TDS — Tax Deducted at Source
Tax term
TDS is tax that the payer deducts before paying you — on salary, interest, rent or professional fees — and deposits with the government on your behalf.
It is an advance collection, not an extra tax: you claim it back against your final liability when you file your return, and get a refund if too much was deducted. A bank deducts 10% TDS on FD interest above ₹40,000 a year (₹50,000 for seniors).
More tax terms
Section 80CSection 80C lets you deduct up to ₹1.5 lakh a year from your taxable income for specified investments and expenses — but only under the old tax regime.Section 80DSection 80D allows a deduction for health-insurance premiums — up to ₹25,000 for yourself and family, and another ₹25,000 (₹50,000 if senior citizens) for parents.LTCGLTCG is the profit on an asset held beyond a threshold period — and it is taxed at a lower rate than short-term gains.STCGSTCG is the profit on an asset sold within the short-term holding period, taxed at a higher rate than long-term gains.Section 87A RebateThe Section 87A rebate cancels your income tax entirely if your taxable income is at or below a threshold — making lower incomes effectively tax-free.Standard DeductionThe standard deduction is a flat amount subtracted from salary income before tax, with no bills or proof required.