Calculate Tax Deducted at Source (TDS) on salary, interest, rent, and professional fees.
A TDS (Tax Deducted at Source) calculator is a free online tool that helps you calculate the TDS amount to be deducted on various payments like salary, interest, rent, professional fees, etc. Enter the payment amount and category to instantly see TDS rate and deduction amount.
TDS is a system where tax is collected at the source of income generation itself, rather than at year-end. The payer (deductor) deducts a certain percentage of payment as tax and deposits it to the government on behalf of the payee (deductee). TDS applies to salary, interest, rent, professional fees, commission, contracts, and many other payments. The deducted amount is reflected in Form 26AS and can be claimed as tax credit when filing ITR. TDS ensures regular tax collection throughout the year and prevents tax evasion.
A TDS calculator empowers you to:
TDS calculation depends on payment type and applicable section:
Formula:
TDS Amount = Payment Amount × TDS Rate
Net Payment = Payment Amount - TDS Amount
TDS Rates for Different Sections:
1. Section 192 - Salary:
2. Section 194A - Interest (Bank/FD):
3. Section 194I - Rent:
4. Section 194J - Professional/Technical Fees:
5. Section 194C - Contract:
6. Section 194H - Commission/Brokerage:
7. Section 194 - Dividends:
8. Section 194B - Lottery/Winnings:
Example Calculation (Professional Fees):
Payment: ₹1,00,000 | PAN: Yes | Section: 194J
Important Notes:
Consequences of non-deduction/late deduction: (1) Interest: 1% per month or part of month from due date till actual deduction (Section 201(1A)). (2) Penalty: Minimum ₹10,000 up to TDS amount (Section 271C). (3) Disallowance: 30% of expense disallowed if TDS not deducted (Section 40(a)(ia)). (4) Prosecution: Imprisonment 3 months to 7 years for willful evasion. Example: TDS ₹10,000 due on 1st April, deducted on 1st July. Interest: 3 months × 1% × ₹10,000 = ₹300. Late deposit interest: Additional 1.5% per month from deduction till deposit. Penalty: ₹10,000-₹10,000 (same as TDS). Total cost: ₹10,300 + penalty ≈ ₹20,000! Recommendation: Deduct and deposit TDS on time to avoid heavy penalties. Use tax calendar to track due dates.
TDS vs TCS: TDS (Tax Deducted at Source): Deducted by payer from payment made. Applies to income payments (salary, interest, rent, fees). Deducted before payment. Governed by Sections 192-206. Example: Employer deducts TDS from salary. TCS (Tax Collected at Source): Collected by seller from buyer at time of sale. Applies to sale of goods (scrap, minerals, motor vehicles >₹10L, etc.). Collected over and above sale price. Governed by Sections 206C. Example: Car dealer collects TCS when selling car worth ₹15L. Key difference: TDS = Payment made by you → Tax deducted. TCS = Payment made to you → Tax collected. Both appear in Form 26AS and can be claimed as credit in ITR. Recent: TCS on foreign remittance >₹7L (LRS), overseas tour packages. TCS rates: 0.1% to 1% (generally lower than TDS).
Yes! Excess TDS is fully refundable when filing ITR. Process: (1) Check Form 26AS: Verify TDS deducted and deposited to your PAN. (2) File ITR: Claim all TDS as tax credit. (3) Calculate tax: If TDS > actual tax liability → Refund. (4) Submit ITR: Refund processed in 3-8 weeks (if e-verified). Example: Annual income ₹6L. TDS deducted ₹40,000. Actual tax: ₹15,600 (new regime). Refund: ₹40,000 - ₹15,600 = ₹24,400. Common scenarios for excess TDS: (1) Multiple employers (both deducted TDS on full salary without considering other). (2) Investment in 80C declared late - employer deducted higher TDS. (3) Bank deducted TDS on interest but total income below taxable limit. (4) Resigned mid-year - employer deducted TDS assuming full year employment. Important: File ITR even if income below taxable limit to claim TDS refund. Refund credited to bank account registered with PAN. Process faster with e-verification (Aadhaar OTP/Net banking).
Form 15G/15H: Self-declaration to bank/deductor that your total income is below taxable limit, requesting no TDS deduction. Form 15G: For individuals below 60 years. Form 15H: For senior citizens (60+ years) and super senior citizens (80+ years). Eligibility: Total income (including interest) is below basic exemption (₹2.5L for 15G, ₹3L/₹5L for 15H). Tax liability is NIL. When to submit: At the start of financial year to bank, before interest is credited. Benefits: No TDS deducted on FD/bank interest, receive full interest amount, no need to claim refund later. Example: Senior citizen, pension ₹2.5L, FD interest ₹60,000, Total ₹3.1L. Normally TDS ₹6,000 (10% on ₹60K). Submit Form 15H → No TDS → Receive full ₹60,000 interest. Important: Cannot submit if tax liability exists. One form per bank/branch per FY. Invalid if total income exceeds exemption - bank will deduct TDS + penalty. Form valid for 1 year only - resubmit every April.
No PAN = Higher TDS rate of 20% (or actual rate, whichever is higher). Rationale: Discourage non-PAN transactions, ensure tax compliance. Applicable sections: 194A (Interest): Normal 10% → 20% if no PAN. 194C (Contract): Normal 1-2% → 20% if no PAN. 194H (Commission): Normal 5% → 20% if no PAN. 194I (Rent): Normal 2-10% → 20% if no PAN. 194J (Professional fees): Normal 10% → 20% if no PAN. Exception: Section 194B/194BB (Lottery/Horse racing): 30% rate applies whether PAN provided or not. Example: Professional fees ₹1,00,000. With PAN: TDS ₹10,000 (10%). Without PAN: TDS ₹20,000 (20%). Loss: ₹10,000 extra TDS deducted! Impact: Deductee has to wait longer for refund when filing ITR (if actual tax lower). Deductor's duty: Verify PAN before making payment. If payee doesn't have PAN, ask them to apply immediately (process takes 2-3 weeks). Recommendation: Always provide PAN to avoid 20% TDS. Apply PAN online at www.incometax.gov.in (free, instant e-PAN).
TDS on salary (Section 192): Employer deducts TDS monthly based on estimated annual tax liability. Calculation: (1) Estimate total annual salary (basic + allowances + bonus). (2) Add perquisites (rent-free accommodation, company car, etc.). (3) Deduct: Standard deduction (₹50K), 80C (₹1.5L if submitted proof), 80D, HRA, LTA, etc. (4) Calculate taxable income. (5) Apply tax slab (old/new regime as per employee's choice). (6) Divide annual tax by 12 = Monthly TDS. Example: Annual salary ₹12L, 80C ₹1.5L, 80D ₹25K, HRA ₹1.5L, Standard ₹50K. Taxable: ₹12L - ₹3.25L = ₹8.75L. Tax (old regime): ₹1.45L. Monthly TDS: ₹12,083. Important: Submit investment proofs (PPF, insurance, etc.) to employer before December to reduce TDS. If not submitted, higher TDS deducted, claim refund in ITR. Form 12BB: Declaration form for submitting investment proofs to employer. Employer issues Form 16 (TDS certificate) in May-June after FY ends.
TDS due dates: Deduction: At time of payment/credit (whichever is earlier). Deposit: 7th of next month (for most sections). Exception: March TDS can be deposited till 30th April. Example: Salary paid on 1st June → TDS must be deposited by 7th July. Payment process: (1) Login to www.incometax.gov.in. (2) Go to e-Pay Tax → Select Challan 281. (3) Choose TDS section (192 for salary, 194A for interest, etc.). (4) Enter amount and pay via net banking. (5) Download challan copy (BSR code + challan serial number). Quarterly returns: Form 24Q: TDS on salary (quarterly). Form 26Q: TDS on non-salary payments (quarterly). Due dates: Q1 (Apr-Jun): 31st July. Q2 (Jul-Sep): 31st October. Q3 (Oct-Dec): 31st January. Q4 (Jan-Mar): 31st May. Late filing penalty: ₹200/day (max ₹67,500 per TDS statement). TDS certificate: Form 16 (salary) and 16A (non-salary) must be issued within 15 days of filing return.
Form 26AS: Annual tax statement showing all tax credits in your name (TDS, TCS, advance tax, self-assessment tax, refunds). How to check: (1) Login to www.incometax.gov.in with PAN. (2) Go to "My Account" → View Form 26AS (Tax Credit). (3) Select Financial Year. (4) View/Download statement. What it shows: Part A: TDS deducted on salary, interest, rent, etc. Part B: TDS on sale of property. Part C: TCS (tax collected at source). Part D: Advance tax and self-assessment tax paid. Part E: Refunds. Part F: SFT (Statement of Financial Transactions - high-value purchases). Importance: Verify all TDS entries before filing ITR. Claim TDS credit only if reflected in 26AS. Mismatch: If TDS deducted but not in 26AS → Deductor hasn't deposited/filed return → Contact deductor immediately. If TDS in 26AS but not in your 16/16A → Obtain certificate from deductor. Timeline: Updated quarterly. For real-time, check AIS (Annual Information Statement) - shows recent transactions within 7 days.
Yes! Apply for Lower/NIL TDS Certificate (Section 197) if expected tax liability is lower than TDS being deducted. When to apply: You have losses carried forward. Major investments/deductions available (80C, 80D, home loan interest). Income below taxable limit but TDS being deducted. Senior citizen with only pension income <₹5L. Process: (1) Login to incometax.gov.in → e-File → Request for Lower/Nil TDS Certificate. (2) Mention reason (80C investment proof, losses, income below threshold). (3) Submit online application. (4) AO (Assessing Officer) verifies and issues certificate if valid. (5) Download certificate (Form 13), submit to deductor. (6) Deductor deducts lower TDS as per certificate. Validity: 1 year (can be extended). Example: Expected annual income ₹6L, 80C ₹1.5L, 80D ₹25K, loan interest ₹2L. Taxable: ₹2.25L. Tax: ₹0. Currently TDS ₹50K being deducted. Apply for NIL certificate → No TDS deducted → Full salary received. Processing time: 15-30 days. Advantage: Get full payment upfront instead of waiting for refund.
TDS on property sale (Section 194IA): Buyer must deduct TDS when purchasing immovable property (land/building). Rate: 1% of sale consideration (if property value >₹50 lakh). Threshold: ₹50 lakh. Below this, no TDS. Applies to: Residential property, commercial property, agricultural land in urban areas. When to deduct: At time of making payment to seller (usually at registration). Process: (1) Buyer pays 99% to seller. (2) Buyer deducts 1% as TDS. (3) Deposits TDS within 30 days using Challan 26QB. (4) Issues TDS certificate (Form 16B) to seller within 15 days. Example: Flat sold for ₹80 lakh. TDS: ₹80,000 (1%). Seller receives: ₹79.2 lakh cash + ₹80K TDS credit (claims in ITR). Exemptions: Purchase from government, Purchase from resident Indian (by non-resident: different rate 20% applicable). Seller's benefit: TDS credit reduces capital gains tax liability when filing ITR. Penalty: If buyer doesn't deduct TDS, still liable to pay + interest (1% per month) + penalty equal to TDS amount. Note: Additional TCS 1% on seller if property sale >₹50L (if not resident Indian).
TDS on EPF withdrawal (Section 192A): Applicable if EPF withdrawn before completing 5 years of continuous service. No TDS: If withdrawn after 5 years of continuous service. If PAN provided and withdrawal <₹50,000. If withdrawn due to termination of employment due to ill health, discontinuation of business, etc. TDS rate: 10% (if PAN provided and withdrawal <₹50,000 in FY). 10% (if PAN provided and withdrawal ≥₹50,000 in FY). 34.608% (if PAN NOT provided) - Highest rate! Calculation: On taxable portion only (not entire withdrawal). Interest is fully taxable. Example: EPF balance ₹5L, withdrawn after 3 years, PAN provided. Employer contribution + interest: ₹3L (taxable). TDS: ₹3L × 10% = ₹30,000. Net received: ₹4,70,000. Tax treatment in ITR: If actual tax liability is 30% → Pay additional ₹60,000. If actual tax is 5% → Get ₹15,000 refund. Recommendation: Withdraw EPF only after 5 years to avoid TDS and make withdrawal tax-free. Submit Form 15G/15H if total income below taxable limit to avoid TDS.
