📊 TDS Calculator
Calculate Tax Deducted at Source instantly — by nature of payment, recipient type & PAN availability
| Section | Nature of Payment | Threshold (₹) | Rate (PAN) | Rate (No PAN) |
|---|---|---|---|---|
| 192A | Premature EPF withdrawal | 50,000 | 10% | 20% |
| 193 | Interest on securities | 10,000 | 10% | 20% |
| 194 | Dividend | 5,000 | 10% | 20% |
| 194A (Other) | Interest (non-bank) | 5,000 | 10% | 20% |
| 194A (Bank) | Interest from bank/PO | 40,000 / 50,000* | 10% | 20% |
| 194B | Lottery / crossword | 10,000 | 30% | 30% |
| 194BB | Horse race winnings | 10,000 | 30% | 30% |
| 194C (Single) | Contractor (single) | 30,000 | 1% / 2%** | 20% |
| 194C (FY) | Contractor (aggregate FY) | 1,00,000 | 1% / 2%** | 20% |
| 194D | Insurance commission | 15,000 | 5% | 20% |
| 194H | Commission / brokerage | 15,000 | 5% | 20% |
| 194I(a) | Rent — plant/machinery | 2,40,000 | 2% | 20% |
| 194I(b) | Rent — land/building | 2,40,000 | 10% | 20% |
| 194IA | Immovable property transfer | 50,00,000 | 1% | 20% |
| 194IB | Rent to landlord | 50,000/month | 5% | 20% |
| 194J (Prof) | Professional / royalty | 30,000 | 10% | 20% |
| 194J (Tech) | Technical / call centre | 30,000 | 2% | 20% |
| 194K | Mutual fund income | 5,000 | 10% | 20% |
| 194O | E-commerce operator | 5,00,000 | 1% | 5% |
* ₹50,000 threshold for senior citizens (bank interest) | ** 1% for Individual/HUF, 2% for others (194C)
Tax Deducted at Source (TDS) is a mechanism where the payer deducts tax at the time of making certain payments — such as salary, interest, rent, commission, or professional fees — and deposits it directly with the government on behalf of the recipient.
Step 1: Identify the nature of payment and applicable TDS section.
Step 2: Check if the payment exceeds the threshold limit for that section.
Step 3: Apply the TDS rate: TDS = Payment Amount × Rate
Step 4: If no PAN, apply 20% or the applicable rate — whichever is higher.
TDS = ₹1,20,000 × 10% = ₹12,000
Net payment received = ₹1,08,000
What is TDS?
TDS (Tax Deducted at Source) is a system introduced by the Government of India where tax is deducted at the time of making certain payments such as salary, rent, commission, interest, or professional fees.
Instead of paying the tax at the end of the financial year, a small percentage of tax is deducted by the payer and deposited directly with the government on behalf of the recipient.
The main objective of TDS is to ensure regular tax collection and reduce tax evasion.
A TDS calculator helps individuals and businesses quickly calculate the amount of tax that will be deducted from a payment.
How TDS Works
Under the TDS system, the person making the payment (called the deductor) deducts tax before making the payment to the receiver (called the deductee).
For example:
Employers deduct TDS from employee salaries.
Banks deduct TDS on interest earned from fixed deposits.
Companies deduct TDS when paying contractors or professionals.
The deducted amount is deposited with the Income Tax Department of India and reflected in the taxpayer’s tax records.
TDS Calculation Formula
TDS is calculated using a simple formula:
TDS=Amount×TDS Rate100TDS = \frac{Amount \times TDS\ Rate}{100}
Where:
Amount = Total payment amount
TDS Rate = Percentage of tax deducted
The final amount received by the payee is:
Final Amount=Payment Amount−TDSFinal\ Amount = Payment\ Amount – TDS
A TDS calculator automatically calculates these values instantly.
Example TDS Calculation
Suppose:
Payment Amount = ₹50,000
TDS Rate = 10%
TDS Amount:
50,000×10%=₹5,00050,000 \times 10\% = ₹5,000
Amount received after deduction:
₹50,000−₹5,000=₹45,000₹50,000 – ₹5,000 = ₹45,000
Using a TDS calculator allows you to calculate this quickly without manual calculations.
Common TDS Rates in India
Different types of payments have different TDS rates according to the Income Tax Act.
| Payment Type | TDS Rate |
|---|---|
| Salary | Based on income tax slab |
| Bank interest | 10% |
| Professional fees | 10% |
| Commission | 5% |
| Rent (above threshold) | 10% |
Actual rates may change based on government regulations.
Benefits of Using a TDS Calculator
1. Quick Tax Calculation
Instantly calculate the TDS amount for any payment.
2. Accuracy
Reduces mistakes when calculating tax deductions.
3. Helpful for Businesses
Useful for employers, accountants, and freelancers.
4. Saves Time
No need to perform manual calculations.
Frequently Asked Questions (FAQs)
Who deducts TDS?
The person or organization making the payment deducts TDS before paying the recipient.
Is TDS refundable?
Yes. If excess TDS is deducted, you can claim a refund while filing your income tax return.
Is TDS applicable to all payments?
No. TDS is applicable only to specific payments defined under the Income Tax Act.
Conclusion
A TDS calculator is a useful financial tool that helps individuals and businesses estimate the tax deducted from payments such as salary, rent, or professional fees. By entering the payment amount and TDS rate, users can instantly calculate the tax deducted and the final amount received.
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