TDS Calculator

Calculate TDS on salary, interest, rent, professional fees, and other income types. Includes PAN vs non-PAN rates and applicable sections.

About This Calculator

Tax Deducted at Source (TDS) is a mechanism to collect income tax at the source of income generation. Different types of income have different TDS rates, and the rates vary based on whether the recipient has provided their PAN (Permanent Account Number).

Our TDS calculator helps you determine the exact TDS amount for various income types and shows the applicable section under which TDS is deducted.

TDS Rates by Income Type:

  • Salary (Section 192): As per tax slab
  • Interest on Securities (Section 194A): 10% (with PAN), 20% (without PAN)
  • Rent (Section 194I): 10% (with PAN), 20% (without PAN)
  • Professional Fees (Section 194J): 10% (with PAN), 20% (without PAN)
  • Contractor Payments (Section 194C): 1% (with PAN), 20% (without PAN)
  • Commission (Section 194H): 5% (with PAN), 20% (without PAN)

PAN vs Non-PAN Impact:

  • With PAN: Standard TDS rates apply
  • Without PAN: Higher TDS rate of 20% (except for specific cases)
  • Importance of PAN: Significantly reduces TDS burden

TDS Exemptions:

  • Interest: No TDS if annual interest < ₹40,000 (₹50,000 for senior citizens)
  • Rent: No TDS if annual rent < ₹2.4 lakh
  • Professional Fees: No TDS if annual payment < ₹30,000

Features:

  • Calculate TDS for multiple income types
  • PAN vs non-PAN rate comparison
  • Applicable section identification
  • Visual TDS breakdown
  • Net amount calculation

Frequently Asked Questions

What is TDS?

TDS (Tax Deducted at Source) is a system where the person making specified payments deducts tax at the time of payment and deposits it with the government. It applies to salary, interest, rent, professional fees, and other payments. The recipient receives the net amount after TDS deduction and can claim credit when filing income tax returns.

Who deducts TDS?

TDS is deducted by the payer (deductor) before making payment to the recipient (deductee). For salary, the employer deducts TDS. For interest, the bank deducts TDS. For rent, the tenant deducts TDS (if applicable). The deducted amount is deposited with the Income Tax Department on behalf of the recipient.

What is the TDS rate for salary?

TDS on salary is deducted as per the applicable income tax slab rates of the employee. Employers calculate estimated annual income, apply tax slabs, and deduct TDS monthly. Unlike other income types, salary TDS doesn't have a flat rate - it varies based on the employee's total taxable income and applicable deductions.

When is TDS not deducted?

TDS is not deducted when payment amounts are below specified thresholds: Interest below ₹40,000/year (₹50,000 for seniors), Rent below ₹2.4 lakh/year, Professional fees below ₹30,000/transaction, Contractor payments below ₹30,000/transaction. These exemptions help reduce compliance burden for small payments.

How to claim TDS credit?

TDS credit can be claimed when filing your Income Tax Return (ITR). Check Form 26AS on the income tax portal to see all TDS deducted against your PAN. The TDS amount is credited as tax already paid and adjusted against your total tax liability. Any excess TDS is refunded after ITR processing.

What is Form 26AS?

Form 26AS is an annual tax statement that shows all tax credits against your PAN, including TDS deducted by others, advance tax paid, self-assessment tax paid, and refund details. It's available on the Income Tax Department's e-filing portal and should be verified before filing your ITR to ensure all TDS credits are properly recorded.

Why is TDS higher without PAN?

If the recipient doesn't provide their PAN, TDS is deducted at a higher rate of 20% (instead of the standard rate). This is a penalty for non-compliance. It's mandatory for the deductee to provide PAN to the deductor to ensure TDS is deducted at correct rates and properly credited to their account.

What is TDS return?

TDS returns are quarterly statements that deductors must file with the Income Tax Department, detailing all TDS deducted and deposited. Different forms apply: Form 24Q (salary), Form 26Q (non-salary to residents), Form 27Q (payments to non-residents). Late filing attracts penalties and interest.

Can TDS be refunded?

Yes, if total TDS deducted exceeds your actual tax liability, you can claim a refund by filing your Income Tax Return. The excess amount is refunded to your bank account after ITR processing. This commonly happens when you have multiple TDS deductions but your total income falls in a lower tax bracket.

What is TDS certificate?

TDS certificates (Form 16/16A) are documents issued by the deductor to the deductee as proof of tax deducted. Form 16 is for salary TDS, while Form 16A is for non-salary TDS. These certificates are essential for filing ITR and claiming TDS credit. Deductors must issue these certificates quarterly or annually.