TDS Calculator
Calculate Tax Deducted at Source on your payments
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TDS Summary
TDS (Tax Deducted at Source) Calculator
Tax Deducted at Source (TDS) is a mechanism introduced by the Income Tax Department to collect tax at the point of income generation. It ensures a steady flow of revenue to the government and reduces tax evasion by deducting tax before the income reaches the recipient.
What is TDS?
TDS is the amount deducted from payments such as salary, interest, commission, rent, professional fees, and other specified payments. The person making the payment (deductor) deducts tax at the applicable rate and deposits it with the government on behalf of the payee (deductee).
Common TDS Sections and Rates
- Section 192 - Salary: As per applicable income tax slab
- Section 194A - Interest (other than securities): 10%
- Section 194C - Contractor Payments: 1% (Individual/HUF), 2% (Others)
- Section 194H - Commission/Brokerage: 5%
- Section 194I - Rent: 10% (Land/Building), 2% (Plant/Machinery)
- Section 194J - Professional/Technical Fees: 10% / 2%
- Section 194IA - Property Transfer: 1%
Important TDS Rules
- If the payee does not furnish PAN, TDS is deducted at 20% or the applicable rate, whichever is higher
- TDS must be deposited with the government by the 7th of the following month
- TDS returns must be filed quarterly
- TDS certificates (Form 16/16A) must be issued to the deductee
TDS Compliance
- Obtain TAN (Tax Deduction Account Number) before deducting TDS
- Deduct TDS at the correct rate and time
- Deposit TDS within the prescribed due dates
- File TDS returns on time to avoid penalties
- Issue TDS certificates to payees
Using the TDS Calculator
Enter the payment amount and select the applicable TDS section to instantly calculate the TDS amount, net payment after deduction, and the effective TDS rate. The calculator also shows the annual TDS impact for recurring monthly payments.
Understanding TDS Deductions
This calculator estimates TDS applicable on various types of payments including salary, rent, interest, professional fees, and property sale. Enter the payment type and amount to see the applicable TDS rate and deduction amount. It also shows whether Form 15G/H can be submitted to avoid TDS.
Frequently Asked Questions
What is TDS?
Tax Deducted at Source (TDS) is an advance tax collection mechanism where the payer deducts tax before making a payment. TDS applies to salary, interest, rent, professional fees, commission, and other specified payments. The deducted amount is deposited with the government and credited against your total tax liability.
What are the common TDS rates?
Salary: as per applicable slab; FD interest: 10%; Rent (property): 10% if annual rent exceeds Rs 2.4 lakh; Professional fees: 10%; Commission: 5%; Sale of property: 1% of sale value above Rs 50 lakh. If PAN is not furnished, TDS is deducted at 20%. These rates apply for FY 2025-26.
How do I claim TDS refund?
File your income tax return by the due date. If TDS deducted exceeds your actual tax liability, the excess is refunded to your bank account (linked in ITR). Refunds are typically processed within 1-4 months of filing. Verify your Form 26AS or AIS to ensure all TDS credits are reflected before filing.
When is TDS not deducted?
Submit Form 15G (under 60) or Form 15H (senior citizens) to your bank if your total income is below the taxable limit. This prevents TDS on FD interest. For other incomes, you can apply for a lower/nil TDS certificate from the Income Tax Department using Form 13.
