TDS in India — Complete Guide to Rates, Returns, and Compliance

## Key TDS sections and rates | Section | Payment Type | Threshold | Rate | |---|---|---|---| | 192 | Salary | Basic exemption | Slab rate | | 194A | FD Interest | ₹40,000 (₹50,000 seniors) | 10% | | 194C | Contractor | ₹30,000 (₹1L annual) | 1%/2% | | 194I | Rent | ₹2.4L/year | 10% | | 194J | Professional fee | ₹30,000 | 10% | | 194H | Commission | ₹15,000 | 5% | | 194N | Cash withdrawal | ₹1Cr | 2% | | 194Q | Purchase (business) | ₹50L | 0.1% | ## TDS compliance calendar - **7th of each month**: Deposit TDS for previous month (except March) - **30 April**: Deposit TDS for March - **31 July**: File Q1 return (26Q/24Q) for Apr–Jun - **31 Oct**: File Q2 return for Jul–Sep - **31 Jan**: File Q3 return for Oct–Dec - **31 May**: File Q4 return for Jan–Mar ## Common TDS mistakes to avoid 1. Not deducting TDS on payments to individual contractors (194C/194J) 2. Missing the higher-than-threshold annual aggregate across multiple payments 3. Depositing TDS in the wrong challan type 4. Not issuing Form 16A to payees within 15 days of filing return 5. Incorrectly computing salary TDS — failing to account for employee declarations