TDS Calculator
Calculate TDS deduction
TDS Calculator (India)
Calculate Tax Deducted at Source under various sections
Enter Details
Section 195 Details
Payment to non-resident (other than salary)
TDS Calculation Results
Payment Amount
₹50,000
TDS Applicable
Yes
TDS Amount (0.1%)
₹50
Net Payment to Recipient
₹49,950
How to Use the TDS Calculator
Our TDS Calculator helps you calculate Tax Deducted at Source for various payments under different sections of the Income Tax Act, 1961. Simply enter the payment amount and select the appropriate TDS section to get instant calculations.
Step-by-Step Guide:
- Enter the gross payment amount
- Select the appropriate TDS section based on the nature of payment
- Review the TDS rate and threshold for the selected section
- Check if TDS is applicable based on the payment amount
- View the TDS amount and net payment to the recipient
- Download the calculation results for your records
Features of Our TDS Calculator
Comprehensive TDS Sections
Support for all major TDS sections under Income Tax Act
Threshold Validation
Automatically checks if payment exceeds TDS threshold
Real-time Calculations
Instant TDS calculations as you input payment details
Section Details
Shows TDS rate, threshold, and description for each section
Net Payment Calculation
Shows the actual amount payable to the recipient after TDS
Download Results
Save your TDS calculation results as a text file
Why Use Our TDS Calculator?
TDS compliance is crucial for businesses and individuals making payments. Our calculator helps ensure accurate TDS calculations and compliance with Indian tax laws.
Benefits:
- ✓Accurate TDS calculations
- ✓Avoid penalties for incorrect deductions
- ✓Check TDS applicability
- ✓Plan payments effectively
Use Cases:
- ✓Contractor payments
- ✓Professional fees
- ✓Rent payments
- ✓Commission payments
Who Should Use This Calculator?
This calculator is designed for businesses, professionals, and individuals who need to deduct TDS on various payments.
Business Owners
Calculate TDS for contractor and professional payments
Property Owners
Calculate TDS on rent payments
Employers
Calculate TDS on salary payments
Accountants
Quick TDS calculations for client work
Freelancers
Check TDS on payments received
Students
Learn about TDS and Indian tax system
Understanding TDS (Tax Deducted at Source)
What is TDS?
Tax Deducted at Source (TDS) is a mechanism under the Income Tax Act, 1961, where tax is deducted at the source of income. The person making the payment deducts tax and deposits it with the government on behalf of the recipient.
Common TDS Sections
- • 194C: Contractor/Sub-contractor (1%)
- • 194J: Professional/Technical fees (10%)
- • 194I: Rent (10%)
- • 194H: Commission/Brokerage (5%)
- • 195: Non-resident payments (varies)
TDS Thresholds
- • Single transaction: ₹30,000-50,000
- • Annual aggregate: ₹2.5-5 lakh
- • Property purchase: ₹50 lakh
- • Cash withdrawal: ₹1 crore
TDS Compliance Requirements
Quarterly Statements:
File quarterly statements (24Q, 26Q, 27Q) within 31 days of quarter end
TAN Registration:
Obtain Tax Deduction Account Number (TAN) for TDS compliance
Timely Deposit:
Deposit TDS within 7 days of next month for payments up to ₹50,000
TDS vs TCS
TDS is deducted by the payer, while Tax Collected at Source (TCS) is collected by the seller from the buyer at the time of sale. TCS applies to certain goods and services like scrap, minerals, etc.
Consequences of Non-Compliance
- • Late filing fees: ₹200-₹10,000 per statement
- • Interest on late deposit: 1.5% per month
- • Penalty for failure to deduct: Equal to TDS amount
- • Penalty for non-filing: ₹10,000-₹1,00,000
Frequently Asked Questions
What is the difference between TDS and advance tax?
TDS is deducted at the time of payment and deposited with the government. Advance tax is paid in installments by taxpayers who expect to have tax liability, independent of actual income earned.
Can TDS be claimed as credit by the recipient?
Yes, the recipient can claim TDS as credit against their tax liability. The TDS amount reduces the tax they need to pay. If TDS exceeds their tax liability, they can claim a refund.
What is Form 16A?
Form 16A is a certificate issued by the deductor to the deductee showing the details of TDS deducted and deposited. It serves as proof of TDS for the recipient to claim tax credit.
Is TDS applicable on all payments?
No, TDS is applicable only on specified payments mentioned in the Income Tax Act and when the payment exceeds the prescribed threshold limits. Different sections have different rates and thresholds.
What is the time limit for depositing TDS?
For payments up to ₹50,000 in a month, TDS must be deposited by the 7th of the next month. For payments exceeding ₹50,000, it must be deposited within 7 days of the end of the month.
Can TDS rates be reduced?
Yes, the recipient can apply for a lower TDS rate by obtaining a certificate under Section 195(2) or Section 197 from the Income Tax Department, if they qualify for a lower rate based on their tax liability.