What are the provisions for tax deduction at source (TDS) on payments?

The Income Tax Act mandates deduction of tax at source by the payer on certain types of payments above specified thresholds under Sections 192 to 196D. For example, TDS is deducted on salaries (Section 192), interest income (Section 194A), rent payments (Section 194I), professional fees (Section 194J) etc. The deducted tax is required to be deposited with the government. Note: Finance Act 2025 has introduced a new TDS provision under Section 194R for benefits/perquisites from business/profession exceeding Rs. 20,000 per year. Supporting Case Law: Reddy Engineering & Construction vs Assistant Commissioner of Income Tax (2018 – Karnataka High Court) – Ruled that TDS provisions are mandatory and consequences of non-deduction are attracted. Current Status: TDS provisions continue to be an area of litigation, with conflicting rulings on certain aspects like thresholds, chargeability, and deemed income. Professional advice is recommended.