Is TDS Deducted Every Month?
Is TDS Deducted Every Month?
TDS Deduction Frequency Explained for Salary & Other Payments | FY 2025–26
If you're receiving regular income—whether it's a salary, rent, or professional fee—you may notice that some amount is deducted before payment. That’s TDS (Tax Deducted at Source).
One of the most common questions people ask is:
“Is TDS deducted every month?”
Let’s break this down clearly.
✅ Is TDS Deducted Monthly?
🔹 For Salary – Yes, TDS Is Deducted Monthly
Under Section 192, employers are required to deduct TDS from salary every month, based on:
• Your projected annual income
• Applicable tax slab rates
• Investments/deductions declared by you (like 80C, HRA, etc.)
📌 The monthly TDS is adjusted across the financial year. If your salary increases mid-year or you declare new deductions, TDS may be recalculated and re-adjusted.
🔹 For Other Payments – TDS Deduction Depends on Frequency of Payment
TDS is deducted whenever a payment is made, not necessarily every month. Here's a quick summary:
| Type of Income | Section | Deduction Frequency |
| Salary | 192 | ✅ Monthly (mandatory) |
| Rent (by individuals > ₹50K) | 194-IB | ✅ Monthly or on each payment |
| Professional Fees | 194J | On every payment |
| Contractor Payment | 194C | On every payment/invoice |
| Interest on FD | 194A | Quarterly or yearly (as paid) |
| Property Purchase | 194- IA | One-time (on transaction) |
💡 For most non-salary cases, TDS is deducted at the time of credit or payment, whichever is earlier.
📘 Example: TDS on Salary
• Annual Salary: ₹9,00,000
• Standard deduction: ₹50,000
• Taxable income: ₹8,50,000
• Approximate total tax: ₹73,400
✅ Monthly TDS = ₹73,400 ÷ 12 ≈ ₹6,100/month
This deduction is adjusted each month, and the final TDS is shown in your Form 16 & 26AS.
❗ What If TDS Is Not Deducted Monthly?
• In the case of salary, non-deduction or short deduction may result in a penalty for an employer under Section 201.
• In other payments, the payer (like banks, clients, tenants) is liable to deduct at the time of payment/credit.
🧾 Where to Track Monthly TDS?
You can view total monthly TDS from all sources using:
• Form 26AS
• Annual Information Statement (AIS) on https://www.incometax.gov.in
• Form 16 (for salary) or Form 16A (for non-salary)
Final Words
✅ Yes, TDS is deducted monthly from salaries
📆 For non-salary payments, TDS is deducted at the time of each transaction
Understanding your TDS timeline helps you track your taxes, avoid mismatches, and plan for refunds in advance.
