Professional TDS calculation tool with automatic threshold validation for all sections including 194A, 194C, 194I, 194J, 194Q and more
Tax Deducted at Source is a mechanism to collect income tax at the source of income generation as per the Income Tax Act, 1961.
The payer (employer, bank, tenant, buyer) deducts tax before making payment to the recipient as per applicable sections.
TDS is deducted at the time of payment or credit to the account, whichever is earlier, subject to threshold limits.
Regular revenue for government, reduces tax evasion, ensures timely tax collection, and maintains proper records.
The TDS Calculator is an essential tool for taxpayers, employers, and businesses to calculate Tax Deducted at Source accurately. Our online TDS calculator helps you determine the exact amount of tax to be deducted under various sections of the Income Tax Act.
TDS or Tax Deducted at Source is a system introduced by the Income Tax Department under the Indian Income Tax Act, 1961. It is a means of collecting tax at the very source of income. The concept of TDS was introduced to collect tax in advance, ensuring regular flow of revenue to the government and reducing tax evasion.
When a person (deductor) makes a payment to another person (deductee), they are required to deduct tax at source if the payment exceeds a certain threshold limit. The deducted amount is then deposited with the government. The deductee receives the payment after deduction of TDS and can claim credit for the TDS amount while filing their income tax return.
TDS rates vary depending on the section under which tax is being deducted. Generally, if the recipient doesn't provide their PAN (Permanent Account Number), TDS is deducted at a higher rate of 20%. Our calculator automatically applies the correct rate based on your selection.
TDS is applicable only when the payment exceeds certain threshold limits. For example:
After deducting TDS, the deductor must deposit it with the government within specified time limits and file quarterly TDS returns. Late payment or non-filing can result in penalties and interest charges.
The calculator will show you the gross amount, applicable TDS rate, TDS amount to be deducted, and the net amount payable. If the amount is below the threshold limit, the calculator will inform you that TDS is not applicable.
If TDS is not deducted when required, the deductor may face disallowance of expenditure under Section 40(a)(ia), interest under Section 201(1A) at 1% per month, and penalty under Section 271C.
Yes, you can claim credit for TDS deducted on your income while filing your income tax return. The TDS amount will be adjusted against your total tax liability.
Form 16 is a TDS certificate issued by employers for salary income under Section 192. Form 16A is issued for TDS deducted on payments other than salary (like rent, interest, professional fees, etc.).
The deductor is liable to pay interest at 1.5% per month on the TDS amount from the date it was deducted till the date it is deposited. Additionally, penalties may be imposed.
You can check your TDS credit by logging into your account on the Income Tax e-filing portal and viewing Form 26AS, which shows all TDS deposited against your PAN.
Yes, TDS is applicable on payments made to non-residents under various sections like 195, 194E, 194LC, etc. The rates and applicability may differ based on tax treaties.
Yes, if the TDS deducted is more than your actual tax liability, you can claim a refund while filing your income tax return. The excess amount will be refunded after processing your return.
If the recipient doesn't provide their PAN, TDS is generally deducted at the rate of 20% or at the rate prescribed for the section, whichever is higher, as per Section 206AA.