TDS (Tax Deducted at Source)
✓ Last verified 14 Sep 2026
The short version
TDS is tax collected upfront by whoever pays you - an employer, bank, or property buyer - and deposited directly with the government on your behalf, before you ever receive the full amount.
TDS applies to salary (via your employer), bank fixed deposit interest above a threshold, rent above a threshold, and property sales above ₹50 lakh (see our TDS-on-property-sale article), among others. It isn't a separate, additional tax - it's an advance collection mechanism, and the amount deducted shows up as a credit against your total tax liability when you file your return. If your actual tax liability is lower than the TDS already deducted, you get the difference back as a refund; if it's higher, you owe the balance.
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