TDS (Tax Deducted at Source)

TDS (Tax Deducted at Source) is income tax that is deducted from certain payments before they reach you. For example, your employer deducts TDS from your salary, and banks deduct TDS on FD interest above certain thresholds. The deductor remits this tax to the government on your behalf.

At the end of the financial year, the TDS already paid is credited against your total tax liability when you file your return. If too much was deducted, you get a refund; if too little, you pay the balance. Your income tax is calculated with the Income Tax Calculator.