TDS Calculator
Tax Deducted at Source (TDS) is the tax your payer withholds before releasing a payment and deposits with the government against your PAN. It applies to professional fees, rent, contractor bills, commission, interest and more, each at its own rate. This TDS calculator shows how much will be deducted from a given payment and the net amount you actually receive, so you can plan cash flow and know exactly how much credit to claim when you file your return.
TDS Deducted
₹10,000
Net Amount Received
₹90,000
About the TDS Calculator
TDS is a mechanism under the Income-Tax Act by which tax is collected at the point of payment rather than at year-end. The payer deducts a fixed percentage, deposits it with the government, and issues a certificate (Form 16A) that reflects in your Form 26AS and Annual Information Statement.
Why it is useful
Knowing the TDS in advance tells you the real amount that will land in your account and prevents surprises on large invoices or rent. It also lets you check whether the deductor has applied the correct section and rate, and how much tax credit you can set off against your final liability.
How the calculation works
TDS is worked out as TDS = payment × applicable rate, and the net you receive is payment − TDS. The rate depends on the payment: 10% on professional or technical fees under Section 194J, 1% (individuals/HUF) or 2% (others) on contractor payments under Section 194C, and 10% on rent of land or building under Section 194I. If you have not furnished your PAN, TDS is deducted at a higher rate, usually 20%.
Key inputs explained
- Payment amount: The gross amount being paid before any tax is deducted.
- Nature of payment: Whether it is professional fees (194J), contractor payment (194C), rent (194I) or interest, which sets the rate.
- Applicable TDS rate: The percentage prescribed for that section under the Income-Tax Act.
- PAN available: Whether the payee's PAN is on record, since its absence raises the rate to 20% under Section 206AA.
Example calculation
Inputs
- Payment amount
- ₹1,00,000
- Section
- 194J (professional fees)
- TDS rate
- 10%
Calculation breakdown
- TDS = payment × rate
- 1,00,000 × 10%
- TDS amount
- ₹10,000
- Net = payment − TDS
- 1,00,000 − 10,000
The client deposits ₹10,000 with the government against the consultant's PAN and pays out ₹90,000. The consultant later claims the ₹10,000 as TDS credit while filing the return, reducing the final tax payable or generating a refund.
Benefits
- Know the exact net amount before you issue or accept an invoice.
- Verify that the payer has used the right section and TDS rate.
- Estimate the tax credit you can claim to reduce your final liability.
Limitations
- Uses standard section rates; surcharge on very large payments is not applied.
- Does not account for lower or nil-deduction certificates under Section 197.
- Threshold limits below which no TDS applies vary by section and are not auto-checked.
Tips
- Always share your PAN with the deductor to avoid the higher 20% rate.
- If your income is below the taxable limit, submit Form 15G (or 15H for seniors) to stop deduction on interest.
- Reconcile deducted TDS with your Form 26AS and AIS before filing to claim full credit.
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About this calculator
The TDS Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.