TDS Calculator

TDS Calculator — Determine the Exact Tax Deducted at Source for Any Payment Category

TDS (Tax Deducted at Source) is the Indian government's mechanism for collecting tax at the very moment income is paid — not at the end of the financial year when you file your return. Every time a bank pays you interest, a client pays your consulting fee, a tenant pays rent, or an employer disburses salary, the payer is legally required to deduct a percentage of that payment and deposit it with the government on your behalf. The challenge is that TDS rates, thresholds, and sections differ for virtually every payment type — and getting them wrong triggers interest penalties, disallowance of expenses, and compliance notices. This TDS Calculator eliminates the guesswork: select the payment category, confirm PAN availability, enter the amount, and you'll see the exact TDS applicable under the relevant section of the Income Tax Act.

Whether you're a business owner deducting TDS on contractor payments, a landlord receiving rent, or a salaried employee trying to understand why your Form 16 shows a certain TDS amount — this tool gives you the numbers to verify, plan, and stay compliant.

The Most Common TDS Sections — A Practical Reference

TDS rates and thresholds are specified section-wise under the Income Tax Act. Here are the sections you're most likely to encounter in everyday financial transactions:

• Section 192 (Salary): Your employer deducts TDS at your applicable slab rate based on estimated annual income. No fixed percentage — it depends on your total income, declared investments, and chosen tax regime. If your annual tax liability after standard deduction and exemptions is zero, no TDS is deducted. This is the most common form of TDS for salaried individuals.
• Section 194A (Interest): Banks, post offices, and NBFCs deduct 10% TDS on interest payments exceeding ₹40,000 per year from a single institution (₹50,000 for senior citizens). If you submit Form 15G/15H declaring your income is below the taxable limit, no TDS is deducted. This applies to savings account interest, FD interest, RD interest, and recurring deposit interest.
• Section 194C (Contractor payments): 1% TDS for individual/HUF contractors, 2% for company contractors — on single payments exceeding ₹30,000 or aggregate payments exceeding ₹1,00,000 in a financial year. This is one of the most commonly missed TDS obligations for small businesses.
• Section 194H (Commission/brokerage): 5% TDS on commission or brokerage payments exceeding ₹15,000 per year. Applies to insurance agents, distribution agents, referral fees, and any commission-based compensation.
• Section 194I (Rent): 10% TDS on rent for land, building, or furniture exceeding ₹2,40,000 per year. 2% TDS on rent for plant and machinery exceeding ₹2,40,000 per year. Applies when the tenant is a business entity or professional.
• Section 194J (Professional/technical fees): 10% TDS for professional services (consulting, legal, accounting, medical) and 2% for technical services and call centre operations — on payments exceeding ₹30,000 per year. Freelancers, independent consultants, and CA firms routinely encounter this section.
• Section 194IA (Property purchase): 1% TDS on the purchase consideration of immovable property exceeding ₹50 lakh. The buyer deducts this from the payment to the seller and deposits it using Form 26QB within 30 days. No TAN required — PAN of buyer and seller is sufficient.
• Section 194IB (Rent by individual/HUF): 5% TDS on monthly rent exceeding ₹50,000, applicable when the tenant is an individual or HUF not subject to tax audit. Deducted once at the end of the financial year or on vacating the property.

The PAN Penalty — How Non-Furnishing Dramatically Increases Your TDS

PAN isn't just an identification number — it directly determines how much tax is deducted from your payments. Two critical sections govern this:

Section 206AA: If you don't provide a valid PAN to the payer, TDS must be deducted at the higher of: (a) the rate specified in the relevant TDS section, (b) the rate in force (Finance Act rate), or (c) 20%. A contractor payment that normally attracts 2% TDS becomes 20% without PAN — that's a 10× increase. On a ₹5,00,000 payment, the difference is ₹10,000 vs ₹1,00,000. Always provide your PAN promptly to any entity making payments to you.

Section 206AB (higher rate for non-filers): If you haven't filed ITR for the two preceding financial years and TDS in each of those years exceeded ₹50,000, the payer must deduct TDS at twice the specified rate or 5% (whichever is higher). This applies even if PAN is available. The intent is to enforce ITR filing compliance through the TDS mechanism. Verify your compliance status on the Income Tax portal before receiving significant payments.

TDS Deposit Deadlines and Consequences of Missing Them

Deducting TDS is only half the obligation — depositing it with the government on time is equally critical, and the penalties for delay are steep:

• Deposit deadline: TDS deducted in any month from April to February must be deposited by the 7th of the following month. TDS for March must be deposited by 30th April. Government deductors must deposit on the same day of deduction.
• Interest for late deduction (Section 201(1A)): 1% per month from the date the tax was deductible to the date it was actually deducted. This applies when you forget to deduct TDS in the first place.
• Interest for late deposit: 1.5% per month from the date of deduction to the date of actual deposit. This is the most commonly penalized provision — even a few days' delay triggers interest.
• Disallowance of expense (Section 40(a)(ia)): 30% of the expense for which TDS was not deducted or not deposited is disallowed — meaning you can't claim it as a deduction while computing your business income. On a ₹5,00,000 professional fee where TDS was not deducted, ₹1,50,000 gets added back to your taxable income.
• Late filing fee (Section 234E): ₹200 per day for each day of delay in filing the quarterly TDS return, subject to a maximum of the TDS amount.

TDS Certificates and Filing — Form 16, 16A, and Quarterly Returns

After deducting and depositing TDS, the deductor must provide you with a certificate as proof — and you need this certificate to claim TDS credit in your ITR:

• Form 16: Annual certificate issued by your employer showing total salary paid and TDS deducted. Must be issued by 15th June of the following financial year. Contains a detailed breakdown of salary components, exemptions, and TDS computation.
• Form 16A: Quarterly certificate for non-salary TDS (contractor payments, rent, interest, professional fees, etc.). Must be issued within 15 days of filing the quarterly TDS return for that quarter.
• Form 26AS / AIS: Your consolidated tax credit statement on the Income Tax portal. Every TDS deposited against your PAN appears here. Always cross-verify the TDS in Form 26AS with the amounts claimed in your ITR — mismatches trigger automated notices.

Quarterly TDS return filing deadlines: Q1 (April-June) by 31st July, Q2 (July-September) by 31st October, Q3 (October-December) by 31st January, Q4 (January-March) by 31st May. Forms: 24Q for salary TDS, 26Q for non-salary domestic TDS, 27Q for NRI payments, 27EQ for TCS.

Lower Deduction Certificates — When You Legally Pay Less TDS

If your total income for the year is expected to be below the taxable limit, or if you have losses that offset the income being subjected to TDS, you can apply to the Assessing Officer under Section 197 for a certificate authorizing the deductor to deduct TDS at a lower rate or not at all. Common scenarios where this applies:

• Exporters with significant refund claims where taxable income is nil or minimal
• Businesses with carry-forward losses that offset the year's income
• Individuals whose total income falls below ₹3-5 lakh after deductions
• Freelancers with high business expenses that bring taxable income below the threshold

The certificate is valid only for the financial year specified and must be submitted to the deductor. Apply through the Income Tax portal — processing typically takes 2-4 weeks. Without this certificate, the deductor has no legal option but to deduct TDS at the standard rate, and you'll need to claim a refund while filing your ITR.

Frequently Asked Questions About TDS