TDS Calculator
Calculate Tax Deducted at Source (TDS) for all major sections under the Income Tax Act. Instantly find TDS amount, net payment and applicable rate.
Calculate TDS Amount
Select the applicable section, enter the payment amount, and choose payee type to get instant TDS calculation.
TDS Rate Quick Reference
Common TDS rates for FY 2024-25. Rates apply when PAN is available. Without PAN, TDS is at 20% or double the rate, whichever is higher (Section 206AA).
| Section | Nature of Payment | Threshold | Individual/HUF | Company/Firm |
|---|---|---|---|---|
| 194 | Dividends | ₹5,000 | 10% | 10% |
| 194A | Interest (Banks) | ₹40,000 | 10% | 10% |
| 194A | Interest (Others) | ₹5,000 | 10% | 10% |
| 194B | Lottery Winnings | ₹10,000 | 30% | 30% |
| 194C | Contractors | ₹30,000 / ₹1L | 1% | 2% |
| 194D | Insurance Commission | ₹15,000 | 5% | 10% |
| 194H | Commission/Brokerage | ₹15,000 | 5% | 5% |
| 194I(a) | Rent (Plant/Machinery) | ₹2,40,000/yr | 2% | 2% |
| 194I(b) | Rent (Land/Building) | ₹2,40,000/yr | 10% | 10% |
| 194IA | Property Purchase | ₹50,00,000 | 1% | 1% |
| 194J | Technical Fees | ₹30,000 | 2% | 2% |
| 194J | Professional Fees | ₹30,000 | 10% | 10% |
| 194Q | Purchase of Goods | ₹50,00,000/yr | 0.1% | 0.1% |
What is TDS?
Tax Deducted at Source (TDS) is a system introduced by the Income Tax Department where the payer deducts tax before making the actual payment to the receiver. This ensures a steady revenue stream for the government and prevents tax evasion. TDS is governed by Chapter XVII-B of the Income Tax Act, 1961.
How TDS Works
- Deductor: The person or entity making the payment (employer, bank, business) — responsible for deducting TDS.
- Deductee: The person receiving the payment — the TDS is on their behalf and is credited to their Form 26AS.
- Deposit: Deductor must deposit TDS with the government by the 7th of the following month (30th April for March).
- TDS Return: Quarterly TDS returns (Form 24Q/26Q) must be filed by the deductor.
- Form 16/16A: TDS certificate issued to deductee as proof of tax deducted.
Section 206AA — No PAN Higher TDS
If the payee does not provide a valid PAN, Section 206AA mandates TDS at the higher of: the applicable rate, twice the applicable rate, or 20%. This applies to most sections — making it essential for every taxpayer to have and furnish their PAN.
Common TDS Sections and Rates
Different types of payments attract TDS under different sections. Salary is deducted under Section 192 at your slab rate; bank interest above ₹40,000 (₹50,000 for seniors) is deducted under Section 194A at 10%; professional or technical fees above ₹30,000 fall under Section 194J at 10%; rent above ₹2,40,000 a year is covered by Section 194-I; and contractor payments come under Section 194C. Knowing which section applies tells you the correct rate and the threshold below which no TDS is deducted.
How to Claim Back Excess TDS
TDS is only an advance collection of tax — it is not an extra tax. Every rupee deducted is credited against your final tax liability. If the total TDS deducted during the year is more than your actual tax due (common when your income is below the taxable limit or you have deductions to claim), you receive the excess back as a refund when you file your income tax return. Always check your Form 26AS and Annual Information Statement (AIS) to confirm that the TDS deducted has actually been deposited against your PAN before filing.
How to Avoid Unnecessary TDS
- Submit Form 15G/15H: If your total income is below the taxable limit, these forms tell your bank not to deduct TDS on interest.
- Always furnish your PAN: This avoids the punitive 20% rate under Section 206AA.
- Declare investments to your employer: Timely proof of 80C, HRA, and other deductions reduces the TDS cut from your salary each month.
- Apply for a lower-deduction certificate under Section 197 if your tax liability is genuinely lower than the standard TDS rate.
Frequently Asked Questions — TDS Calculator
TDS is a mechanism under the Income Tax Act, 1961, where tax is deducted at the point of payment. The payer (deductor) deducts a percentage of the amount and deposits it with the government on behalf of the payee (deductee). The deductee can claim credit for TDS while filing their income tax return.
Under Section 206AA, if the payee does not furnish their PAN, TDS must be deducted at the higher of: (a) the applicable rate, (b) 20%. This makes it significantly more costly for payees without a PAN card.
The deductor is the person making the payment (e.g., a company paying rent or interest). The deductee is the person receiving the payment (e.g., landlord, bank deposit holder). The deductor is responsible for deducting TDS and depositing it with the government by the due date.
Section 194J covers fees for professional or technical services. Technical services (software development, IT support, etc.) attract 2% TDS. Professional services (doctors, lawyers, chartered accountants, architects, etc.) attract 10% TDS. The threshold for both is ₹30,000 per year.
Section 194C applies to payments to contractors. TDS is 1% for individual/HUF payees and 2% for others. It is triggered if a single contract exceeds ₹30,000 or the aggregate payment in a financial year exceeds ₹1,00,000.
Section 194N requires banks to deduct TDS on cash withdrawals exceeding ₹1 crore in a financial year (for those who file ITR) at 2%. For non-ITR filers, TDS applies from ₹20 lakh: 2% on withdrawals between ₹20 lakh and ₹1 crore, and 5% above ₹1 crore.
Yes. If TDS deducted exceeds your actual tax liability, the excess is refunded by the Income Tax Department after you file your Income Tax Return (ITR). You can claim refund of the entire TDS if your total income is below the exemption limit.