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
Don’t let monthly TDS surprises affect your take-home pay. Visit Callmyca.com to get expert help in tax planning, TDS management, and ITR filing—so you save smarter and earn better. Let the experts handle your tax worries while you focus on what you love!
