Check before filing ITR. Mismatch with Form 16 = correction needed via deductor.
TDS for freelancers?+
Section 194JB: 10% on professional fees if >₹30,000/year per client. Section 194O: 1% on online platform earnings. Adjust in ITR. Maintain receipts.