TDS Calculator (India)

TDS Calculator – Calculate Tax Deducted at Source Easily

TDS (Tax Deducted at Source) is a mechanism in India where tax is collected at the point of payment. This ensures that taxes are withheld upfront and deposited with the government, helping reduce defaults. Our TDS Calculator helps you quickly compute the amount to be deducted and the net payment that your recipient will receive—just by entering the payment value and applicable TDS rate.

What is TDS?

TDS is a withholding tax deducted by the payer at the time of making payment to a payee, such as rent, consultancy fees, contractor payments, professional services, interest, rent, or commissions. It's governed by Section 192–194 of the Indian Income Tax Act.

Who Should Use a TDS Calculator?

  • Employers calculating TDS on salary payments
  • Businesses deducting TDS from vendors or service providers
  • Individuals handling rent, contractor, professional payments
  • Accountants and bookkeepers seeking quick tax estimates

How to Use the Calculator

  1. Enter the gross payment amount
  2. Input the applicable TDS rate (%) based on payment type
  3. The tool instantly calculates TDS and net payment value
  4. The doughnut chart visually shows deduction vs net

Understanding TDS Rates

  • Salary payments fall under Section 192; rates vary by income slabs
  • Non-salary payments may attract TDS under Sections 194C (contract), 194J (professional fee), 194I (rent), etc.
  • Rates typically range from 2% to 10%, depending on transaction type

Benefits of Using This Calculator

  • 📈 Quick, accurate tax deduction estimates
  • 💡 Helps ensure compliance with TDS rules
  • 🧾 Reduces calculation errors in payroll and accounting
  • ✔️ Free, easy-to-use tool with visual breakdown

Disclaimer & Practical Tips

This calculator provides estimates only. Actual TDS obligations may vary based on section-specific rules, exemptions, rebates, PAN/Aadhaar status, late filing penalties, or interest charges. Always refer to the Income Tax Act or consult a tax advisor.

FAQs – TDS Calculator

1. What is TDS?

Tax Deducted at Source is a direct tax deducted by the payer when making payments to a payee; it helps ensure tax collection upfront.

2. Which TDS rate should I use?

Use the rate specified under relevant section of the Income Tax Act—e.g., 10% for professional fees (Section 194J) or 2% for rent (Section 194I).

3. What if PAN is missing?

If the payee doesn’t provide PAN, TDS rate is higher—usually 20%—so ensure you check current rates under Section 206AA.

4. Is TDS refundable?

Yes. If excess TDS is deducted, the payee can claim refund by filing an income tax return.