TDS Calculator

Calculating TDS takes less than a minute:

1. Enter the payment amount on which TDS needs to be calculated (salary, interest, rent, or professional fees).
2. Select the nature of payment to determine the applicable TDS section and rate.
3. Enter the applicable TDS rate, if not auto-filled, based on the payment type.
4. Click Calculate to instantly see the TDS amount and the net payment after deduction.

The calculator helps both payers and recipients understand exactly how much tax will be deducted before the payment is made.

TDS (Tax Deducted at Source) is a mechanism under the Income Tax Act where a certain percentage of tax is deducted by the payer at the time of making specified payments, such as salary, interest, rent, or professional fees. The deducted amount is then deposited with the government on behalf of the recipient.

TDS ensures a steady flow of tax revenue to the government and reduces tax evasion, since tax is collected at the source of income itself rather than relying solely on the taxpayer to pay it later.

TDS is calculated using a simple percentage-based formula:

TDS Amount = (Payment Amount × TDS Rate) / 100

Where:

• Payment Amount = The gross amount being paid (salary, rent, interest, etc.)
• TDS Rate = The percentage rate applicable based on the nature of payment, as prescribed under the Income Tax Act

For example, if a company pays ₹50,000 as professional fees and the applicable TDS rate is 10%, the TDS deducted would be ₹5,000, and the net amount paid to the recipient would be ₹45,000.

Different types of payments attract different TDS sections and rates:

• Section 192 — TDS on salary, based on applicable income tax slab rates
• Section 194A — TDS on interest other than securities (e.g., fixed deposits), typically 10%
• Section 194I — TDS on rent, typically 10% for land/building and 2% for plant/machinery
• Section 194J — TDS on professional or technical fees, typically 10%
• Section 194C — TDS on payments to contractors, typically 1% to 2%

Note: TDS rates and thresholds are subject to change with each Union Budget. Always verify the latest rates on the official Income Tax Department website.

Yes. If the TDS deducted is higher than your actual tax liability for the financial year, you can claim a refund by filing your Income Tax Return (ITR). The excess amount, along with applicable interest, is refunded by the Income Tax Department after processing your return.

Similarly, if your total income is below the taxable limit, you can also submit Form 15G or 15H (for senior citizens) to certain payers to avoid TDS deduction altogether, where applicable.

Our calculator helps you understand TDS deductions clearly by allowing you to:

• Get instant, accurate TDS amount calculations
• Understand the net amount you'll receive after deduction
• Compare TDS impact across different payment types and rates
• Plan your finances better, whether you're a payer or a recipient