TDS Calculator

TDS (Tax Deducted at Source) is a method of collecting income tax at the point of payment. Any person making specified payments like salary, interest, rent, commission, or professional fees is required to deduct TDS if the payment exceeds the threshold limit. The deductor must deposit the TDS with the government and file quarterly TDS returns.

If the deductee does not provide a valid PAN, TDS is deducted at the higher of: (a) the rate specified in the relevant section, (b) the rate in force, or (c) 20%. In most cases, this means TDS at 20% when PAN is not available. This provision under Section 206AA encourages PAN compliance.

Common TDS sections include: 194A (Interest other than securities) - 10%, 194C (Contractor payments) - 1% for individuals/2% for others, 194H (Commission) - 2%, 194I (Rent for plant/machinery) - 2%, 194I (Rent for land/building) - 10%, 194J (Professional fees) - 10%, 194J (Technical services) - 2%, 194Q (Purchase of goods) - 0.1%. Rates may vary based on deductee type and specific conditions.

Each TDS section has a threshold limit below which no TDS is required. For example: 194A (Interest) - ₹50,000 (₹1,00,000 for senior citizens), 194C (Contractor) - ₹30,000 per transaction or ₹1,00,000 annually, 194H (Commission) - ₹20,000, 194I (Rent) - ₹50,000 per month (changed from an annual ₹2,40,000 effective 1 April 2025), 194J (Professional fees) - ₹50,000. TDS is deducted only when payment exceeds these limits.

TDS must be deposited by the 7th of the following month. For example, TDS deducted in January must be deposited by 7th February. For TDS deducted in March, the due date is 30th April. For government deductors, TDS must be deposited on the same day. Late deposit attracts interest at 1.5% per month under Section 201(1A).