Tax Planning
12 min read
January 10, 2025
TDS Explained: Complete Guide to Tax Deducted at Source
Everything you need to know about TDS rates, sections, refund process, and compliance
What is TDS?
Tax Deducted at Source (TDS) is a system where tax is collected at the source of income generation. The payer deducts tax before making payment to the receiver.
Common TDS Sections & Rates
| Section | Payment Type | TDS Rate |
|---|---|---|
192 | Salary | As per slab |
194A | Interest (Bank/FD) | 10% |
194C | Contractor Payment | 1-2% |
194H | Commission/Brokerage | 5% |
194I | Rent (Property) | 10% |
194J | Professional Fees | 10% |
How to Claim TDS Refund
- 1. Check Form 26AS for TDS credited
- 2. File ITR before deadline
- 3. Claim excess TDS as refund
- 4. E-verify your return
- 5. Refund processed within 30-45 days
TDS Compliance for Businesses
- ✓Deduct TDS at correct rates
- ✓Deposit TDS by 7th of next month
- ✓File quarterly TDS returns
- ✓Issue TDS certificates (Form 16/16A)