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TDS Calculator

Calculate Tax Deducted at Source instantly based on payment section and limits.

Payment Details

If PAN is not provided, TDS is deducted at 20% or the standard rate, whichever is higher.
Check this if the yearly payment has already exceeded the threshold limit for this section.

TDS Calculation Result

TDS Amount to Deduct

₹ 5,000

Gross Payment Amount ₹ 50,000
TDS Deducted 10% - ₹ 5,000
Net Payable to Vendor ₹ 45,000

Understanding TDS (Tax Deducted at Source)

TDS is a means of collecting income tax in India, governed by the Income Tax Act, 1961. Any company or person making a specified payment is required to deduct tax at source if the payment exceeds certain threshold limits.

The person or company making the payment is the Deductor, while the person receiving the payment is the Deductee. The deductor is responsible to deposit this TDS amount to the Central Government before the 7th of the following month.

Common TDS Due Dates
  • Payment to Govt: 7th of next month (except March: 30th April)
  • Q1 Return (Form 26Q): 31st July
  • Q2 Return (Form 26Q): 31st October
  • Q3 Return (Form 26Q): 31st January
  • Q4 Return (Form 26Q): 31st May

Frequently Asked Questions

TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax at a prescribed rate before making payment. Employers deduct TDS on salary, businesses deduct on rent, professional fees, contracts, etc. The deducted amount is deposited with the government on behalf of the payee.
Common TDS rates: Salary (as per income tax slab), Rent above ₹2.4L/year (10%), Professional/Technical fees (10%), Commission (5%), Interest on FD (10%), Contractor payments (1-2%). Rates increase if PAN is not provided by the deductee.
TDS is not applicable when: payment amount is below the threshold limit, payee submits Form 15G/15H (for low-income individuals/seniors), payee has a lower/nil deduction certificate under Section 197, or the transaction is between specified exempt entities.
If excess TDS is deducted, file your Income Tax Return (ITR) showing total income and TDS deducted (visible in Form 26AS). If tax liability is less than TDS, the difference is refunded to your bank account within 1-6 months of processing.
Form 26AS is your annual tax credit statement showing all TDS/TCS deducted against your PAN, advance tax paid, self-assessment tax, and refunds. It's available on the Income Tax e-filing portal and should be verified before filing ITR.