TDS Calculator – Calculate Tax Deducted at Source

What is TDS?

TDS (Tax Deducted at Source) is a system introduced by the Income Tax Department where the person making payment (deductor) deducts tax before making payment to the recipient (deductee). The deducted amount is then deposited with the government.

TDS Sections Covered

• Section 192: Salary – Based on income tax slabs
• Section 194A: Interest from banks, deposits – 10%
• Section 194I: Rent – 10%
• Section 194J: Professional/Technical fees – 10%
• Section 194C: Contractor payments – 1-2%
• Section 194H: Commission – 5%

Important Thresholds

TDS is applicable only when payments exceed specified limits:

• Interest: ₹40,000 (₹50,000 for senior citizens)
• Rent: ₹2,40,000 per year
• Professional Fees: ₹30,000 per year
• Contractor: ₹30,000 per single payment or ₹1,00,000 aggregate
• Commission: ₹15,000 per year

Impact of PAN

PAN (Permanent Account Number) is crucial for TDS:

• With PAN: Normal TDS rates apply
• Without PAN: TDS at 20% or double the rate (whichever is higher)
• Always provide PAN to avoid higher deductions
• Check Form 26AS for TDS credits

How to Claim TDS Refund

If excess TDS has been deducted:

• File your Income Tax Return (ITR)
• Show actual tax liability vs TDS deducted
• Refund processed after assessment
• Check refund status on IT portal
• Ensure bank account is pre-validated

Benefits of Using ToolsGen TDS Calculator

✔ Covers all major TDS sections
✔ Accurate calculations based on latest rules
✔ Visual pie chart representation
✔ User-friendly interface
✔ Works on mobile and desktop
✔ Completely free to use

Who Should Use This Calculator?

• Salaried employees checking TDS on salary
• Individuals with interest income from banks
• Landlords receiving rent above threshold
• Freelancers and professionals
• Contractors and commission agents
• Finance and accounting professionals