TDS Calculator – Tax Deducted at Source
Calculate (Tax Deducted at Source) on your income. Know how much TDS will be deducted from your payments.
Income/payment amount (e.g. interest, rent, professional fees)
Common: Interest 10%, Rent 10%, Professional fees 10%
Real-World Examples
1FD Interest ₹50,000 (10% TDS)
Bank TDS on interest >₹40K (₹50K for seniors). Submit 15G/15H if income below taxable limit.
2Rent Payment ₹5 Lakh (10% TDS)
TDS on rent >₹2.4L/year. Tenant must deduct and deposit. Form 16A required for landlord.
3Professional Fees ₹1 Lakh (10% TDS)
Section 194J TDS on professional/technical fees >₹30K. Freelancers receive ₹90K in hand.
Frequently Asked Questions
TDS is a mechanism where tax is deducted at the source of income by the payer before making payment. It ensures tax collection at the point of income generation and reduces tax evasion.
Common rates: Salary (as per slab), Interest (10%), Rent (10% property, 2% equipment), Professional fees (10%), Contractor (1-2%), Commission (5%), Prize money (30%), EPF withdrawal before 5 years (10%).
TDS on salary is calculated on estimated annual income minus deductions (80C, 80D, HRA, etc.). The annual tax is divided by 12 for monthly TDS. Employer uses Form 12BA declarations for estimation.
TDS must be deducted at payment or credit, whichever is earlier. Deposit by 7th of next month (30th April for March). Government deductors have different timelines. Late deposit attracts 1.5% per month interest.
Form 16 is TDS certificate for salary income, issued by employer by May 31. Form 16A is for non-salary TDS (interest, rent, professional fees). Both are essential for ITR filing to claim TDS credit.
If TDS deducted exceeds actual tax liability, claim refund while filing ITR. Ensure all TDS reflects in Form 26AS/AIS. Refunds are typically processed within 3-6 months of ITR processing.
Thresholds vary: Interest (₹40K, ₹50K seniors), Rent (₹2.4L/year), Professional fees (₹30K), Contractor (₹30K single, ₹1L annual). Below threshold, no TDS deduction required.
Non-deduction attracts interest (1% per month) and penalty. The expense may be disallowed for deductor. Deductee must still pay tax. Non-filing of TDS returns attracts ₹200/day penalty.
If recipient has not filed ITR for past 2 years and TDS deducted exceeded ₹50,000 each year, higher TDS at 5% or 2x normal rate (whichever higher) applies under Section 206AB.
Form 15G (below 60 years) or 15H (senior citizens) can be submitted to avoid TDS if estimated total income is below taxable limit. Submit at beginning of financial year to bank/payer.
Complete Guide to TDS (Tax Deducted at Source) in India 2025
TDS (Tax Deducted at Source) is a crucial component of India's tax collection system. UnderstandingTDS rates, thresholds, and compliance requirements is essential whether you're an employer, freelancer, landlord, or investor. This comprehensive guide covers everything about TDS calculation and filing.
What is TDS?
TDS is a tax collection mechanism where the payer deducts tax at the time of making specified payments (salary, interest, rent, professional fees, etc.) and deposits it with the government. This ensures tax is collected at the source of income, reducing tax evasion and providing advance tax collection to the government.
TDS Rates for Different Income Types (FY 2024-25)
| Income Type | Section | TDS Rate | Threshold |
|---|---|---|---|
| Salary | 192 | As per slab | Basic exemption |
| Interest on FD/RD | 194A | 10% | ₹40,000 (₹50,000 seniors) |
| Rent (Property) | 194I | 10% | ₹2,40,000/year |
| Professional Fees | 194J | 10% | ₹30,000 |
| Contractor | 194C | 1%/2% | ₹30,000 single/₹1L annual |
| Commission | 194H | 5% | ₹15,000 |
| EPF Withdrawal | 192A | 10% | ₹50,000 (before 5 years) |
| Lottery/Prize | 194B | 30% | ₹10,000 |
How to Avoid TDS on Interest Income
Submit Form 15G/15H
- • Form 15G: For individuals below 60 years whose total income is below taxable limit
- • Form 15H: For senior citizens (60+) whose estimated tax is nil
- • Submit at beginning of financial year to bank/payer
- • Valid for one financial year only
TDS Compliance for Deductors
- Deduction: At time of payment or credit, whichever is earlier
- Deposit: By 7th of next month (30th April for March)
- TDS Return: Quarterly (24Q for salary, 26Q for non-salary)
- Form 16/16A: Issue to deductee by May 31st/within 15 days
Penalties for TDS Non-Compliance
| Default | Penalty |
|---|---|
| Late deduction | 1% per month from due date |
| Late deposit | 1.5% per month from deduction date |
| Late filing of return | ₹200 per day (max: TDS amount) |
| No TAN registration | ₹10,000 penalty |
Higher TDS for Non-Filers (Section 206AB)
Important: If the recipient has not filed ITR for past 2 years AND total TDS deducted exceeded ₹50,000 in each year, higher TDS applies at:
- • Twice the normal rate, OR
- • 5%, whichever is higher
Check compliance using the Income Tax utility before making payments.
How to Check TDS Credit (Form 26AS)
- Login to Income Tax e-filing portal (incometax.gov.in)
- Go to e-File > Income Tax Returns > View Form 26AS
- Verify all TDS entries match your actual deductions
- Also check AIS (Annual Information Statement) for complete picture
- Raise grievance if any TDS is missing or incorrect
TDS Refund Process
If TDS deducted is more than your actual tax liability, you can claim refund while filing ITR:
- Ensure all TDS reflects in Form 26AS
- File ITR before due date (July 31 for non-audit cases)
- Refund is typically processed within 3-6 months
- Interest @6% p.a. is paid on delayed refunds
Related Calculators
- Income Tax Calculator - Calculate total tax liability
- CTC to In-Hand Calculator - TDS impact on salary
- FD Calculator - Plan for TDS on interest
- Professional Tax Calculator - State-wise PT deduction
- Freelancer Tax Calculator - TDS on freelance income
- Section 80C Calculator - Reduce taxable income
Disclaimer: TDS rates and thresholds are subject to changes in tax laws. For the latest rates and compliance requirements, refer to the Income Tax Department website or consult a tax professional.
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Disclaimer: All calculations are estimates based on current tax rules and regulations. Actual values may vary depending on your specific circumstances. Please consult a certified financial advisor or CA for personalized advice.