Let’s discuss some tax deduction cases:
An individual who pays salary has to deduct TDS on such amount. Therefore, salary is paid according to an employment agreement.
An individual who pays interest which is more than Rs.5,000 to anyone has to deduct TDS.
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: