Home/Tools/TDS Calculator

TDS Calculator

Calculate TDS deducted at source for salary, rent, professional fees, interest, and more — based on latest income tax provisions.

TDS Calculator

If PAN is not provided, TDS is deducted at double the applicable rate (minimum 20%).

Applicable TDS Rate
10%
TDS Amount
₹0
Gross Amount
₹0
TDS Deducted
₹0
Net Amount After TDS
₹0

What is TDS (Tax Deducted at Source)?

Tax Deducted at Source (TDS) is a mechanism under the Income Tax Act, 1961, where tax is deducted at the point of payment itself — before the money reaches the recipient. The payer (called the deductor) deducts a specified percentage of the payment as tax and deposits it directly with the government. The recipient (deductee) receives the net amount after TDS, and the TDS paid is credited against their final income tax liability for the year.

TDS ensures a steady flow of tax revenue throughout the year and reduces tax evasion by collecting tax at the source of income generation. It covers a wide range of payments including salary, interest, rent, professional fees, commission, dividends, lottery winnings, and property transactions.

Key TDS Sections and Rates

  • Section 192 — Salary: TDS on salary is deducted by the employer based on the employee's estimated annual income and applicable income tax slab. No fixed rate — it depends on income level and chosen tax regime.
  • Section 193 — Interest on Securities: 10% on interest paid on debentures, government securities, etc. Threshold: ₹10,000 per year.
  • Section 194 — Dividends: 10% on dividends paid by domestic companies exceeding ₹5,000 per year.
  • Section 194A — Interest (other than securities): 10% on bank FD interest, recurring deposit interest, etc. Threshold: ₹40,000 (₹50,000 for senior citizens).
  • Section 194B — Lottery/Puzzle/Card Game: 30% on winnings from lotteries, crossword puzzles, card games exceeding ₹10,000.
  • Section 194C — Contractor Payments: 1% for individual/HUF contractors, 2% for others. Threshold: ₹30,000 per contract or ₹1,00,000 in a year.
  • Section 194D — Insurance Commission: 5% on commission to insurance agents exceeding ₹15,000 per year.
  • Section 194I — Rent: 10% on rent of land, building, furniture exceeding ₹2,40,000 per year (₹50,000 per month).
  • Section 194J — Professional/Technical Fees: 10% on fees for professional or technical services exceeding ₹30,000 per year (2% for technical services from FY 2020-21).
  • Section 194IA — Property Purchase: 1% on purchase consideration exceeding ₹50 lakh for immovable property (other than agricultural land).

When is TDS Deducted?

TDS is required to be deducted at the time of payment or at the time of credit to the account of the payee, whichever is earlier. For example, if a company accrues professional fee expense and credits it to a payable account, TDS must be deducted at that point even if actual payment is made later. The deducted TDS must be deposited with the government by the 7th of the following month (30th April for March deductions).

Importance of PAN for TDS

Providing your PAN (Permanent Account Number) to the payer is crucial for TDS purposes. Under Section 206AA, if you fail to furnish your PAN, the TDS rate is doubled — at twice the applicable rate or 20%, whichever is higher. This higher deduction significantly reduces the net payment received. Always furnish your PAN to avoid excess TDS deduction. Additionally, without PAN, the TDS credit may not appear in your Form 26AS, making it difficult to claim a refund.

TDS Threshold Limits

TDS is not deducted on every payment — it kicks in only when the payment exceeds specified threshold limits. Common thresholds:

  • Bank FD Interest (Sec 194A): ₹40,000 per year (₹50,000 for senior citizens)
  • Dividends (Sec 194): ₹5,000 per year
  • Rent (Sec 194I): ₹2,40,000 per year
  • Professional Fees (Sec 194J): ₹30,000 per year
  • Contractor Payments (Sec 194C): ₹30,000 per contract or ₹1,00,000 per year
  • Property Purchase (Sec 194IA): ₹50,00,000
  • Lottery winnings (Sec 194B): ₹10,000

How to Claim TDS Refund

If excess TDS has been deducted compared to your actual tax liability, you can claim a refund by filing your Income Tax Return (ITR). The TDS credit is reflected in Form 26AS and AIS (Annual Information Statement) on the Income Tax portal. When you file your ITR, the TDS already deducted is offset against your total tax liability. If TDS exceeds your liability, the excess amount is refunded by the Income Tax Department — typically within 20–45 days of ITR processing, directly to your linked bank account.

Forms Related to TDS

  • Form 15G / 15H: Declaration forms to request nil TDS deduction when your income is below the taxable limit. Form 15G is for individuals below 60 years; Form 15H is for senior citizens. Submit these to the bank or payer at the start of each financial year.
  • Form 16: TDS certificate issued by employers to employees for salary TDS. Contains a detailed breakup of income and tax deducted.
  • Form 16A: TDS certificate for non-salary payments (FD interest, professional fees, rent, etc.).
  • Form 26AS: Annual TDS statement available on the Income Tax portal showing all TDS deducted and deposited against your PAN. Always verify this before filing your ITR.

Frequently Asked Questions

TDS stands for Tax Deducted at Source. It is a method of collecting income tax at the origin of income — the payer deducts a specified percentage of tax from the payment before remitting the balance to the payee. The deducted tax is deposited with the Central Government on behalf of the recipient. When the recipient files their annual Income Tax Return, this TDS is credited against their total tax liability. If TDS exceeds their liability, a refund is issued. TDS is governed by Sections 192 to 206 of the Income Tax Act, 1961.
The responsibility to deduct TDS lies with the payer — called the "deductor." This includes employers (for salary), companies paying dividends or interest, individuals and businesses making rent payments, companies paying professional fees, and buyers of property above ₹50 lakh. The deductor must have a TAN (Tax Deduction and Collection Account Number), deduct TDS at the applicable rate, deposit it with the government by the due date, and issue TDS certificates (Form 16/16A) to the payee. Failure to deduct or deposit TDS attracts interest and penalties under the Income Tax Act.
You can legitimately avoid TDS if your total income is below the taxable limit by submitting Form 15G (for individuals below 60 years) or Form 15H (for senior citizens) to the payer at the beginning of the financial year. These are self-declarations stating that your total income does not exceed the basic exemption limit and hence no tax is due. Note that submitting a false declaration attracts penalties under Section 277. You cannot avoid TDS by simply not providing PAN — that would actually increase the rate to 20%. If you are in a higher tax bracket, TDS is a legitimate advance tax collection and you can always claim a refund if excess TDS is deducted.
To claim a TDS refund, file your Income Tax Return (ITR) on the Income Tax e-filing portal (incometax.gov.in) before the due date. The TDS already deducted appears in your Form 26AS and AIS. When you enter your income details and compute tax in the ITR, the TDS credit is automatically offset against your liability. If TDS exceeds your liability, the ITR will show a refund amount. Ensure your bank account is pre-validated on the portal for the refund to be credited directly. Refunds are typically processed within 20–45 days of ITR verification. Check the refund status using your PAN on the NSDL TIN portal or the Income Tax portal.