TDS Calculator - Tax Deducted at Source

About TDS

Tax Deducted at Source (TDS) is a means of collecting income tax in India, under the Indian Income Tax Act of 1961. Any payment covered under these provisions shall be paid after deducting prescribed percentage.

  • Automatic Deduction: Tax is deducted automatically at source
  • Regular Income: Government gets regular revenue
  • Tax Compliance: Reduces tax evasion
  • Credit System: Deductee gets tax credit

TDS rates vary based on nature of payment and recipient type.

Common TDS Rates
Payment Type Rate
Salary As per tax slab
Interest 10%
Rent 10%
Commission 5%
Professional Fees 10%
Contract 1-2%
Dividend 10%

* Rates may vary based on PAN availability and other factors

Frequently Asked Questions

Tax Deducted at Source (TDS) is a system where tax is deducted from payments at the source itself. When you make certain payments like salary, rent, or interest, you must deduct a specific percentage as tax and deposit it with the government. The recipient gets the net amount after TDS deduction.

TDS is applicable when payment exceeds specified threshold limits. For example, TDS on interest is applicable when interest payment exceeds ₹40,000 in a financial year. For rent, the threshold is ₹2,40,000 per annum. Different payment types have different threshold limits.

If PAN is not provided, TDS is deducted at a higher rate (maximum 20%) as per Section 206AA of Income Tax Act. It's mandatory to quote PAN to avoid higher TDS deduction. Always ensure your PAN is updated with the deductor.

You can claim TDS credit by filing your income tax return. The TDS amount will be reflected in your Form 26AS and Form 16/16A. Ensure that the deductor has deposited the TDS with the government and filed the TDS return. The credit will automatically reflect in your tax computation.

For salary payments, TDS must be deposited by 7th of the following month. For other payments, the due date is generally 7th of the next month. For March month, the due date is extended to 30th April. Quarterly TDS returns must be filed within specified due dates.

Simplify Your TDS Calculations

Understanding Tax Deducted at Source is crucial for both individuals and businesses. Our comprehensive TDS calculator helps you determine the exact tax to be deducted from various payments, ensuring compliance with Indian tax laws while optimizing your tax planning.

Accurate Calculations

Precise TDS calculations based on current tax rates and thresholds

Tax Compliance

Ensure proper tax compliance with updated TDS rates and rules

Detailed Breakdown

Get comprehensive breakdown of TDS components and tax credits

Whether you're an employer calculating TDS on employee salaries, a landlord receiving rent, or an investor earning interest income, our TDS calculator provides instant results with detailed compliance information. Stay updated with the latest TDS rates, threshold limits, and filing requirements to avoid penalties and ensure smooth tax operations.