Tax Deducted at Source means tax is collected the moment income is paid — not at the end of the year. Here's how it works across common payment types.
| Section | Payment type | Typical Rate |
|---|---|---|
| 192 | Salary | As per applicable slab |
| 194A | Interest (other than securities) — bank FD, RD | 10% (20% without PAN) |
| 194C | Payments to contractors | 1-2% |
| 194J | Professional/technical fees | 10% (or 2% for certain technical services) |
| 194-IA | Purchase of immovable property (above ₹50L) | 1% |
| 194H | Commission or brokerage | 2% |
| 194-I | Rent (above threshold) | 2% (plant/machinery) or 10% (land/building) |
TDS deducted on your behalf shows up in your Form 26AS and AIS. When you file your ITR, this amount is automatically adjusted against your final tax liability — you either get a refund (if TDS exceeds your actual liability) or pay the balance.
If your total income is below the taxable threshold, you can submit Form 15G (below 60) or Form 15H (60+) to banks to avoid TDS on interest income. Alternatively, apply for a lower-deduction certificate from the Assessing Officer if your estimated tax liability is genuinely lower than the standard TDS rate.
Estimate your TDS on salary or interest income.
Use the TDS Calculator →TDS sections and rates have many exceptions and thresholds not covered here. Verify the exact section applicable to your payment with a CA.