TDS

Tax Deducted at Source

Tax deducted by the payer at the time of payment to the payee.

What is TDS?

TDS rates vary by section: 1% (Sec 194-IA, property), 5% (Sec 194-I, rent), 10% (Sec 194J, professional fees), 30%+ (Sec 195, NRI payments). Deducted, deposited (Challan 281), and reported (Forms 24Q / 26Q / 27Q quarterly).

Who needs TDS?

Every business and high-income individual.