TDS Calculator

What is TDS Calculator?

The TDS (Tax Deducted at Source) Calculator computes the TDS amount deducted on various income types like salary, fixed deposit interest, rent, professional fees, and contractor payments based on the applicable section and rate.

How to Calculate TDS

1. Select the type of payment (salary, FD interest, rent, professional fees, etc.)
2. Enter the payment/income amount
3. The applicable TDS rate auto-fills based on the section
4. Click Calculate to see TDS amount, net amount receivable, and applicable section

How TDS Calculator is Calculated

TDS = Payment Amount × TDS Rate / 100. Rates vary by section: 194A (FD interest) = 10%, 194I (rent) = 10%, 194J (professional fees) = 10%, 194C (contractor) = 1–2%.

Worked Example

FD interest of ₹60,000 in a year: TDS = ₹60,000 × 10% = ₹6,000. If no PAN submitted, TDS = ₹60,000 × 20% = ₹12,000. TDS is deducted only if interest exceeds ₹40,000 (₹50,000 for senior citizens).

Common Use Cases

• Employer TDS on salary estimation
• FD interest TDS planning
• Rental income TDS calculation
• Freelancer/contractor TDS compliance

Common Mistakes to Avoid

• Not submitting Form 15G/15H when your total income is below the taxable limit — this avoids unnecessary TDS deduction on FD interest.
• Forgetting that TDS is not the final tax — TDS is an advance tax. You may owe more or claim a refund based on your total income and slab.
• Not checking TDS credit in Form 26AS/AIS — always verify that the TDS deducted matches what is reflected in your tax credit statement.
• Deducting TDS at 20% because the payee did not provide PAN — under Section 206AA, a higher rate applies when PAN is missing.

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Why This Calculator Matters

Tax Deducted at Source applies to salaries, bank interest, rent, professional fees, and many other payments. Understanding TDS rates prevents both over-deduction (blocking your cash flow) and under-deduction (leading to penalties). For FY 2025-26, the threshold for TDS on bank FD interest is ₹40,000 (₹50,000 for seniors).

What You Get

• TDS calculation for all major sections
• Section-wise rate lookup
• Form 15G/15H eligibility check
• TDS refund estimator
• Quarterly TDS certificate verification
• Advance tax vs TDS comparison

How It's Calculated

TDS = Payment × Applicable Rate. Rates vary: Salary (as per slab), FD Interest (10%), Rent (5-10%), Professional Fees (10%), Commission (5%).

Real-World Example

FD interest ₹60,000/year (non-senior). TDS threshold = ₹40,000. Taxable interest = ₹60,000. TDS at 10% = ₹6,000. If no PAN: TDS at 20% = ₹12,000.

At a Glance

Major TDS sections and rates (FY 2025-26)

Practical Advice

• 💡 Submit Form 15G (below 60) or 15H (seniors) if income is below taxable limit to avoid TDS.
• 💡 TDS on rent (194-IB): tenant must deduct 5% if annual rent exceeds ₹50,000/month.
• 💡 TDS on professional fees (194J): 10% for professionals, 2% for technical services.
• 💡 Check Form 26AS on income tax portal to verify all TDS credits before filing ITR.
• 💡 TDS credit can be claimed even if employer/deductor deposited it late.

Who Should Use This?

Employers deducting TDS, employees verifying deductions, freelancers managing TDS certificates, and CAs filing TDS returns.