TDS Full Form: Check Form 168/26AS, Form 130, Form 121, Refund
Independent guide. We are not part of the Income Tax Department, and we never ask for your PAN password, account details or OTP.
TDS stands for Tax Deducted at Source. Whoever pays you (your employer, bank, tenant or client) cuts part of the payment as income tax and deposits it with the government against your PAN. You see it in Form 168 (earlier Form 26AS) and the AIS, and claim it in your return. Extra TDS comes back as a refund.
- Full form
- Tax Deducted at Source
- Law (from 1 Apr 2026)
- Income-tax Act, 2025, mainly sections 392–397
- Who deducts
- The payer (deductor): employer, bank, tenant, client
- Credit shows in
- Form 168 (earlier 26AS) and AIS
- Your certificate
- Form 130 (salary, earlier Form 16); Form 131 (other, earlier 16A)
- Avoid TDS if no tax is due
- Form 121 (earlier 15G/15H)
- No PAN?
- Higher TDS: generally at least 20%
- Excess deducted?
- File your ITR and claim a refund
What is TDS?
TDS collects income tax at the moment income is paid, instead of waiting for you to pay it at the end of the year. The payer deducts the tax and sends it to the government on your behalf. It is not an extra tax: it is an advance payment of your own income tax, credited to your PAN.
New law from 1 April 2026. The Income-tax Act, 2025 replaced the 1961 Act. Income earned up to 31 Mar 2026 is still governed by the 1961 Act (assessment year 2026-27). Income from 1 Apr 2026 falls under the new Act and is taxed by "tax year" (Tax Year 2026-27 onwards); the term "assessment year" is no longer used. Forms have new numbers too, listed in the old and new names table below.
Where TDS is deducted
Salary and pension
Your employer estimates your tax for the year and deducts it from each month's salary. You get Form 130 (earlier Form 16).
Bank interest
Your bank deducts TDS on interest from fixed deposits (FDs) and similar deposits when it crosses the limit, unless you give Form 121.
Rent
A tenant or company paying rent above the limit deducts TDS and gives the landlord a certificate.
Professional and contract fees
A business paying a doctor, consultant, freelancer or contractor deducts TDS before paying the fee.
Buying property
The buyer of property deducts TDS and pays it with a challan-cum-statement (Form 141, earlier 26QB).
Payments to non-residents
Interest on an NRO account and other payments to non-residents also carry TDS.
Rates and limits: they differ by type of payment and change with each Finance Act, so we don't repeat them here. Check the Income Tax Department's official TDS guide and rate chart for the tax year you need.
How TDS on FD interest reaches your PAN
The key link is your PAN. If the payer quotes a wrong PAN, or doesn't file its quarterly statement, the money may have been deducted but the credit won't reach you. Give your correct PAN to every bank and payer, and keep it linked with Aadhaar.
How to check TDS credited to you
Form 168 is your annual tax statement from Tax Year 2026-27 onwards. For years up to 2025-26 the same statement is still called Form 26AS. It lists the TDS and TCS credited to your PAN.
- Log in to the e-filing portal, incometax.gov.in.
- Go to e-File → Income Tax Returns → View Form 168 (Form 26AS for earlier years). You are taken to the TRACES site.
- Choose View/Download Annual Tax Statement, pick the tax year and the format (view online or PDF), and click Proceed.
You can also view it free through your bank's internet banking, if your PAN is mapped to that account.
The AIS is a wider statement: besides TDS and TCS, it shows interest, dividends, securities transactions and other information reported about you. TDS/TCS entries are in Part B.
- Log in to incometax.gov.in.
- Go to e-File → Income Tax Return → View AIS, click Proceed, then the AIS tile.
- Wrong entry? Click the item and use the Feedback option. Your feedback shows beside the reported value, and you get an acknowledgement.
TDS certificates: Form 130 and Form 131
Every deductor must give you a certificate of the tax it deducted. Under the 2025 Act these are issued under section 395(4) and are generated from the deductor's processed quarterly statement, so the figures should match your Form 168.
| New form (from 1 Apr 2026) | Earlier form | What it certifies |
|---|---|---|
| Form 130 | Form 16 | TDS on salary or pension, from your employer. Three parts: A, B and C. |
| Form 131 | Form 16A | TDS on other payments, such as FD interest or professional fees. |
| Forms 132 and 133 | Forms 16B, 16C, 16D, 16E and 27D | Certificates for property purchase, certain rent and contract payments, and TCS. |
Certificates for tax deducted up to 31 Mar 2026 still carry the old numbers (Form 16, 16A).
Higher TDS if you don't give your PAN
No PAN, higher TDS. Under section 397(2) of the 2025 Act, if you don't give your PAN to the payer, tax is deducted at the highest of the normal rate, the rate in force, or 20% (5% for certain purchases and e-commerce payments).
- Inoperative PAN: a PAN that has become inoperative (for example, not linked with Aadhaar) is treated the same way: higher TDS/TCS, no refund, and no interest on a refund for the period it stays inoperative.
- Fix: link your PAN with Aadhaar and give it to every bank and payer. See our PAN guide.
- Certain non-residents are exempt from this rule, subject to conditions.
Form 121: avoid TDS when you owe no tax
If your total income is below the taxable limit, you can ask the payer (usually your bank) not to deduct TDS by giving a declaration in Form 121. It replaced both Form 15G and Form 15H from Tax Year 2026-27, under section 393(6) of the 2025 Act and rule 211 of the Income-tax Rules, 2026.
You can give Form 121 only if both are true: the tax on your estimated total income for the year is nil, and the incomes covered by the declaration stay within the amount not chargeable to tax. (This was Form 15G.)
Only one condition: the tax on your estimated total income for the year must be nil. (This was Form 15H.)
- Give it at the start of the tax year, to each bank or payer, before interest is credited. The payer gives each declaration a unique number and reports it in its quarterly statement.
- If your income is taxable, don't use Form 121; let TDS be deducted or apply for a lower or nil deduction certificate (application in Form 128).
Getting excess TDS back
- Check Form 168/26AS and AIS, and claim exactly the credit shown there. TDS credit belongs to the year in which the income is taxable.
- Pre-validate your bank account on the e-filing portal (My Bank Account). Validation is updated in 10–12 working days. Refunds go only to a validated account in your name: savings, current, cash credit, overdraft or NRO; not loan or PPF accounts.
- File your income tax return (ITR) and e-verify it. Processing starts only after e-verification.
- The refund usually reaches your account in 4–5 weeks. Track it under View Filed Returns. If it fails, raise a refund re-issue request after fixing the bank details.
TDS missing or wrong? What to do
| Problem | Likely cause | What to do |
|---|---|---|
| Deducted, but not in Form 168/26AS | Deductor hasn't filed its quarterly statement yet, or quoted a wrong PAN | Ask the deductor (bank, employer, tenant) to file or correct its TDS statement |
| Wrong amount or a payment you don't recognise | Error by the deductor, or someone used your PAN | Give feedback in AIS and contact the deductor |
| Higher TDS than expected | PAN not given or inoperative | Link PAN with Aadhaar, update it with the payer, claim the excess in your ITR |
| TDS cut although you gave Form 121 | Form given late, or not accepted | Ask the bank; claim the amount as a refund in your ITR |
| Refund not received | Bank account not validated, or name mismatch with PAN | Re-validate the account and request refund re-issue |
Refund scam alert: never share your OTP, card details or banking password with anyone promising a refund, and don't click "refund" links in an SMS. Lost money? Call 1930 or report on cybercrime.gov.in.
TDS vs TCS
| TDS | TCS | |
|---|---|---|
| Full form | Tax Deducted at Source | Tax Collected at Source |
| Who acts | The payer cuts tax from what it pays you | The seller adds tax to what it collects from you (the buyer) on specified sales |
| Where you see it | Form 168/26AS and AIS | Form 168/26AS and AIS |
| Claim it | As tax paid, in your ITR | As tax paid, in your ITR |
Old and new names (Income-tax Act, 2025)
| What it is | Up to 31 Mar 2026 (1961 Act) | From 1 Apr 2026 (2025 Act) |
|---|---|---|
| Annual tax statement | Form 26AS | Form 168 |
| Salary TDS certificate | Form 16 | Form 130 |
| Other TDS certificate | Form 16A | Form 131 |
| No-TDS declaration | Form 15G / 15H | Form 121 |
| TDS on property purchase | Form 26QB | Form 141 |
| Higher rate without PAN | Old section 206AA | Section 397(2) |
| Year | Previous year + assessment year | Tax year |
Timeline
Parliament passes the Income-tax Act, 2025 (Act 30 of 2025) to replace the 1961 Act.
Last day of income under the 1961 Act; that year's TDS stays in Form 26AS and Form 16/16A.
The 2025 Act and the Income-tax Rules, 2026 come into force. "Tax year" replaces previous year and assessment year; Form 168, 130, 131 and 121 take over.
FAQs
What is the full form of TDS?
Tax Deducted at Source: income tax the payer cuts from a payment before paying you, deposited against your PAN.
Is TDS an extra tax?
No. It is an advance payment of your own income tax. You add it to taxes paid in your return; if it is more than your actual tax, you get a refund.
Is Form 26AS gone?
For Tax Year 2026-27 onwards the statement is called Form 168. Form 26AS is still available for years up to 2025-26. Both are opened from e-File → Income Tax Returns on the e-filing portal.
What replaced Form 16 and Form 15G/15H?
Form 130 replaced Form 16 (salary), Form 131 replaced Form 16A, and a single Form 121 replaced both Form 15G and Form 15H, from 1 Apr 2026.
My bank cut TDS on FD interest though my income is below the taxable limit. Can I get it back?
Yes. File your ITR and claim the refund. Next year, give the bank Form 121 at the start of the tax year.
Why is TDS shown in my AIS but not in my bank statement?
Your bank statement shows the interest after TDS. The TDS itself went to the government; check it in Form 168/26AS or AIS.
Why was 20% TDS deducted?
Probably because the payer had no valid PAN for you, or your PAN is inoperative. Link PAN with Aadhaar, update it with the payer, and claim the excess in your return.
Where do I find the current TDS rates?
On the Income Tax Department's official TDS pages at incometaxindia.gov.in. Rates and limits depend on the payment and the tax year.
Official sources
- Income Tax Department – Income-tax Act, 2025 (30 of 2025), as amended by Finance Act, 2026 (accessed 31 Oct 2026)
- CBDT – FAQs on Interplay and Transition to the Income-tax Act, 2025 (accessed 31 Oct 2026)
- PIB – "Prarambh 2026" outreach on the Income Tax Act, 2025 (in force from 1 Apr 2026) (accessed 31 Oct 2026)
- Income Tax Department – Form Mapping Guide, Income-tax Act 1961 to 2025 (accessed 31 Oct 2026)
- Income Tax Department – Form 168 (earlier Form 26AS): view annual tax statement (accessed 31 Oct 2026)
- Income Tax Department – Form Nos. 130–133 (earlier Forms 16/16A/16B/16C/16D/16E/27D) (accessed 31 Oct 2026)
- Income Tax Department – Form No. 130 FAQs (accessed 31 Oct 2026)
- Income Tax Department – Form No. 121 (earlier Forms 15G and 15H) FAQs (accessed 31 Oct 2026)
- Income Tax Department – FAQs on higher rate of TDS under section 397(2) (accessed 31 Oct 2026)
- Income Tax Department – FAQs on Permanent Account Number (inoperative PAN) (accessed 31 Oct 2026)
- Income Tax Department – Tax Deducted at Source (TDS) guide (accessed 31 Oct 2026)
- e-Filing portal – AIS (Annual Information Statement) help (accessed 31 Oct 2026)
- e-Filing portal – Refund Status user manual (accessed 31 Oct 2026)
- e-Filing portal – My Bank Account FAQs (pre-validation for refunds) (accessed 31 Oct 2026)
- TRACES – TDS Reconciliation Analysis and Correction Enabling System (accessed 31 Oct 2026)
- Ministry of Home Affairs – National Cybercrime Reporting Portal (accessed 31 Oct 2026)
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