Business Standard
What is TDS


About TDS

What is TDS

Tax Deducted at Source or TDS was introduced to collect tax from the source of income. According to the Income Tax Act, anyone making a payment is required to deduct tax if the payment is crossing certain limits. The limits or the rates are prescribed by the Income Tax department. TDS is managed by the Central Board of Direct Taxes (CBDT), which comes under the Department of Revenue.
The company or the person deducting the tax is called a deductor and the company or the person receiving the deducted payment if the deductee. The deductor is required to remit the tax into the account of the Union government and the deductee would be entitled to get credit of the amount taxed on the basis of Form 26AS.
TDS is deducted on various types of payments. It is deducted on salaries, interest payments by banks, commission payments, rent payments, consultation fees, and professional fees. TDS is not required to be paid on rent payments or on fees paid to professionals like doctors, lawyers.
TDS returns
TDS return contains the details of the deductions and has to be filed by the deductor.
TDS rates
Different TDS rates are applicable on the payments depending on the nature of the payments.
Section of the Income Tax Act makes it compulsory for every employer to deduct tax at source from the salary of employees. As per the tax laws in India, the rate of deduction depends on the income tax slab under which the employee’s salary falls.
However, TDS is applicable only when the amount crosses a certain limit which is prescribed by the Income Tax department. TDS will not be deducted if the payment amount does not cross the specified limit.

Latest Updates on TDS

Crypto industry body requests reduction in TDS to 0.01% in Budget

The crypto body has further asked for an increase in the threshold limit for TDS deduction under Section 194S of the Income Tax Act from Rs 10,000 to Rs 5,00,000

Updated On : 12 Jul 2024 | 11:21 PM IST

Wish to carry forward losses, get TDS refund? File nil Income-Tax Return

According to the Income-Tax (I-T) Act, it is not mandatory for individuals earning less than the basic exemption limit to file an ITR.

Updated On : 25 Jun 2024 | 11:04 PM IST

How to claim TDS refunds, know eligibility: A guide to the process

Such refund is issued by the Income Tax department when tax deducted or advance taxes paid exceed actual tax liability

Updated On : 20 Jun 2024 | 1:10 PM IST

To avoid notice, align your tax return with TDS on freelance income

The income earned through moonlighting can be received as a salary, or as professional fees/business income

Updated On : 17 Jun 2024 | 10:47 PM IST

Switched jobs? Align multiple Form 16s for accurate income tax filing

Also ensure that Form 16 and Form 26AS contain identical TDS details

Updated On : 03 Jun 2024 | 10:35 PM IST

15G/15H or Section 197 to avoid TDS? Choice depends on your income

Individuals with income below basic exemption limit should opt for the former, those exceeding this limit may go for the latter

Updated On : 09 Apr 2024 | 10:44 PM IST

Salaried but have sizeable other incomes? You have to pay advance tax

NRIs with income in India above Rs 10,000, post-TDS and tax treaty adjustments, must pay too

Updated On : 05 Mar 2024 | 10:15 PM IST

SC rules companies need not deduct tax for discounted SIM cards sales

This means that telecom companies need not deduct TDS for selling pre-paid SIM cards to their distributors at a rate below the market price

Updated On : 28 Feb 2024 | 7:50 PM IST

No TDS on minimum guarantee paid by OYO Rooms to hotels: ITAT

OYO Rooms assures minimum benchmarks, occupancy of hotels and in case such benchmark is exceeded, the service fee is payable by the hotel and in case of shortfall

Updated On : 15 Feb 2024 | 9:16 PM IST

Over Rs 15 trillion in direct tax mop-up comes in 'automatically'

Proportion of TDS, advance taxes in total collections inching closer to 80%

Updated On : 06 Feb 2024 | 11:34 PM IST

TDS, explaining the rise and rise of a safe-bet tax collection method

The I-T department's cost of collection has been reduced as a share of the total direct taxes collected

Updated On : 02 Feb 2024 | 12:34 PM IST

SpiceJet deposits Rs 100 cr TDS for FY23, employees to get Form-16s soon

The airline has used various avenues to raise cash. In the financial year 2022-23, the airline raised Rs 449.8 crore under the central government's Emergency Credit Line Guarantee Scheme

Updated On : 31 Jan 2024 | 5:43 PM IST

Interim Budget 2024-25: Mobile tower companies seek input tax credit

The largest players in the industry, including American Towers, Indus Towers, and Summit Digitel, are members of DIPA

Updated On : 23 Jan 2024 | 8:11 PM IST

SpiceJet gets shareholder nod to raise Rs 2.2K cr by issuing equity

Mahapatra family now owns 21.94 per cent shares in SpiceJet; Ajay Singh's shareholding reduces from 56.48 per cent to 38.55 per cent

Updated On : 11 Jan 2024 | 11:21 PM IST

Budget 2024-25 wishlist: Indian crypto players seek tax cuts to spur trade

Companies have urged the government to treat income gained from virtual digital assets (VDAs) at par with that derived from capital assets

Updated On : 09 Jan 2024 | 11:51 PM IST

India Inc seeks tax reforms, R&D incentives in upcoming interim Budget: EY

EY said that no major tax amendments or reforms are expected in the upcoming Budget as evidenced from the previous Interim Budgets of 2009, 2014 and 2019

Updated On : 08 Jan 2024 | 11:03 PM IST

CBDT clarifies applicability of TDS liability for e-retailers on ONDC

The income tax department on Thursday clarified the applicability of TDS liability of e-retailers trading through the government's ONDC initiative

Updated On : 28 Dec 2023 | 11:48 PM IST

TDS on fixed deposit interest: A guide on how to avail exemption

As per the Income Tax Act, the exemption limit for TDS deduction on FD is Rs 40,000 for individuals (excluding senior citizens) and Rs. 50,000 for senior citizens

Updated On : 14 Nov 2023 | 11:01 AM IST

Will exceed Budget target for direct tax: CBDT chairman Nitin Gupta

Rs 600 cr TDS comes from online gaming firms, Rs 105 cr from crypto assets

Updated On : 11 Oct 2023 | 8:49 AM IST

I-T dept collects over Rs 700 crore in TDS from online gaming, crypto trade

About Rs 600 crore in taxes (under the tax deduction at source head) has been collected during the current financial year after the new online gaming regime kicked in

Updated On : 10 Oct 2023 | 7:16 PM IST