TDS and advance tax collect tax during the year. Neither mechanism replaces the final income-tax computation.
TDS is withholding, not final liability
A payer may deduct tax when a statutory provision applies. The amount generally appears as a credit in Form 26AS/AIS and is reconciled in the return.
The final result can be higher or lower after all income, eligible deductions, special-rate items, cess, surcharge and credits are considered. No TDS does not mean no taxable income, and TDS deducted does not prove the liability is complete.
Deposit-interest threshold from 1 April 2025
For relevant time-deposit interest paid by a banking company, specified co-operative bank or post office, Section 194A uses ₹50,000 generally and ₹1,00,000 for a resident senior citizen from 1 April 2025. Recurring deposits are included in the provision's time-deposit definition.
Different payer or payment categories can use another threshold. Check the applicable clause rather than applying the bank-deposit figures universally.
Advance tax
Where the statutory conditions apply, advance tax is paid cumulatively during the financial year. The standard cumulative schedule is:
- 15% by 15 June;
- 45% by 15 September;
- 75% by 15 December; and
- 100% by 15 March.
Eligibility, exceptions and interest consequences depend on the taxpayer's facts and current law. Estimate using total expected income and available TDS credits, not salary alone.
Practical checks
- Reconcile Form 26AS/AIS and certificates with the return.
- Include taxable income even where no TDS was deducted.
- Use the correct financial and assessment year.
- Re-estimate when income changes materially.
- Obtain filing-specific help where business income, capital gains or other special treatment is material.
Sources
- Income Tax Department: Section 194A
- Income Tax Department: Advance tax
- Income Tax Department: TDS rates
Educational information, not tax advice.