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TDS Calculator

Calculate TDS on salary, rent, interest, professional fees & more.

TDS Calculator

If unchecked, TDS at 20% as per Section 206AA
If unchecked, no TDS is applicable

TDS Calculation Results

Payment Amount
TDS Section
TDS Rate
TDS Amount
Net Payment (After TDS)

TDS Rate Reference

SectionDescriptionRateThreshold
192SalaryAs per slab₹2,50,000
194AInterest (Bank)10%₹40,000 / ₹50,000
194CContractor (Ind/HUF)1%₹30,000 / ₹1,00,000
194CContractor (Others)2%₹30,000 / ₹1,00,000
194HCommission5%₹15,000
194I(a)Rent — Building10%₹2,40,000
194I(b)Rent — Machinery2%₹2,40,000
194JProfessional10%₹30,000
194JTechnical2%₹30,000
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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.

TDS Return Filing Due Dates

ReturnPeriodDue DateForm
Quarterly TDS ReturnApr-JunJuly 31Form 24Q/26Q
Quarterly TDS ReturnJul-SepOctober 31Form 24Q/26Q
Quarterly TDS ReturnOct-DecJanuary 31Form 24Q/26Q
Quarterly TDS ReturnJan-MarMay 31Form 24Q/26Q
TDS Certificate (Salary)AnnualJune 15Form 16
TDS Certificate (Other)Quarterly15 days from due dateForm 16A

How to Claim TDS Refund

If your total TDS deducted during the year exceeds your actual tax liability, you can claim a refund while filing your Income Tax Return (ITR). Here's how:

  • Check Form 26AS — Verify all TDS credits against your PAN on the Income Tax portal
  • File ITR — Report all income and TDS in your ITR before the due date (July 31)
  • Claim refund — The ITR form automatically calculates refund if TDS > tax liability
  • Processing time — Refunds are typically processed within 45-90 days of ITR filing
  • Track status — Check refund status on the Income Tax e-filing portal

Penalty for Late TDS Deposit

If TDS is not deposited by the due date (7th of the following month), the deductor must pay:

  • Interest at 1.5% per month on the TDS amount from the date of deduction to the date of deposit
  • Late filing fee of ₹200 per day under Section 234E (maximum ₹50,000)
  • Penalty equal to the TDS amount under Section 221 in severe cases

Frequently Asked Questions

What is TDS and how does it work in India?

TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax before making payments like salary, rent, interest, or professional fees. The deducted amount is deposited with the government on behalf of the payee, who receives credit while filing their Income Tax Return.

What is the penalty if PAN is not provided for TDS?

If the payee does not provide PAN, TDS is deducted at 20% or the applicable rate, whichever is higher, under Section 206AA of the Income Tax Act. This can significantly increase the TDS amount deducted from your payment.

What are the TDS threshold limits for different sections?

TDS thresholds vary by section: bank interest (194A) ₹40,000 (₹50,000 for seniors), rent (194I) ₹2,40,000, professional fees (194J) ₹30,000, contractor payments (194C) ₹30,000 single or ₹1,00,000 aggregate, and commission (194H) ₹15,000.

How do I claim a TDS refund?

If TDS deducted exceeds your total tax liability, file your Income Tax Return (ITR) before July 31 to claim the refund. Check Form 26AS to verify all TDS credits against your PAN. The refund is automatically calculated by the ITR system and typically processed within 45-90 days.

What is the due date for depositing TDS?

TDS must be deposited by the 7th of the month following the deduction. For example, TDS deducted in April must be deposited by May 7. Late deposit attracts interest at 1.5% per month from the date of deduction to the date of deposit under Section 201(1A).

When is Form 16 issued to employees?

Form 16 (TDS certificate for salary) must be issued by the employer by June 15 of the assessment year following the financial year. Form 16A (for non-salary TDS) must be issued within 15 days from the due date of filing the quarterly TDS return.

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Disclaimer: This tool is for educational and estimation purposes only. TDS rates may vary based on specific circumstances and notifications. Please consult a qualified CA for official filings.