If you have ever received a lower-than-expected cheque, interest, or professional fee. The reason is almost always TDS, withheld by the payer, credited to your PAN, and recoverable only through ITR filing. Every source of income has a rate. Knowing them lets you check that what was deducted is correct, and reclaim any excess.
By the end, you will have the TDS rate for every common Indian income stream and know how to force a lower-or-zero deduction where it legitimately applies.
The rates that cover 95% of individuals
Salary (192). As per slab, averaged monthly. Bank interest > Rs. 40k / year (194A). 10%. Dividend > Rs. 5k (194). 10%. Rent > Rs. 2.4L / year paid by company or audit-case individual (194I). 10%. Professional fees > Rs. 30k (194J). 10%. Contract (194C). 1% individual, 2% company. Online gaming winnings (194BA). 30% flat no threshold. Property purchase > Rs. 50L (194-IA). 1% paid by buyer.
Senior citizens. The Rs. 50k bank-interest lift
Under section 194A, the exemption limit for bank and post-office interest is Rs. 50,000 / year for senior citizens (>= 60), vs Rs. 40,000 for everyone else. Below that, no TDS. Above that, 10%. Section 80TTB then allows the senior citizen to deduct Rs. 50,000 of interest at filing time. So the TDS paid often becomes a refund.
Form 15G / 15H. Zero TDS for low-income filers
If your total income will be below the taxable threshold, submit Form 15G (under 60) or 15H (60+) to the bank / deductor at the start of the year. They stop deducting TDS. Misusing this form when you DO have taxable income is a Rs. 10k penalty under section 277.
No PAN to 20% or applicable rate, whichever higher
Section 206AA: if the payee does not furnish PAN, TDS is deducted at the HIGHER of the slab rate or 20%. Most non-salary TDS becomes 20% instead of 10%.
Key Takeaways
Salary 192, bank interest 194A, fees 194J, contract 194C. Memorise these four codes.
No PAN means 20% TDS minimum; always submit PAN to every deductor.
Form 15G / 15H stops TDS if your total income is below taxable limit.
Senior citizens get Rs. 50k bank-interest exemption vs Rs. 40k for everyone else.
TDS is a pre-payment, not a final tax. File ITR to reconcile and refund the excess.
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