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Income Tax 30 Jul 2026 1 min read

TDS Explained: What Employers and Freelancers Must Know

TDS Explained: What Employers and Freelancers Must Know

Tax Deducted at Source (TDS) means tax is collected at the point income is paid — by the payer, on behalf of the government. If you run a business or work as a freelancer, it affects you either way.

Common cases where TDS applies

  • Salary payments to employees.
  • Professional and contractor fees above threshold limits.
  • Rent, commission and interest payments.

Employer responsibilities

Deduct the right amount, deposit it by the due date, file quarterly TDS returns, and issue Form 16/16A. Missing these invites interest and penalties.

For freelancers

Clients often deduct TDS from your payments. This is not a loss — it is credited against your final tax liability and shows up in your Form 26AS, so always reconcile it before filing your ITR.

We manage TDS returns and Form 16 issuance so employers stay fully compliant.

TDS income tax Form 16 compliance
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