Tax Deducted at Source (TDS) — Your Rights in Maharashtra
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
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.
How Maharashtra differs from central law
TDS (Tax Deducted at Source) is a central income tax mechanism, and the same rules apply across all states. However, in Maharashtra, property transactions attract TDS at 1% under Section 194-IA of the Income Tax Act if the sale consideration exceeds Rs. 50 lakh. Given Maharashtra's high property values (especially in Mumbai and Pune), this provision affects a large number of property transactions in the state.
Additionally, buyers must ensure that the TDS on property purchase is deposited using Form 26QB and the TDS certificate (Form 16B) is issued to the seller within the prescribed timelines. Maharashtra's stamp duty on property (5-7% depending on location) is separate from TDS and is payable at the time of registration. The Sub-Registrar will not register the sale deed without proof of stamp duty payment, but TDS compliance is the buyer's responsibility and is verified during income tax assessment.
Additional Steps in Maharashtra
For property TDS (Form 26QB), file online at tin-nsdl.com. For TDS credit mismatches, check Form 26AS on the income tax portal. For stamp duty on property, use the IGR Maharashtra portal at igrmaharashtra.gov.in. TDS grievances can be raised on the income tax e-filing portal or at the local TDS office (CPC-TDS, Ghaziabad for central processing).
Relevant Law: Income Tax Act, 1961, Section 194-IA; Maharashtra Stamp Act, 1958
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.
Legal Resources
We may earn a commission if you use these services — at no extra cost to you. This supports our mission to make legal information free for everyone.