TDS Calculator
Calculate Tax Deducted at Source (TDS) on common payments such as interest, rent, contractor and professional fees.
Rates assume PAN is available. Without PAN, TDS is generally deducted at 20%. Verify the latest section rates.
What Is TDS?
TDS stands for Tax Deducted at Source. Under the Indian Income Tax Act, the person making certain payments must deduct a fixed percentage as tax before paying the rest to the receiver. The deducted amount is deposited with the government against the receiver PAN and can be claimed while filing the income tax return. TDS applies to many everyday payments such as bank interest, professional fees, rent and contractor bills.
This TDS Calculator helps you quickly find how much tax will be deducted on a payment and how much the receiver actually gets in hand. You enter the gross amount and the applicable rate, and it returns the TDS amount and the net payable in rupees.
TDS Formula and Common Rates
The calculation itself is simple. TDS equals the amount multiplied by the rate, and the net amount equals the gross amount minus TDS. The key is choosing the right section and rate:
- Section 194A, bank and FD interest: 10 percent
- Section 194J, professional or technical fees: 10 percent
- Section 194C, contractor payments: 1 percent for individual or HUF, 2 percent for a company
- Section 194I, rent on land or building: 10 percent, and 2 percent on plant or machinery
- Section 194IB, rent paid by individuals above ₹50,000 per month: 5 percent
If the receiver does not provide a PAN, TDS is generally deducted at the higher rate of 20 percent.
Worked Example
Suppose a bank pays you ₹1,00,000 as interest on a fixed deposit. This falls under Section 194A, where the TDS rate is 10 percent. The TDS works out to ₹1,00,000 x 10 percent = ₹10,000. The bank deducts this ₹10,000 and credits the remaining ₹90,000 to you. The ₹10,000 is deposited with the government, and you can adjust it against your total tax liability when you file your return.
Claiming TDS and Form 26AS
TDS is not an extra tax. It is an advance collection that is set off against your final tax for the year. Every deduction made against your PAN appears in Form 26AS and the Annual Information Statement on the income tax portal. When you file your return, you claim credit for this TDS, and if your total liability is lower than the tax already deducted, you receive a refund. Always verify that the deductor has deposited the TDS so your credit reflects correctly.
Frequently Asked Questions
Bank and fixed deposit interest falls under Section 194A, where TDS is deducted at 10 percent once the interest crosses the prescribed threshold in a financial year.
Without a valid PAN, TDS is generally deducted at the higher rate of 20 percent instead of the normal section rate, so it is always better to provide your PAN.
No. TDS is tax collected in advance against your PAN. You claim credit for it when filing your return, and any excess is refunded to you.
Under Section 194I, rent on land or building attracts 10 percent and rent on plant or machinery attracts 2 percent. Individuals paying rent above ₹50,000 per month deduct 5 percent under Section 194IB.
Log in to the income tax portal and view Form 26AS or the Annual Information Statement. Both list every TDS entry deposited against your PAN.
Under Section 194C, TDS is 1 percent when the payee is an individual or HUF and 2 percent when the payee is a company or other entity.