What is TDS

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.
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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.
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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.
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TDS returns
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TDS return contains the details of the deductions and has to be filed by the deductor.
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TDS rates
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Different TDS rates are applicable on the payments depending on the nature of the payments.
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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.
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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.
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Latest Updates on TDS

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

4 min read Last Updated :Mar 05 2024 | 10:15 PM IST
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SC rules companies need not deduct tax for discounted SIM cards sales

2 min read Last Updated :Feb 28 2024 | 7:50 PM IST
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No TDS on minimum guarantee paid by OYO Rooms to hotels: ITAT

2 min read Last Updated :Feb 15 2024 | 9:16 PM IST
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Over Rs 15 trillion in direct tax mop-up comes in 'automatically'

3 min read Last Updated :Feb 06 2024 | 11:34 PM IST
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TDS, explaining the rise and rise of a safe-bet tax collection method

2 min read Last Updated :Feb 02 2024 | 12:34 PM IST
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SpiceJet deposits Rs 100 cr TDS for FY23, employees to get Form-16s soon

2 min read Last Updated :Jan 31 2024 | 5:43 PM IST
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Interim Budget 2024-25: Mobile tower companies seek input tax credit

3 min read Last Updated :Jan 23 2024 | 8:11 PM IST
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SpiceJet gets shareholder nod to raise Rs 2.2K cr by issuing equity

2 min read Last Updated :Jan 11 2024 | 11:21 PM IST
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Budget 2024-25 wishlist: Indian crypto players seek tax cuts to spur trade

4 min read Last Updated :Jan 09 2024 | 11:51 PM IST
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India Inc seeks tax reforms, R&D incentives in upcoming interim Budget: EY

3 min read Last Updated :Jan 08 2024 | 11:03 PM IST
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CBDT clarifies applicability of TDS liability for e-retailers on ONDC

2 min read Last Updated :Dec 28 2023 | 11:48 PM IST
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TDS on fixed deposit interest: A guide on how to avail exemption

4 min read Last Updated :Nov 14 2023 | 11:01 AM IST
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Will exceed Budget target for direct tax: CBDT chairman Nitin Gupta

4 min read Last Updated :Oct 11 2023 | 8:49 AM IST
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I-T dept collects over Rs 700 crore in TDS from online gaming, crypto trade

2 min read Last Updated :Oct 10 2023 | 7:16 PM IST
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India likely to keep door shut on crypto for two years, says WazirX

3 min read Last Updated :Sep 22 2023 | 6:53 AM IST
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Bigg Boss fame actor Kriti Verma named in ED chargesheet in fraud case

2 min read Last Updated :Sep 13 2023 | 1:46 PM IST
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Tata Comm moves ITAT against Rs 228.49 cr TDS order by Income Tax Dept

1 min read Last Updated :Sep 09 2023 | 5:26 PM IST
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28% GST on online gaming: How will new tax work for players and companies

5 min read Last Updated :Aug 04 2023 | 1:52 PM IST
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CBDT exempts aircraft leasing biz at Gift City from tax deducted at source

2 min read Last Updated :Jul 21 2023 | 7:16 PM IST
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Filing ITR? Don't forget to declare your income from other sources

7 min read Last Updated :Jul 19 2023 | 8:21 AM IST
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