TDS — Rates, Sections & Reconciliation Guide
TDS covers salary (192), professional fees (194J), rent (194I/194IB), contractor (194C), commission (194H), interest (194A), dividend (194), e-commerce (194O), purchase of goods (194Q). Reconciled in Form 26AS + AIS; mismatch triggers 143(1)(a) intimation.
- Section 194J: 10% on professional/technical fees > ₹30k/year
- Section 194I: 10% on rent > ₹2.4L/year (land/building)
- Section 194IB: 5% on individual rent > ₹50k/month
- Section 194Q: 0.1% on purchase of goods > ₹50L
- Section 194S: 1% on VDA/crypto transactions
Definition
TDS (Tax Deducted at Source)
What is TDS (Tax Deducted at Source)?
TDS covers salary (192), professional fees (194J), rent (194I/194IB), contractor (194C), commission (194H), interest (194A), dividend (194), e-commerce (194O), purchase of goods (194Q). Reconciled in Form 26AS + AIS; mismatch triggers 143(1)(a) intimation.
Key rules to remember
- Section 194J: 10% on professional/technical fees > ₹30k/year
- Section 194I: 10% on rent > ₹2.4L/year (land/building)
- Section 194IB: 5% on individual rent > ₹50k/month
- Section 194Q: 0.1% on purchase of goods > ₹50L
- Section 194S: 1% on VDA/crypto transactions
Worked example
Freelancer received ₹8L from three corporates: each deducted 10% TDS ₹80k → total ₹80k in 26AS. Reconciled in ITR-3, actual tax at slab ₹42k → refund ₹38k credited in 21 days.
Which ITR form applies
- ITR-1 (Sahaj) — Up to ₹50 lakh total income
- ITR-2 — No upper limit
- ITR-3 — No upper limit
- ITR-4 (Sugam) — 44AD ₹3 Cr (digital) / 44ADA ₹75L / 44AE per vehicle
- ITR-5 — No upper limit
- ITR-6 — No upper limit
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Frequently asked questions
Frequently asked questions
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Related tools, guides & services
Related reading
- Which ITR Form Should You File in 2025? Complete Guide (ITR-1 to ITR-4)
- TDS Return Filing in India — Complete Guide 2026
- ITR-1, ITR-2, ITR-3, ITR-4 — Which Form Do You Actually Need to File?
- Complete TDS Rate Chart for FY 2025–26 — Every Section You Need
- Form 16 and 16A Difference — Full Comparison (2026)
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Do you manage TDS for payroll?+
Yes — monthly TDS, quarterly 24Q/26Q returns and Form 16 generation.
via Compliance ServicesHow do I report foreign client income?+
We handle LUT, FIRC reconciliation, DTAA benefits and ITR reporting cleanly.
via Freelancer & Creator TaxationWhat is Form 16 vs 16A?+
Form 16 is for salary TDS (annual); Form 16A is for non-salary TDS (quarterly).
via TDS Return FilingIs FD interest taxable?+
Yes. FD interest is taxable at your slab rate and TDS is deducted if interest crosses ₹40,000/year (₹50,000 for senior citizens).
via FD Calculator