Let’s discuss some tax deduction cases:

  1. Salary

An individual who pays salary has to deduct TDS on such amount. Therefore, salary is paid according to an employment agreement.

  1. Interest

An individual who pays interest which is more than Rs.5,000 to anyone has to deduct TDS.

  1. Rent

Before making rent payments, you are required to deduct TDS. Rent can be lease, tenancy or any other similar arrangement. It is paid for land & building, furniture, plant & machinery etc.

No Tax Deduction

TDS will not be collected when payments made to the Government of India, the reserve Bank of India etc. or when interest is credited to:

tax deduction cases