Interesting fact’s about TDS, Know it’s rules

TDS– If you are going to file Income Tax Return (ITR Filing 2025), then it is important for you to know Tax Deduction at Source i.e. TDS. In this article, we are telling you what is TDS, in which cases it is applicable, what are the rules of TDS filing, what happens if the rule is not followed.

What is TDS

When a person, organization or company makes payment to someone, there is a rule to make the payment after deducting tax. This payment can be in the form of salary, rent, commission etc. However, there is a provision to deduct TDS only when payment is made above a certain amount. The person or organization deducting TDS has to deposit the tax amount with the government. TDS is adjusted when the taxpayer files Income Tax Return (ITR).

In which cases TDS is deducted

There is a provision to deduct TDS in transactions like salary (Section 192), interest (Section 194A), rent (Section 194I), professional fees (Section 194J), commission or brokerage (Section 194H), purchase and sale of property (Section 194 IA) or dividend (Section 194). If the taxpayer who deducts TDS pays salary, then he has to give Form 16. Form 16A is given for non-salary payments.

Where can you see the details of TDS

The taxpayer whose TDS is deducted can check its details in Form 26AS or AIS. While filing Income Tax Return (ITR), the taxpayer can adjust the TDS in his tax liability.

It is mandatory for the TDS deductor to file TDS returns every quarter. Form 24Q, 26Q etc. are used for this. If the TDS deductor does not deposit the tax amount with the government every quarter or deposits it late, then he may be fined under section 234E.

How much TDS is deducted

The rate at which TDS will be deducted depends on the type of payment and the person to whom the payment is being made. It is different for individuals and firms. For example, if the company pays you salary, then tax will be deducted according to your annual income bracket. If the person whose TDS is to be deducted does not provide his PAN, then TDS will be deducted at the rate of 20% or more.