TDS Calculator

TDS (Tax Deducted at Source) is a mechanism under the Indian Income Tax Act, 1961, where the payer deducts tax at the time of making a payment and deposits it directly with the government on behalf of the payee. TDS applies to a wide range of payments including salary, professional fees, rent, interest, contractor payments, and more. Each type of payment has a specific TDS section (e.g. §194J for professional fees, §194I for rent) with a defined rate and threshold. The TDS calculator covers all major sections from §192 to §194S, helping you determine the correct TDS rate, TDS amount, and net payable for any payment type.

1. Select the TDS Section: Choose the applicable TDS section from the dropdown — the TDS calculator lists all major sections with their nature of payment (e.g. §194J for professional fees, §194C for contractors, §194I for rent). The default rate and threshold for the selected section are shown automatically.
2. Enter the Payment Amount and Payee Type:Input the gross payment amount in rupees and select whether the payee is a resident individual/HUF, resident company/firm, or non-resident. Click “Calculate TDS” — the TDS calculator runs entirely in your browser with no data sent to any server.
3. Review the Full TDS Breakdown:The TDS calculator shows the TDS rate, TDS amount, Health & Education Cess (4%), total deduction, and net amount payable to the payee. If the payment is below the threshold, the calculator confirms that no TDS is applicable.

• TDS Rate: The applicable TDS rate for the selected section and payee type, as prescribed under the Income Tax Act. Use the custom rate option to override for special cases or lower deduction certificates (Form 13).
• TDS Amount: The tax deducted at source, calculated as Gross Amount × TDS Rate ÷ 100. This amount must be deposited to the government by the 7th of the following month.
• Health & Education Cess: A 4% cess levied on the TDS amount (applicable for non-residents and in certain cases for residents). The TDS calculator shows this separately for full transparency.
• Net Amount Payable: The amount actually paid to the payee after deducting TDS and cess — this is what you transfer to the vendor, contractor, or service provider.

TDS must be deposited by the 7th of the following month (except for March deductions, which must be deposited by 30th April). TDS returns must be filed quarterly: Form 24Q for salary TDS, Form 26Q for non-salary payments to residents, and Form 27Q for payments to non-residents. After filing, issue a TDS certificate (Form 16 for salary, Form 16A for others) to the payee. Failure to deduct or deposit TDS attracts interest at 1% per month (for non-deduction) or 1.5% per month (for non-deposit), plus penalties. This TDS calculator is a planning tool — always verify rates with the latest CBDT circulars or a tax professional before making deductions.