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Calculate TDS on salary, rent, professional fees, and interest payments based on the latest Income Tax rules.
Threshold is ₹50,000 for senior citizens.
TDS is only applicable if the total payment to a person in a financial year exceeds the threshold (e.g., ₹30,000 for Professional Fees).
Deductees can apply for a certificate for lower or nil deduction under Section 197 if their total income is below the taxable limit.
TDS is a mechanism introduced by the Income Tax Department where the person responsible for making specified payments is required to deduct tax at source and deposit it into the Government's account.
The person or entity making the payment (e.g., an employer, a bank, or a client) who is responsible for deducting the tax.
The person receiving the payment (e.g., an employee or a professional) whose tax is being deducted.
| Section | Nature of Payment | Threshold | Rate |
|---|---|---|---|
| 194A | Bank Interest | ₹40,000 | 10% |
| 194C | Contractors | ₹30,000 | 1% / 2% |
| 194-I | Rent (Building) | ₹2,40,000 | 10% |
| 194J | Professional Fees | ₹30,000 | 10% |
| 194H | Commission | ₹15,000 | 5% |
Form 26AS is a consolidated tax statement that shows details of tax deducted at source (TDS) from your income by various deductors. It is essential for filing your Income Tax Return (ITR).
If a person fails to deduct TDS, they may be liable to pay interest at 1% per month from the date on which tax was deductible to the date on which it is actually deducted.
Yes, if the total TDS deducted is more than your actual tax liability for the financial year, you can claim a refund by filing your Income Tax Return.
Yes, under Section 192, employers deduct TDS from salary based on the average rate of income tax applicable to the employee's estimated income for the year.