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TDS Calculator - Calculate Tax Deducted at Source Online

Calculate TDS amount for salary, rent, interest, professional services, and commission payments. Get accurate TDS calculations with latest FY 2025-26 rates and detailed breakdown for all sections.

TDS Calculation Details

₹10K ₹1Cr
Enter the total payment amount before TDS deduction
Higher TDS rate applies if PAN is not available
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Important: TDS rates and thresholds have been updated for FY 2025-26. Section 206AB (higher rates for non-filers) has been removed from April 1, 2025.

TDS Calculation Results

TDS Amount to be Deducted
₹50,000
10% TDS Rate Applied
Gross Payment
₹5,00,000
TDS Deducted
₹50,000
Net Payment
₹4,50,000
TDS Section
194J

TDS Calculation Details

Payment Summary

Component Amount
Payment Type Professional Services
Recipient Category Individual
Applicable Section Section 194J
TDS Rate Applied 10%
Gross Payment Amount ₹5,00,000

TDS Calculation

Component Amount
Threshold Amount ₹30,000
Taxable Amount ₹5,00,000
TDS @ Rate ₹50,000
Surcharge (if applicable) ₹0
Total TDS Payable ₹50,000

Why Our TDS Calculator is the Best in the Market

Latest FY 2025-26 Rates

Updated with the latest TDS rates including recent changes like removal of Section 206AB, reduced commission rates under 194H, and increased thresholds for rent and interest.

All TDS Sections Covered

Comprehensive coverage of all major TDS sections including salary, rent, professional services, commission, interest, and contractor payments with accurate threshold calculations.

Automatic Rate Selection

Intelligent system that automatically applies correct TDS rates based on payment type, recipient category, and PAN availability without manual lookup required.

Real-time Threshold Validation

Instant validation against threshold limits ensuring TDS is calculated only when payment exceeds the minimum threshold for each section.

Detailed Compliance Information

Complete breakdown showing applicable section, due dates, and compliance requirements helping you stay updated with TDS regulations and avoid penalties.

Visual Analytics & Charts

Interactive charts showing payment breakdown, TDS impact analysis, and rate comparisons across different sections for better understanding and decision making.

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TDS Compliance Tips

  • Obtain TAN before deducting TDS from any payments
  • Check threshold limits before applying TDS deduction
  • Deposit TDS by 7th of next month to avoid interest
  • File quarterly TDS returns within due dates
  • Issue TDS certificates (Form 16/16A) to payees
  • Higher rates apply if recipient doesn't provide PAN

Understanding TDS - Tax Deducted at Source

Tax Deducted at Source (TDS) is a mechanism introduced by the Income Tax Department where tax is deducted at the source of income generation. When you make specified payments like salary, rent, or professional fees, you must deduct TDS at prescribed rates and deposit it with the government.

How TDS Works

TDS ensures regular tax collection and reduces tax evasion by collecting tax at the point of income generation. The person making the payment (deductor) deducts tax and deposits it with the government on behalf of the recipient (deductee).

TDS Amount = Payment Amount × TDS Rate
Net Payment to Recipient = Gross Payment - TDS Amount
(Subject to threshold limits for each section)

Major TDS Sections and Rates for FY 2025-26

Section Nature of Payment TDS Rate Threshold Limit
192 Salary payments As per slab rates Basic exemption limit
194A Interest (other than securities) 10% ₹50,000 (Bank), ₹1,00,000 (Sr. Citizens)
194C Contractor/Sub-contractor 1% (Individual), 2% (Others) ₹30,000 (Single), ₹1,00,000 (Annual)
194H Commission/Brokerage 2% (Reduced from 5%) ₹15,000
194I Rent 10% ₹6,00,000 (Increased from ₹2,40,000)
194J Professional/Technical Services 10% (Professional), 2% (Technical) ₹30,000

Key Changes in TDS for FY 2025-26

  • Section 206AB Removed: Higher TDS rates for non-filers have been eliminated from April 1, 2025
  • Commission Rate Reduced: TDS on commission/brokerage reduced from 5% to 2% under Section 194H
  • Rent Threshold Increased: TDS threshold for rent increased from ₹2.4 lakhs to ₹6 lakhs annually
  • Senior Citizens Benefit: Interest threshold increased from ₹50,000 to ₹1,00,000 for senior citizens
  • New Section 194T: TDS on partner's remuneration at 10% if exceeding ₹20,000 annually

TDS Compliance Requirements

  • Obtain Tax Deduction Account Number (TAN) before deducting TDS
  • Deduct TDS at correct rates based on nature of payment and recipient type
  • Deposit TDS within prescribed due dates (7th of next month)
  • File quarterly TDS returns (24Q, 26Q, 27Q) within due dates
  • Issue TDS certificates to deductees within specified time limits
  • Maintain proper records and documentation for all TDS transactions

Consequences of Non-Compliance

Non-compliance with TDS provisions can result in interest charges at 1% per month for late deduction, 1.5% per month for late deposit, and penalties ranging from ₹10,000 to ₹1,00,000 depending on the nature of default.

TDS Calculator - Frequently Asked Questions

TDS (Tax Deducted at Source) is tax deducted by the payer before making payments like salary, rent, or professional fees. It's calculated as Payment Amount × TDS Rate, subject to threshold limits. For example, 10% TDS on ₹1 lakh professional fees = ₹10,000 TDS if payment exceeds ₹30,000 threshold.

Key TDS rates for FY 2025-26: Salary (slab rates), Interest 10%, Professional services 10%, Rent 10%, Commission 2% (reduced from 5%), Contractor 1-2%. Important: Section 206AB (higher rates for non-filers) has been removed from April 1, 2025.

TDS thresholds for FY 2025-26: Rent ₹6 lakhs annually (increased from ₹2.4 lakhs), Professional services ₹30,000, Interest ₹50,000 (₹1 lakh for senior citizens), Commission ₹15,000, Contractor ₹30,000 single payment or ₹1 lakh annually. No TDS if payment is below threshold.

If the payment recipient doesn't provide PAN, TDS is deducted at 20% or the applicable rate, whichever is higher. This higher rate encourages PAN compliance. However, the deductee can claim refund of excess TDS while filing income tax return if their actual tax liability is lower.

TDS must be deposited by the 7th of the month following the month of deduction. For March deductions, the due date is April 30th. Late deposit attracts interest at 1.5% per month. Use challan 281 for online payment through authorized banks or NSDL/TIN-NSDL website.

Yes, if TDS deducted exceeds your actual tax liability, you can claim refund while filing ITR. The excess amount will be refunded after processing your return. You can check TDS credit in Form 26AS or AIS (Annual Information Statement) available on the income tax e-filing portal.

TAN (Tax Deduction Account Number) is a 10-digit alphanumeric number required for anyone deducting TDS. It must be obtained before deducting TDS and quoted on all TDS certificates, returns, and challans. Apply online on NSDL-TIN website. Penalty of ₹10,000 applies for operating without TAN.

TDS returns must be filed quarterly: Q1 (July 31), Q2 (October 31), Q3 (January 31), Q4 (May 31). Use Forms 24Q (salary), 26Q (non-salary), 27Q (non-residents). Late filing attracts penalty of ₹200 per day. File online on TRACES website with DSC (Digital Signature Certificate).

Disclaimer: This TDS calculator is for informational purposes only and does not constitute legal or tax advice. TDS rates and provisions are subject to change. Please consult the latest Income Tax Act provisions and your tax advisor for accurate compliance. Actual TDS calculations may vary based on specific circumstances and applicable exemptions.

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