Tax Deducted at Source (TDS) is a mechanism where tax is deducted at the time of making certain payments. The deductor (payer) deducts tax and deposits it with the government on behalf of the deductee (recipient).
Common TDS scenarios:
- Salary - Employer deducts TDS based on tax slab
- Interest - Banks deduct TDS on FD interest above Rs 40,000
- Rent - TDS on rent above Rs 2.4 lakhs per year
- Professional fees - TDS on payments to contractors/professionals
The deductee can claim credit for TDS when filing their ITR.
Examples
- Company deducting 10% TDS while paying a consultant Rs 50,000
- Bank deducting TDS on interest earned on Fixed Deposit
Deadline
7th of the following month for deposit, quarterly for TDS returns
View in Tax Calendar
See all TDS payment and return deadlines in our Tax Calendar with month-by-month breakdowns for the current year.
Open Tax Calendar