UtilitiesHub

TDS Calculator

Use this TDS calculator to estimate the Tax Deducted at Source based on payment type and recipient details.

0
Explore More

Open the right finance calculator quickly, from SIP and EMI to tax, loan, and investment tools.

Finance Calculators

TDS Calculator — Find the Exact Tax Deductible at Source for Any Payment Type

Tax Deducted at Source (TDS) is one of the most common points of confusion in Indian tax compliance — businesses routinely face scrutiny for incorrect deduction rates, missed threshold limits, and PAN non-availability penalties. This TDS Calculator eliminates the guesswork. Select the recipient type, confirm PAN availability, choose the nature of payment, enter the amount — and instantly see the exact TDS amount applicable under the relevant section of the Income Tax Act.

TDS applies across a wide range of payments: salary, bank interest, rent, contractor payments, professional fees, property purchases, commission, and more. Each has its own section, rate, and annual threshold limit. Getting any of these wrong — even by deducting slightly less than required — triggers interest under Section 201(1A) at 1.5% per month from the date of deduction to the date of deposit, and potential disallowance of the expense.

Key TDS Sections, Rates, and Threshold Limits (FY 2025-26)

TDS rates and thresholds vary by payment type. The most commonly encountered sections:

  • Section 192 — Salary: TDS at applicable income tax slab rates on estimated annual salary. No fixed threshold — TDS applies if tax is payable after standard deduction and exemptions. Employer deducts monthly.
  • Section 194A — Interest (Banks/NBFCs): 10% TDS on interest above ₹40,000/year (₹50,000 for senior citizens) from a single bank. For other entities, threshold is ₹5,000/year.
  • Section 194C — Contractor Payments: 1% (individual/HUF) or 2% (others) on payments above ₹30,000 per contract or ₹1,00,000 in aggregate in a financial year.
  • Section 194H — Commission/Brokerage: 5% on amounts above ₹15,000/year.
  • Section 194I — Rent: 10% on rent for land/building/furniture above ₹2,40,000/year; 2% on plant/machinery rent above ₹2,40,000/year.
  • Section 194J — Professional/Technical Fees: 10% (professional services) or 2% (technical services, call centres) on amounts above ₹30,000/year.
  • Section 194IA — Property Purchase: 1% on purchase consideration above ₹50 lakh. Buyer deducts from payment to seller.
  • Section 194IB — Rent by Individual/HUF: 5% on monthly rent above ₹50,000/month. Deducted once at the end of the year or on vacating.

The PAN Penalty — Section 206AA and 206AB

Section 206AA: If the deductee (recipient) does not furnish a valid PAN, TDS must be deducted at the higher of: the rate specified in the relevant section, the rate in force (as per Finance Act), or 20%. This means a contractor payment that normally attracts 1–2% TDS becomes 20% without PAN — a dramatic difference that affects both the deductor (liability risk) and deductee (cash flow).

Section 206AB (effective FY 2021-22): If the deductee has not filed ITR for the two preceding financial years and TDS in each of those years exceeded ₹50,000, TDS must be deducted at twice the specified rate or 5%, whichever is higher. This applies even if PAN is available. Deductors must verify compliance status on the Income Tax portal before making significant payments.

TDS Due Dates and Consequences of Default

Deposit due dates: TDS deducted in April–February must be deposited by the 7th of the following month. TDS for March must be deposited by 30 April. Government deductors must deposit on the same day of deduction.

Consequences of non-compliance:

  • Interest for late deduction (Section 201(1A)): 1% per month from the date tax was deductible to the date of actual deduction.
  • Interest for late deposit: 1.5% per month from the date of deduction to the date of deposit.
  • Penalty under Section 271C: Equal to the TDS amount for failure to deduct.
  • Disallowance of expense (Section 40(a)(ia)): 30% of the expense for which TDS was not deducted is disallowed — this directly increases taxable income.
  • Late filing fee (Section 234E): ₹200/day for each day of delay in filing the quarterly TDS return, subject to a maximum of the TDS amount.

TDS Certificates and Claiming TDS Credit

The deductor must issue TDS certificates to the deductee as proof of tax deducted: Form 16 (salary, annually by 15 June), Form 16A (non-salary, quarterly within 15 days of due date of quarterly TDS return). The deductee claims TDS credit while filing their ITR — the TDS appears in Form 26AS (tax credit statement) and the AIS (Annual Information Statement). Any mismatch between the TDS shown in Form 26AS and the amount claimed in the ITR leads to notices from the tax department.

If excess TDS is deducted (e.g., flat 20% due to no PAN on a payment that attracts 10%), the deductee can claim a refund of the excess while filing their ITR. The refund is processed with applicable interest under Section 244A if it exceeds 10% of the tax due.

Frequently Asked Questions About TDS

Yes. Form 15G (for non-senior citizens below 60) and Form 15H (for senior citizens 60+) are self-declarations that total income will be below the taxable limit — submitted to banks or payers to prevent TDS deduction under Section 194A on interest. The deductee must genuinely qualify: their estimated total income for the year must not exceed the basic exemption limit. Filing a false 15G/15H declaration is a criminal offence under Section 277. These forms must be submitted at the start of each financial year.
Under Section 194IA, the buyer of immovable property (other than agricultural land) must deduct 1% TDS on the total consideration if it exceeds ₹50 lakh. This applies even if the payment is made in instalments — TDS must be deducted on each instalment. The buyer must deposit TDS using Form 26QB on the TIN portal within 30 days of the end of the month of deduction, and provide Form 16B to the seller within 15 days of the due date for furnishing Form 26QB. No TAN is required for property TDS — PAN of both buyer and seller is sufficient.
TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric number required for entities that deduct or collect tax at source. Any person or business required to deduct TDS (employers, companies paying professional fees, rent, etc.) must apply for TAN. It must be quoted on all TDS challans, returns, and certificates. The exception is individuals buying property under Section 194IA — they can deduct and deposit TDS using their PAN without a TAN.
TDS (Tax Deducted at Source) is deducted by the payer on specified payments made to the recipient. TCS (Tax Collected at Source) is collected by the seller from the buyer on specified goods/transactions — such as sale of scrap, timber, tendu leaves, and overseas remittances under LRS (Liberalised Remittance Scheme). From FY 2023-24, TCS at 20% applies on foreign remittances under LRS above ₹7 lakh (education/medical at lower rates). Both TDS and TCS are creditable against the tax liability of the deductee/buyer in their ITR.
Yes, under Section 195, TDS must be deducted on payments made to Non-Resident Indians (NRIs) at the rates applicable under the Income Tax Act or the Double Taxation Avoidance Agreement (DTAA) between India and the NRI's country of residence, whichever is more beneficial. The NRI must submit a Tax Residency Certificate (TRC) and Form 10F to claim DTAA benefits. The TDS rate on NRI payments is often significantly higher (30%+ for capital gains) than for residents.
If a person's total income is expected to be lower than the amount from which TDS is deducted at standard rates, they can apply to the Assessing Officer (AO) under Section 197 for a certificate authorising the deductor to deduct TDS at a lower rate or nil rate. Common applicants: exporters with refund claims, businesses with carry-forward losses, or individuals with business income subject to TDS. The certificate is valid for the financial year mentioned and must be submitted to the deductor. Applications are filed through the Income Tax portal.
TDS returns must be filed quarterly: Q1 (April–June) by 31 July; Q2 (July–September) by 31 October; Q3 (October–December) by 31 January; Q4 (January–March) by 31 May. Forms used: 24Q (salary TDS), 26Q (non-salary domestic TDS), 27Q (TDS on NRI payments), 27EQ (TCS). Late filing attracts ₹200/day under Section 234E. Incorrect returns can be corrected by filing a revised return through the TRACES portal.