TDS Calculator
Calculate TDS on salary, rent, interest, professional fees & more.
TDS Calculator
TDS Calculation Results
TDS Rate Reference
| Section | Description | Rate | Threshold |
|---|---|---|---|
| 192 | Salary | As per slab | ₹2,50,000 |
| 194A | Interest (Bank) | 10% | ₹40,000 / ₹50,000 |
| 194C | Contractor (Ind/HUF) | 1% | ₹30,000 / ₹1,00,000 |
| 194C | Contractor (Others) | 2% | ₹30,000 / ₹1,00,000 |
| 194H | Commission | 5% | ₹15,000 |
| 194I(a) | Rent — Building | 10% | ₹2,40,000 |
| 194I(b) | Rent — Machinery | 2% | ₹2,40,000 |
| 194J | Professional | 10% | ₹30,000 |
| 194J | Technical | 2% | ₹30,000 |
What is TDS?
Tax Deducted at Source (TDS) is a method of collecting income tax at the source of income. Under this system, the payer (deductor) is required to deduct tax at the prescribed rates before making specified payments to the payee (deductee). The deducted amount is then deposited with the government on behalf of the payee. TDS applies to various types of payments including salary, interest, rent, commission, professional fees, and contractor payments.
The TDS mechanism ensures a steady revenue flow to the government and helps prevent tax evasion. The payee receives credit for the TDS deducted, which they can claim while filing their income tax return. The deductor must issue a TDS certificate (Form 16 for salary, Form 16A for other payments) to the deductee, which serves as proof of tax deducted and deposited.
TDS returns must be filed quarterly by the deductor, and the TDS amount must be deposited by the 7th of the following month. Failure to deduct or deposit TDS attracts interest and penalties under Sections 201 and 271C of the Income Tax Act.
When to Deduct TDS
- Salary (192): At the time of payment, based on the employee's estimated income and tax slab
- Interest (194A): When interest payment exceeds ₹40,000 (₹50,000 for seniors) in a financial year
- Rent (194I): When annual rent exceeds ₹2,40,000
- Professional Fees (194J): When payment exceeds ₹30,000 in a financial year
- Contractor (194C): When single payment exceeds ₹30,000 or aggregate exceeds ₹1,00,000
TDS vs Income Tax: What's the Difference?
TDS is a method of tax collection, while income tax is the tax itself. TDS is deducted throughout the year on specific payments, whereas income tax is the total tax liability calculated on your annual income. If TDS deducted is more than your total tax liability, you get a refund. If it's less, you need to pay the balance as self-assessment tax.