Tax Deducted at Source (TDS) — Your Rights in Kerala

Source: Income Tax Act, 1961, ss. 192–206AA; Income Tax Rules, 1962, Rule 31A; CBDT Circular No. 4/2008

Reviewed by the Commoner Law Editorial Team. Sourced from Indian central (Union) law — Constitution of India, central Acts of Parliament, and Supreme Court decisions. State-level information reflects each state's own Acts and High Court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards

Indian Central Law

What is this right?

TDS is the mechanism by which a payer deducts income tax at source before crediting salary, interest, rent, professional fees, or other payments to the recipient.

Right to Form 16/16A: Every TDS deductor must issue Form 16 (for salary) or Form 16A (for other payments) to you annually — Form 16 by 15 June; Form 16A within 15 days of the end of each quarter. Failure to issue Form 16/16A attracts a penalty of ₹100 per day on the deductor.
Right to verify deductions via Form 26AS / AIS: All TDS deducted against your PAN is reflected in your Form 26AS (Annual Tax Credit Statement) and Annual Information Statement (AIS) on incometax.gov.in — verify this before filing your ITR.
Lower TDS certificate (s. 197): If your total income is likely to be below the taxable threshold, you can apply to the Assessing Officer for a certificate authorising deduction at a lower rate or nil rate.
No PAN / Higher TDS (s. 206AA): If you do not provide your PAN to the deductor, TDS is deducted at 20% (or the applicable rate, whichever is higher) — always provide your PAN.
Bank FD interest: Banks deduct TDS at 10% if interest exceeds ₹40,000 per year (₹50,000 for senior citizens) — submit Form 15G/15H if your total income is below the taxable limit to avoid TDS.

When does it apply?

Your employer or bank has deducted TDS from your salary or interest income.
A client or company has deducted TDS on professional fees or contract payments.
TDS shows up in Form 26AS but not in Form 16/16A, or vice versa — there is a mismatch.

What to Do If TDS Has Been Incorrectly Deducted or Not Credited in India

Always provide your PAN to every payer (employer, bank, tenant, client) to ensure TDS is deducted at the correct rate.
Submit Form 15G (below 60 years) or Form 15H (60+ years) to your bank at the start of each financial year if your total income is below the taxable limit — this prevents TDS on bank interest.
Verify Form 26AS against Form 16/16A — if TDS deducted by the employer is not reflecting, contact your employer to file a correction in their TDS return.
If TDS has been deducted and not deposited by the deductor (credit not in Form 26AS), file a complaint on the TRACES portal (tdscpc.gov.in).

What should you NOT do?

Do not assume Form 16 is automatically accurate — cross-check every figure against your actual salary slips and investment proofs.
Do not submit Form 15G/15H if your income actually exceeds the taxable limit — submitting a false declaration is a punishable offence (s. 277).
Do not ignore a mismatch between Form 26AS and your ITR — file a revised return if needed, before the deadline.

Kerala Law

How Kerala differs from central law

Tax Deducted at Source (TDS) in Kerala follows the central Income Tax Act, 1961 uniformly. Employers, banks, and other specified deductors in Kerala must deduct TDS at prescribed rates and deposit it with the central government. The significant factor for Kerala employees is that Professional Tax is also deducted at the state level under the Kerala State Tax on Professions, Trades, Callings and Employments Act, 1996, alongside TDS under the Income Tax Act as payroll deductions.

Kerala's large NRI population makes TDS on property transactions and NRI income particularly relevant. Under Section 195 of the Income Tax Act, any person paying income to an NRI must deduct TDS. For property purchases from NRIs in Kerala, the buyer must deduct TDS at 20% (for long-term capital gains) or at applicable slab rates (for short-term capital gains). NRIs selling property in Kerala can apply for a lower TDS certificate under Section 197 if the actual tax liability is lower than the standard deduction rate.

TDS on salary in Kerala reflects the absence of professional tax — the net take-home pay for employees in Kerala is marginally higher compared to employees at the same salary level in states that levy professional tax.

Additional Steps in Kerala

Check your TDS credits on Form 26AS at incometax.gov.in. If TDS has been deducted but not reflected, contact the deductor (employer/bank) and verify the TAN (Tax Deduction Account Number). For excess TDS, claim a refund in your income tax return. For NRI TDS issues, contact the Income Tax office, Kochi or consult a chartered accountant. TRACES helpline: 1800-103-0344.

Relevant Law: Income Tax Act, 1961, Sections 192-197; Kerala State Tax on Professions, Trades, Callings and Employments Act, 1996

Common Questions

When does tax deducted at source (tds) — your rights apply?

Your employer or bank has deducted TDS from your salary or interest income.A client or company has deducted TDS on professional fees or contract payments.TDS shows up in Form 26AS but not in Form 16/16A, or vice versa — there is a mismatch.

What should I do if TDS deducted from my salary or income is wrong or not showing in my Form 26AS in India?

Always provide your PAN to every payer (employer, bank, tenant, client) to ensure TDS is deducted at the correct rate.Submit Form 15G (below 60 years) or Form 15H (60+ years) to your bank at the start of each financial year if your total income is below the taxable limit — this prevents TDS on bank interest.Verify Form 26AS against Form 16/16A — if TDS deducted by the employer is not reflecting, contact your employer to file a correction in their TDS return.If TDS has been deducted and not deposited by the deductor (credit not in Form 26AS), file a complaint on the TRACES portal (tdscpc.gov.in...

What mistakes should I avoid with tax deducted at source (tds) — your rights?

Do not assume Form 16 is automatically accurate — cross-check every figure against your actual salary slips and investment proofs.Do not submit Form 15G/15H if your income actually exceeds the taxable limit — submitting a false declaration is a punishable offence (s. 277).Do not ignore a mismatch between Form 26AS and your ITR — file a revised return if needed, before the deadline.

Tax Deducted at Source (TDS) — Your Rights in other states

Same topic, different jurisdiction. Pick the one that applies to you.