TDS (Tax Deducted at Source) Calculator
Estimate TDS liability for salary, rent, professional fees & more.
Use this free TDS calculator to estimate Tax Deducted at Source for various Indian tax categories under Section 192, 194, 194J, etc. Calculate basic and advanced TDS deductions with threshold support.
Calculator Settings
If PAN is not available, TDS is deducted at 20% or the category rate, whichever is higher.
TDS Summary
Calculator education
How TDS is calculated
This calculator estimates the Tax Deducted at Source (TDS) based on the payment category, amount, and PAN availability, applying threshold logic where required.
1. Select category and amount
Choose the nature of payment (e.g., Professional Fees, Contractors, Rent) and enter the payment amount.
2. Check thresholds and PAN
In advanced mode, the tool tracks if your cumulative FY payments cross the threshold. Providing a valid PAN ensures standard rates.
3. Calculate Net Payable
The calculator applies the relevant section rate to compute the TDS amount and the final net amount payable to the deductee.
Tax Information
TDS Rates and Sections
Different payments attract different TDS rates (e.g., 10% for 194J, 1% or 2% for 194C). If the deductee fails to provide a PAN, TDS is deducted at 20% or the standard rate, whichever is higher.
Key Drivers
What affects the calculation
The payment category, presence of a valid PAN, and whether annual limits (e.g., ₹30,000 or ₹1,00,000 for 194C) are breached drive the TDS amount.
Planning Note
Good to know
TDS is merely an advance tax. Deductees can claim credit for the TDS deducted by filing their Income Tax Return and checking Form 26AS.
Overview
What is TDS (Tax Deducted at Source)?
TDS or Tax Deducted at Source is a means of collecting income tax in India at the very source of income. Under the Income Tax Act, 1961, any person making specified payments (like salary, interest, commission, professional fees, etc.) is required to deduct a certain percentage of tax before making the full payment to the receiver.
Key Features of This TDS Calculator
Calculates TDS for multiple common categories and sections (192, 194, 194C, 194J, etc.).
Supports Net to Gross calculation (Reverse TDS calculation).
Applies higher TDS rates automatically if PAN is not available (usually 20%).
Advanced mode handles multiple payments in a financial year to check if thresholds are crossed.
Provides custom rate support for unique edge cases.
How it works
How TDS is Calculated - Formula Explained
If you are calculating Gross to Net: TDS is deducted from the specified payment amount. If you are calculating Net to Gross (Reverse TDS): Gross Amount = Net Amount / (1 - Rate / 100). The TDS rate applied depends on the nature of the payment, the specific section, and whether the payee has provided their PAN.
TDS Calculation Formula
TDS Amount = Payment Amount x (TDS Rate / 100) Net Amount = Payment Amount - TDS Amount
Payment
P
Total invoice/amount
TDS rate
R
Depends on section
TDS amount
T
Tax deducted
Formula context
Review the formula flow to see how the core inputs combine into the final output.
1. Select category and amount
Choose the nature of payment (e.g., Professional Fees, Contractors, Rent) and enter the payment amount.
2. Check thresholds and PAN
In advanced mode, the tool tracks if your cumulative FY payments cross the threshold. Providing a valid PAN ensures standard rates.
3. Calculate Net Payable
The calculator applies the relevant section rate to compute the TDS amount and the final net amount payable to the deductee.
Quick guide
Example Calculation
If you are paying Rs. 50,000 as professional fees (Section 194J) and the payee has a PAN, the TDS rate is 10%. The TDS amount is Rs. 5,000, and the net payment made to the payee is Rs. 45,000. If no PAN is provided, the rate jumps to 20%, resulting in Rs. 10,000 TDS.
Worked example
Payment
Rs. 50,000
TDS rate
10%
TDS amount
Rs. 5,000
Net Payable
Rs. 45,000
Formula substitution
TDS amount = 50,000 x 10% = Rs. 5,000
Net Payable = 50,000 - 5,000 = Rs. 45,000
TDS is merely an advance tax. Deductees can claim credit for the TDS deducted by filing their Income Tax Return and checking Form 26AS.
Tax information
TDS Rates and Sections
Different payments attract different TDS rates (e.g., 10% for 194J, 1% or 2% for 194C). If the deductee fails to provide a PAN, TDS is deducted at 20% or the standard rate, whichever is higher.
The payment category, presence of a valid PAN, and whether annual limits (e.g., ₹30,000 or ₹1,00,000 for 194C) are breached drive the TDS amount.
Calculator education
How TDS is calculated
This calculator estimates the Tax Deducted at Source (TDS) based on the payment category, amount, and PAN availability, applying threshold logic where required.
1. Select category and amount
Choose the nature of payment (e.g., Professional Fees, Contractors, Rent) and enter the payment amount.
2. Check thresholds and PAN
In advanced mode, the tool tracks if your cumulative FY payments cross the threshold. Providing a valid PAN ensures standard rates.
3. Calculate Net Payable
The calculator applies the relevant section rate to compute the TDS amount and the final net amount payable to the deductee.
Tax Information
TDS Rates and Sections
Different payments attract different TDS rates (e.g., 10% for 194J, 1% or 2% for 194C). If the deductee fails to provide a PAN, TDS is deducted at 20% or the standard rate, whichever is higher.
Key Drivers
What affects the calculation
The payment category, presence of a valid PAN, and whether annual limits (e.g., ₹30,000 or ₹1,00,000 for 194C) are breached drive the TDS amount.
Planning Note
Good to know
TDS is merely an advance tax. Deductees can claim credit for the TDS deducted by filing their Income Tax Return and checking Form 26AS.
Use cases
Common TDS Scenarios
TDS rules vary depending on the payment type and cumulative transaction limits.
Scenario 1: Payment to Contractors (Sec 194C)
TDS is 1% for individuals/HUFs and 2% for others. It is applicable if a single payment exceeds Rs. 30,000 or total annual payments exceed Rs. 1,00,000.
Scenario 2: Rent Payments (Sec 194I)
TDS of 10% on land/building rent or 2% on plant/machinery rent applies if the total annual rent exceeds Rs. 2,40,000.
Scenario 3: Non-availability of PAN
As per Section 206AA, if the payee does not furnish their PAN, TDS is deducted at a higher rate, typically 20% or the applicable rate, whichever is higher.
FAQ
Frequently Asked What is TDS (Tax Deducted at Source) Questions
Common questions about TDS return filing, Form 16/16A, and claiming TDS refunds.
TDS is generally deducted at the time of making the specified payment or crediting it to the payee's account, whichever is earlier.
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