TDS stands for Tax Deducted at Source. It is a system where the payer deducts income tax from the payment made to the recipient and deposits it with the government on the recipient's behalf.

How do I claim TDS refund?

If excess TDS is deducted, you can claim a refund by filing your Income Tax Return (ITR). The refund is processed by the Income Tax Department after verification.

Is TDS applicable to NRIs?

Yes. TDS on payments to NRIs is governed by Section 195. The rates may vary based on DTAA (Double Tax Avoidance Agreement) between India and the NRI's country of residence.

TDS Calculator – Calculate Tax Deducted at Source Instantly | StoreDropship

TDS Calculator

Q: Is this TDS Calculator free to use?

Yes, this TDS Calculator is completely free to use. No signup, login, or payment is required.

Q: What is the TDS rate on salary?

TDS on salary under Section 192 is deducted based on the applicable income tax slab rates for the financial year. There is no fixed single percentage — it depends on the employee's estimated annual income and applicable deductions.

Q: What happens if PAN is not provided?

If the deductee does not provide a valid PAN, TDS is deducted at 20% or twice the applicable rate, whichever is higher, as per Section 206AA of the Income Tax Act.

Q: What is the TDS rate on professional fees?

TDS on professional or technical fees under Section 194J is 10% for professional services and 2% for technical services, when payment exceeds ₹30,000 per year.

Q: Can I submit Form 15G or 15H to avoid TDS?

Yes. Individuals with income below the taxable limit can submit Form 15G (non-senior citizens) or Form 15H (senior citizens) to request zero TDS deduction on FD interest or certain other incomes.

Calculate Tax Deducted at Source instantly — on salary, rent, FD interest, professional fees, and more. Accurate TDS rates for FY 2024-25.

Payment Type Select the nature of payment for TDS calculation. Please select a payment type.

Gross Payment Amount (₹) Enter the total payment amount before TDS deduction. Please enter a valid positive amount.

PAN Card Status TDS doubles (minimum 20%) when PAN is not provided.

Deductee Type (for Salary) Relevant for salary and FD interest threshold limits.

✅ TDS Calculation Result

Gross Payment —

TDS Rate —

TDS Amount —

Net Amount Payable —

How to Use the TDS Calculator

Select Payment Type: Choose the nature of payment from the dropdown — salary, rent, FD interest, professional fees, contractor payment, or others.
Enter Payment Amount: Type the gross payment amount in Indian Rupees for the period you want to calculate TDS on.
Select PAN Status: Indicate whether the deductee has provided a valid PAN card. TDS rates increase significantly when PAN is absent.
Select Deductee Type: Choose whether the payee is a regular individual, senior citizen, or super senior citizen — this affects threshold limits for salary and FD interest.
Click Calculate TDS: Press the button to instantly see the applicable TDS rate, TDS amount deductible, and net amount payable to the deductee.

Key Features of This TDS Calculator

📊

Multiple Payment Types

Covers salary, rent, FD interest, professional fees, contractor payments, commission, lottery winnings, and more under the correct IT sections.

🆔

PAN-Based Rate Adjustment

Automatically applies Section 206AA — doubles TDS or applies 20% minimum when PAN is not provided by the deductee.

⚡

Instant Calculation

Results appear instantly in your browser. No server processing, no waiting — fully client-side with accurate arithmetic.

🧾

Section Reference Shown

Displays the applicable IT Act section for each payment type so you know exactly which rule governs your TDS deduction.

🇮🇳

Indian Format Output

All amounts are displayed in Indian Rupee format with ₹ symbol and proper Indian number formatting for easy reading.

📱

Mobile Friendly

Fully responsive design works seamlessly on phones, tablets, and desktops. Calculate TDS anywhere, anytime without installing anything.

TDS Formula and How It Works

TDS (Tax Deducted at Source) is calculated using a straightforward formula. The deductor applies the applicable rate to the gross payment and deducts that amount before transferring the net payment to the deductee.

TDS Amount = Gross Payment × TDS Rate ÷ 100
Net Payment = Gross Payment − TDS Amount

If PAN not provided:
Effective Rate = MAX(Standard Rate × 2, 20%)

Gross Payment: The total amount before any TDS deduction.

TDS Rate: The rate prescribed under the relevant section of the Income Tax Act, 1961.

Net Payment: The amount actually received by the deductee after TDS is deducted.

Section 206AA: Mandates higher TDS when PAN is absent — the higher of 20% or twice the normal rate applies.

The table below summarises commonly used TDS rates for FY 2024-25:

Payment Type	Section	TDS Rate	Threshold
Salary	192	Slab Rate	Basic exemption
FD / Bank Interest	194A	10%	₹40,000 / ₹50,000 (SR)
Rent – Land/Building	194I	10%	₹2,40,000/year
Rent – Plant/Machinery	194I	2%	₹2,40,000/year
Professional Fees	194J	10%	₹30,000/year
Technical Services	194J	2%	₹30,000/year
Contractor – Ind/HUF	194C	1%	₹30,000 / ₹1,00,000
Contractor – Others	194C	2%	₹30,000 / ₹1,00,000
Commission / Brokerage	194H	5%	₹15,000/year
Lottery / Winnings	194B	30%	₹10,000

Practical TDS Calculation Examples

🇮🇳 Example 1 — Mumbai, Maharashtra: FD Interest

Scenario: Rajan Mehta has a fixed deposit with SBI, Mumbai. The bank pays him ₹80,000 as annual FD interest. He has provided his PAN card.

Section 194A applies. TDS rate = 10%. Threshold ₹40,000 exceeded.

TDS = ₹80,000 × 10% = ₹8,000 | Net Interest Received = ₹72,000

🇮🇳 Example 2 — Delhi: Commercial Rent

Scenario: A company in Delhi pays monthly rent of ₹60,000 for office space. Annual rent = ₹7,20,000. PAN provided by landlord.

Section 194I applies. TDS rate = 10%. Threshold ₹2,40,000 exceeded.

Monthly TDS = ₹60,000 × 10% = ₹6,000 | Net Monthly Rent = ₹54,000

🇮🇳 Example 3 — Bengaluru: Professional Fees (No PAN)

Scenario: A startup in Bengaluru pays a freelance consultant ₹1,00,000 for professional services. The consultant has not provided PAN.

Section 194J applies. Normal rate 10%. Section 206AA: MAX(20%, 20%) = 20%.

TDS = ₹1,00,000 × 20% = ₹20,000 | Net Payment = ₹80,000

🌍 Example 4 — International Comparison: UK Contractor

Scenario: In India, a contractor (company) receives ₹5,00,000 for a project. PAN provided. Under Section 194C, TDS = 2%.

Compare: In the UK, contractors face 20-30% under the Construction Industry Scheme (CIS). India's contractor TDS at 2% is a minimal deduction.

TDS (India) = ₹5,00,000 × 2% = ₹10,000 | Net Payment = ₹4,90,000

What Is TDS (Tax Deducted at Source)?

Tax Deducted at Source (TDS) is a mechanism introduced by the Indian government under the Income Tax Act, 1961, to collect income tax at the very point where income is generated. Instead of waiting for the taxpayer to file returns and pay tax, the person making the payment deducts a prescribed percentage and deposits it directly with the government.

TDS applies to a wide range of income types — salaries, interest on fixed deposits, rent, professional fees, contractor payments, commissions, and more. Each type of payment has a specific TDS rate and threshold limit defined under separate sections of the Income Tax Act. The deductor is legally responsible for deducting and depositing TDS on time and filing TDS returns quarterly.

TDS is ultimately credited to the deductee's (recipient's) tax account and can be claimed as a tax credit when filing the annual Income Tax Return (ITR). If TDS deducted exceeds the actual tax liability, the taxpayer receives a refund from the Income Tax Department. This system ensures a steady flow of tax revenue for the government while reducing tax evasion significantly.

TDS in Multiple Languages

Hindi (हिन्दी)

स्रोत पर कर कटौती (TDS) — भुगतान करते समय कर काटना।

Tamil (தமிழ்)

மூலத்தில் வரி கழிக்கப்படுகிறது — TDS என அழைக்கப்படுகிறது।

Telugu (తెలుగు)

మూలంలో పన్ను తగ్గింపు — TDS అని పిలుస్తారు।

Bengali (বাংলা)

উৎসে কর কর্তন — TDS, আয়ের উৎসে কর কাটা হয়।

Marathi (मराठी)

स्रोतावर कर कपात — TDS म्हणजे उत्पन्नावर कर वजा करणे।

Gujarati (ગુજરાતી)

સ્ત્રોત પર કર કપાત — TDS, ચૂકવણી કરતી વખતે કર કાપવો।

Kannada (ಕನ್ನಡ)

ಮೂಲದಲ್ಲಿ ತೆರಿಗೆ ಕಡಿತ — TDS ಎಂದು ಕರೆಯಲಾಗುತ್ತದೆ।

Malayalam (മലയാളം)

ഉറവിടത്തിൽ നികുതി കിഴിക്കൽ — TDS ആണ്।

Spanish

Impuesto deducido en la fuente — similar al sistema de retención fiscal.

French

Retenue à la source — l'impôt est prélevé directement sur le paiement.

German

Quellensteuer — Steuerabzug direkt bei der Zahlung an den Empfänger.

Japanese

源泉徴収 (Gensen Chōshū) — 支払い時に税金を差し引く制度。

Arabic

ضريبة الاستقطاع من المصدر — خصم الضريبة عند الدفع مباشرة.

Portuguese

Imposto retido na fonte — dedução de imposto no momento do pagamento.

Korean

원천징수 (Woncheon Jingshu) — 지급 시점에 세금을 원천에서 공제.

Frequently Asked Questions — TDS Calculator

Is this TDS Calculator free to use?

Yes, this TDS Calculator is completely free to use. There is no signup, no login, and no payment required at any point.

What is TDS and why is it deducted?

TDS stands for Tax Deducted at Source. It is deducted by the payer at the time of making certain payments — like salary, rent, or interest — and deposited with the government. This ensures tax is collected at the point of income generation, reducing tax evasion.

What is the TDS rate on salary?

TDS on salary under Section 192 is calculated based on the employee's estimated annual income and the applicable income tax slab rates. There is no single fixed percentage — it depends on total income, declared deductions, and chosen tax regime (old or new).

What is the TDS rate on rent?

TDS on rent under Section 194I is 10% for land, building, and furniture, and 2% for plant and machinery. This applies when annual rent payments exceed ₹2,40,000.

What happens if PAN is not provided?

If the deductee does not provide a valid PAN, Section 206AA requires TDS to be deducted at the higher of 20% or twice the applicable standard rate. This is a significant penalty for not providing PAN.

What is the TDS rate on FD interest?

TDS on fixed deposit interest under Section 194A is 10% when PAN is provided. It applies when annual interest exceeds ₹40,000 for regular individuals or ₹50,000 for senior citizens.

What is the TDS rate on professional fees?

TDS on professional fees under Section 194J is 10% for professional services (doctors, lawyers, architects) and 2% for technical services. It applies when payment exceeds ₹30,000 per year.

What is the TDS rate on contractor payments?

TDS on contractor payments under Section 194C is 1% for individuals/HUF and 2% for companies. It applies when a single contract payment exceeds ₹30,000 or aggregate payments exceed ₹1,00,000 in a financial year.

Can I submit Form 15G or 15H to avoid TDS on FD interest?

Yes. Individuals whose total income is below the taxable limit can submit Form 15G (for non-senior citizens) or Form 15H (for senior citizens aged 60+) to the bank or financial institution at the start of the financial year to request nil TDS deduction on interest income.

How do I claim a TDS refund?

If more TDS has been deducted than your actual tax liability, you can claim a refund by filing your Income Tax Return (ITR). The refund is credited directly to your bank account after the Income Tax Department processes and verifies your return.

What is the due date for depositing TDS?

TDS deducted in any month must be deposited to the government by the 7th of the following month. For March deductions, the due date is April 30th. Late deposits attract interest at 1.5% per month under Section 201(1A).

Is TDS applicable on payments to NRIs?

Yes. TDS on payments to Non-Resident Indians (NRIs) is governed by Section 195. The applicable rate may be lower if a Double Taxation Avoidance Agreement (DTAA) exists between India and the NRI's country of residence. The NRI must provide a Tax Residency Certificate (TRC) to claim DTAA benefits.

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Tds Calculator

TDS Calculator

How to Use the TDS Calculator

Key Features of This TDS Calculator

Multiple Payment Types

PAN-Based Rate Adjustment

Instant Calculation

Section Reference Shown

Indian Format Output

Mobile Friendly

TDS Formula and How It Works

Practical TDS Calculation Examples

🇮🇳 Example 1 — Mumbai, Maharashtra: FD Interest

🇮🇳 Example 2 — Delhi: Commercial Rent

🇮🇳 Example 3 — Bengaluru: Professional Fees (No PAN)

🌍 Example 4 — International Comparison: UK Contractor

What Is TDS (Tax Deducted at Source)?

TDS in Multiple Languages

Frequently Asked Questions — TDS Calculator

Recommended Hosting

Hostinger

Contact Us

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🏢 Registered Business Details

TDS Calculator

How to Use the TDS Calculator

Key Features of This TDS Calculator

Multiple Payment Types

PAN-Based Rate Adjustment

Instant Calculation

Section Reference Shown

Indian Format Output

Mobile Friendly

TDS Formula and How It Works

Practical TDS Calculation Examples

🇮🇳 Example 1 — Mumbai, Maharashtra: FD Interest

🇮🇳 Example 2 — Delhi: Commercial Rent

🇮🇳 Example 3 — Bengaluru: Professional Fees (No PAN)

🌍 Example 4 — International Comparison: UK Contractor

What Is TDS (Tax Deducted at Source)?

TDS in Multiple Languages

Frequently Asked Questions — TDS Calculator

Recommended Hosting

Hostinger

Contact Us

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SEO & Text Tools

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