TDS Calculator
Calculate TDS on salary, rent, professional fees, and interest payments based on the latest Income Tax rules.
Payment Details
Threshold is ₹50,000 for senior citizens.
Key Compliance Rules
Threshold Limits
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).
Lower Deduction
Deductees can apply for a certificate for lower or nil deduction under Section 197 if their total income is below the taxable limit.
Understanding TDS (Tax Deducted at Source)
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.
Deductor
The person or entity making the payment (e.g., an employer, a bank, or a client) who is responsible for deducting the tax.
Deductee
The person receiving the payment (e.g., an employee or a professional) whose tax is being deducted.
Common TDS Sections & Rates
| 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% |
Frequently Asked Questions
What is Form 26AS?
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).
What is the penalty for not deducting TDS?
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.
Can I get a refund of TDS?
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.
Is TDS applicable on salary?
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.