TDS Calculator
Calculate TDS deduction based on section (194A, 194C, 194J, 194H, etc). Shows TDS amount and net payment.
What is TDS Calculator?
A TDS (Tax Deducted at Source) calculator computes the tax amount that must be deducted before making payments for various income types in India. Different sections of the Income Tax Act prescribe different TDS rates for different payment types — Section 194A for interest, 194C for contractor payments, 194J for professional fees, 194H for commission, etc. The payer (not the recipient) is responsible for deducting and depositing TDS. This tool helps both payers determine how much to deduct and recipients estimate their net payment after TDS.
How It Works
Select the TDS section applicable to your payment type, enter the gross payment amount, and specify whether the recipient has a PAN (without PAN, TDS is deducted at 20% flat). The tool applies the correct rate for the selected section and calculates: TDS amount = gross payment × applicable rate. It shows the net amount payable to the recipient after TDS deduction. The tool also indicates threshold limits below which TDS is not applicable for each section, and handles surcharge and cess calculations for higher amounts.
Common Use Cases
- •Calculating TDS to deduct on contractor payments (Section 194C: 1-2%)
- •Computing TDS on professional fees and technical services (Section 194J: 10%)
- •Determining TDS on rent payments exceeding ₹2.4 lakh annually (Section 194-IB: 5%)
- •Calculating TDS on interest income from FDs exceeding threshold (Section 194A: 10%)
- •Estimating net payment amount after TDS for freelance and consulting income
- •Verifying TDS calculations on Form 26AS or AIS before filing income tax returns
Frequently Asked Questions
What is TDS?▼
Tax Deducted at Source (TDS) is a system where the payer deducts tax before making payment and deposits it with the government.
What happens if the payee has no PAN?▼
TDS is deducted at a higher rate — generally 20%, or the specified rate if that is higher. Section 206AA overrides the normal rate, so collecting a valid PAN before payment is important for both parties.
What are the common TDS sections and thresholds?▼
194A covers interest other than on securities, 194C contractor payments, 194J professional and technical fees, 194H commission and brokerage, and 194I rent. Each has its own rate and annual threshold below which no deduction is required. Rates and thresholds are revised in most budgets.
Is TDS the same as my final tax liability?▼
No. TDS is tax collected in advance against your eventual liability. If more was deducted than you owe, you claim a refund when filing your return; if less, you pay the balance. It is a collection mechanism, not a separate tax.
How do I claim credit for tax already deducted?▼
Check Form 26AS and the Annual Information Statement to confirm the deductor has actually deposited it against your PAN, then claim the credit in your return. If a deduction is missing from 26AS, chase the deductor — you cannot claim credit for tax that was never deposited.
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