Tax Deducted at Source is a crucial component of India’s tax compliance system. It is mandated under the Income Tax Act. TDS ensures that tax is collected at the source of income itself, helping the government maintain a steady revenue flow and curbing tax evasion. Whether you’re a business, professional, or salaried individual, understanding and complying with TDS is essential.
| Payment Type | Section | Threshold (₹) | TDS Rate |
|---|---|---|---|
| Salary | 192 | Applicable as per the slab | Slab Rate |
| Rent of Land/Building | 194I | ₹2.4 lakh/year | 10% |
| Contractor Payment | 194C | ₹30,000/contract or ₹1 lakh/year | 1%-2% |
| Professional Fees | 194J | ₹30,000/year | 10% |
| Commission/Brokerage | 194H | ₹15,000/year | 5% |
| Purchase of Goods (from FY 2021-22) | 194Q | ₹50 lakh/year | 0.1% |
(Note: Rates may vary with PAN/Aadhaar availability)
