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TDS Deduction Rules Explained: A Complete Guide for 2025

· TappyCalc Team

TDS Deduction Rules Explained: A Complete Guide for 2025

Tax Deducted at Source (TDS) is a mechanism where the payer deducts tax before making certain payments. Understanding TDS rules ensures you don't pay more tax than necessary.

Common TDS Scenarios

  • Salary: Employer deducts TDS based on your estimated annual income
  • Bank Interest: TDS at 10% if interest exceeds Rs. 40,000 (Rs. 50,000 for senior citizens)
  • Rent: TDS at 10% if monthly rent exceeds Rs. 50,000
  • Professional Fees: TDS at 10% for payments to contractors and professionals

How to Claim TDS Refund

If excess TDS has been deducted, you can claim a refund by filing your Income Tax Return (ITR). The refund is typically processed within a few months of filing.

Plan your tax payments with our GST Calculator.

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