Is TDS Below ₹100 Good or Bad?
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.
