Tax Deducted at Source (TDS) is a type of tax which is collected by banks, individuals and other entities on behalf of the Income Tax Department in India also managed by the Central Board for Direct Taxes (CBDT).
TDS will be applicable for bank deposits where the interest credited is more than Rs 10,000. It is Rs 5000 for interest income on company fixed deposits.
Here are 5 smart things to know about TDS
1. If the net taxable income is less than maximum amount Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens), TDS is not applicable.
2. The tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, lottery etc.
3. TDS of 30 per cent would be levied on winnings from lotteries, puzzles and horse races.However, basic exemption limit for deducting TDS is INR 5000 for lotteries and puzzles but only INR 2500 for horse races.
4. The tax deducted by the payer, can be checked in Form 26AS from your e-filing account at https://incometaxindiaefiling.gov.in
You can also use the "View Your Tax Credit" facility available at www.incometaxindia.gov.in
* Note that TDS amount can be claimed if the tax liability of the payee is nil or lower than the amount of TDS.
5. Interest paid on securities or any debentures issued by a company where such debentures are listed on a recognized stock exchange will attract TDS would be @ 10% if it exceeds the limit of Rs. 10,000/-.