How Can I Check My TDS Eligibility?
How Can I Check My TDS Eligibility?
A Simple Guide to Know Whether TDS Applies to You | FY 2024–25 | AY 2025–26
If you're a salaried employee, freelancer, landlord, business owner, or even a student with a savings account, you've probably encountered the term TDS (Tax Deducted at Source).
But the question is:
“Am I eligible for TDS deduction, or should I deduct TDS from someone else?”
Let’s walk you through how to check your TDS eligibility as a deductee (someone from whom TDS is deducted) and a deductor (someone who is required to deduct TDS).
✅ 1. Are You Eligible for TDS Deduction? (As a Payee)
You are subject to TDS deduction if:
• You earn income from salary, bank interest, rent, professional fees, commission, or property sale
• The payment you receive exceeds the prescribed threshold under TDS provisions
• You have not submitted Form 15G/15H (in case of exempt income)
• Your PAN is linked and valid
🔍 How to Check:
| Income Source | TDS Threshold | Check Eligibility |
| Salary | No threshold – based on slab | Always deducted (if taxable) |
| Bank FD Interest | ₹40,000 (₹50,000 for seniors) | Check interest earned via AIS/26AS |
| Rent Income | ₹2.4 lakh/year | TDS deducted by the tenant |
| Freelancing/Professional Fee | ₹30,000/year | TDS @ 10% applicable |
| Commission | ₹15,000/year | TDS @ 5% applicable |
| Property Sale | ₹50 lakh | Buyer deducts 1% TDS |
✅ 2. Are You Required to Deduct TDS? (As a Payer)
You are liable to deduct TDS if:
• You’re a business or professional with turnover above the audit limit (₹1 Cr/₹50 L)
• You’re paying someone more than the threshold under the relevant TDS sections
• You’re an individual/HUF paying rent over ₹50,000/month (under Section 194-IB)
• You’ve purchased property above ₹50 lakh (Section 194-IA)
🔍 How to Check:
Ask yourself:
• Are you paying contractor/professional rent/commission above the limit?
• Is your turnover exceeding ₹1 crore (business) or ₹50 lakh (profession)?
• Are you paying a salary? Then TDS under Section 192 applies.
📌 If yes, you're mandated to deduct TDS and file quarterly TDS returns.
✅ 3. Tools to Help Check TDS Eligibility
| Tool | Use Case |
| Form 26AS | Shows if TDS has been deducted from your income |
| AIS (Annual Info Statement) | Gives detailed insight into all income & TDS |
| Income Tax Portal Calculator | Helps compute tax & TDS balance |
| Form 15G/15H | Submit to avoid TDS if the income is below the limit |
| CA or TDS Consultant | Helps assess your liability to deduct or pay TDS |
🔄 What If TDS Was Wrongly Deducted or Not Deducted?
• Wrongly deducted? → File ITR and claim refund
• Not deducted, but should have been? → You may be liable for interest/penalty under Section 201
Final Words
Checking your TDS eligibility depends on:
• The source and amount of income you receive (as a payee)
• The nature and volume of payment you make (as a payer)
Always refer to threshold limits under TDS sections and verify using Form 26AS, AIS, or by consulting a tax expert.
