Is TDS Below ₹100 Good or Bad?
Understanding Micro TDS Deductions in FY 2024–25 | AY 2025–26
If you’ve seen a TDS amount below ₹100 deducted from your salary, bank interest, or other income, you might wonder:
“Is it good if TDS is less than ₹100? Should I worry about it?”
Let’s break this down clearly.
✅ What Does TDS Below ₹100 Mean?
A TDS amount below ₹100 means that the tax deducted on a particular transaction or income is very small, based on:
• The nature of income
• The deduction rate (e.g., 10% for interest, 5% for rent, etc.)
• The amount paid to you
💡 It is neither good nor bad—it's just a mathematical outcome of the tax rate applied to your income.
📘 Why TDS May Be Less Than ₹100
| Situation | Example |
| Bank FD interest below ₹1,000 | ₹700 × 10% = ₹70 TDS |
| Low contractor fee received | ₹1,000 × 1% = ₹10 TDS |
| Salary TDS adjusted for lower income | Net annual tax spread monthly |
So, a small TDS deduction indicates a small income/payment or a low tax slab, not necessarily a good or bad tax position.
🧾 Should You Be Concerned About Low TDS?
It depends on your overall income. Ask yourself:
• ✅ Have you received other payments with higher TDS elsewhere?
• ✅ Is your total annual income below the taxable limit?
• ❗ If your income is taxable, TDS < ₹100 may indicate under-deduction
→ You may need to pay self-assessment tax later while filing ITR
🔍 Where to Track TDS?
• Form 26AS on incometax.gov.in
• AIS (Annual Information Statement)
These will show even ₹1 deducted as TDS.
✅ Can You Claim TDS Below ₹100?
Yes.
You can claim any amount of TDS, even if it’s just ₹1, as long as:
• It reflects in Form 26AS/AIS
• You declare the associated income in your ITR
💡 No minimum limit exists to claim a TDS refund.
🧠 What Does a TDS Below ₹100 Indicate?
| Scenario | Meaning |
| Your income is low | No major tax burden—possibly no tax due |
| Your payer deducted correctly | System-calculated deduction, even if tiny |
| May need review if taxable | Ensure you don’t underpay final taxes |
Final Words
TDS below ₹100 is not a problem—it’s just a reflection of a small transaction or a low income slab.
However, if your income is taxable and TDS throughout the year is too low, you may have to pay tax at the time of ITR filing.
Our experts will review your Form 26AS and help you understand what low TDS means for your filing and refunds.
👉https://callmyca.com/tds-return-filing
