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TDS & Tax · TDS lesson 7 of 7
Final quiz and glossary
Ten questions across all the lessons, then a glossary you can keep.
Final quiz
Answer all ten questions, press Check my answers and read the note under each one. You can start again as often as you like.
1. What does TDS stand for?
TDS means Tax Deducted at Source.
2. Which number does a deductor need?
The deductor needs a TAN; PAN identifies the taxpayer.
3. A company pays a professional ₹80,000 in the year (no earlier payments). Rate 10%. TDS?
10% × ₹80,000 = ₹8,000, since the total is above the ₹50,000 limit.
4. An individual contractor is paid ₹20,000 once (nothing else this year). TDS?
Below ₹30,000 for one payment and below ₹1,00,000 for the year, so no TDS.
5. An LLP is paid ₹50,000 contractor fee in one go. TDS at 2% is…
A single payment above ₹30,000 triggers TDS; 2% of ₹50,000 is ₹1,000.
6. Usual deposit deadline for tax deducted in July?
7th of the next month.
7. Q4 (January–March) return is due on…
31 May.
8. Late deposit interest is…
1.5% per month or part of a month.
9. Under the Income-tax Act 2025, salary TDS is in section…
Section 392 covers salary; 393 covers most other payments.
10. Where can a taxpayer check TDS reported against their PAN?
Form 26AS and the AIS list TDS reported against the PAN.
Glossary
- Deductor
- Person or business that makes a payment and deducts TDS.
- Deductee
- Person who receives the payment and has TDS deducted.
- PAN
- Permanent Account Number — 10-character ID for a taxpayer.
- TAN
- Tax Deduction and Collection Account Number — ID of the person who deducts TDS.
- Tax Year
- The 12 months from 1 April to 31 March; the term used in the Income-tax Act 2025.
- Threshold
- The limit below which TDS is not needed for a type of payment.
- Section
- The part of the tax law that sets the rule for a type of payment. Example: 194C for contractors (older numbering).
- Challan
- The payment slip used to deposit tax.
- TDS return
- A quarterly statement that reports all deductions and deposits.
- TDS certificate
- Proof given to the receiver of the tax deducted (Form 16 / 16A, called Form 130 / 131 under the new Act).
- Form 26AS / AIS
- Portal statements that show tax reported against your PAN.
- TCS
- Tax Collected at Source — tax collected by a seller from a buyer on certain sales.
- Advance tax
- Tax paid by the taxpayer in instalments during the year.
- Self-assessment tax
- Balance tax paid by the taxpayer before filing the return.
- Lower deduction certificate
- A certificate that lets a receiver have less (or no) TDS deducted when the expected tax is low.
What next?
- Pair these guides with the Everyday skills guides (Excel basics, email writing, resume basics).
- Make a one-page summary of the TDS cycle and the chart in your own words — that is a good first item for your portfolio.
- Read the official guidance on the Income Tax Department portal to see the latest rules.
Learning material for beginners, checked in October 2026. It is not tax or legal advice. Tax rules, rates and due dates change, and different websites sometimes show different details. Always confirm on the Income Tax Department portal (incometax.gov.in) or with a Chartered Accountant before applying anything in real work. All names and amounts in the examples are made up.