TDS Calculator

Calculate Tax Deducted at Source (TDS) for various payments as per the Indian Income Tax Act.

TDS Calculation Details

Type of Income

Gross Amount (₹)

Applicable TDS Rate

TDS Amount

₹ 0

Net Amount Payable

₹ 0

Important TDS Information

Select an income type to see relevant TDS information and thresholds.

Understanding Tax Deducted at Source (TDS)

TDS is a mechanism by the Indian Income Tax Department to collect tax at the very source of income.

What is TDS?

Tax Deducted at Source (TDS) is a system introduced by the Indian Income Tax Department, where a person (deductor) who is liable to make payment of a specified nature to another person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee, from whose income tax has been deducted, receives credit of the amount deducted and can claim it while filing their income tax return.

Key TDS Sections and Rates

TDS rates vary significantly based on the nature of payment and the recipient's PAN availability. Here are some common sections:

Section 192 (Salaries): TDS is deducted by the employer based on the employee's applicable income tax slab rates, after considering exemptions and deductions.
Section 194A (Interest other than Interest on Securities): Generally 10% if PAN is provided. Thresholds apply (e.g., ₹40,000 for banks/co-op societies/post office, ₹5,000 for others). 20% if PAN is not provided.
Section 194C (Payment to Contractors): 1% for individuals/HUFs, 2% for others. Thresholds apply (e.g., single payment > ₹30,000, aggregate > ₹1,00,000). 20% if PAN is not provided.
Section 194J (Fees for Professional or Technical Services): Generally 10%. Certain specific services (e.g., call center, royalty for film distribution) may have lower rates. 20% if PAN is not provided.
Section 194I (Rent of Land, Building, or Furniture): 10% for plant & machinery, 10% for land/building/furniture if payment exceeds ₹2,40,000 annually. 20% if PAN is not provided.
Section 194IB (Rent by Individuals/HUFs not liable for audit): 5% if rent exceeds ₹50,000 per month. No PAN required for lower rate, but 20% applies if PAN not provided or invalid.
Section 194H (Commission or Brokerage): 5%. Threshold ₹15,000. 20% if PAN is not provided.

Disclaimer: TDS rates and thresholds are subject to change by government notification. Always refer to the latest Income Tax Act provisions or consult a tax professional for precise advice. This calculator provides an estimate based on generally applicable rates.

Importance of PAN for TDS

The Permanent Account Number (PAN) plays a crucial role in TDS compliance. If the recipient does not furnish their PAN to the deductor, TDS is required to be deducted at a higher rate (usually 20%) or at the rate specified in the relevant section, whichever is higher.

It is therefore essential for all individuals and entities receiving income subject to TDS to provide their valid PAN to the deductor to avoid higher tax deductions.

Frequently Asked Questions

Any person or entity making specified payments, which exceed certain threshold limits, is liable to deduct TDS. This includes individuals, HUFs, companies, firms, etc., with some exceptions for individuals/HUFs whose books are not required to be audited.

TDS is deducted at the time of payment or at the time of credit of income to the payee's account, whichever is earlier.

If excess TDS is deducted, the deductee can claim a refund of the excess amount while filing their Income Tax Return (ITR), provided the TDS amount is reflected in their Form 26AS.