TDS Calculator: Calculate Tax Deducted at Source Online
What is TDS?
TDS (Tax Deducted at Source) is a method of collecting income tax in India where the payer deducts a certain percentage of tax before making payment to the recipient. This system ensures regular flow of tax revenue to the government and helps track financial transactions.
Common TDS Rates and Sections
| Payment Type | TDS Section | TDS Rate | Threshold Limit |
|---|---|---|---|
| Salary | 192 | As per slab rate | ₹2.5 Lakh p.a. |
| Interest on Securities | 193 | 10% | ₹5,000 p.a. |
| Rent for Property | 194I | 10% | ₹2.4 Lakh p.a. |
| Professional Fees | 194J | 10% | ₹30,000 p.a. |
Source: Income Tax India, ClearTax
Important Notes:
- Higher TDS rate (20%) applies if PAN is not provided
- TDS must be deposited by 7th of the next month
- Late deposit attracts interest penalty of 1.5% per month
- TDS certificates (Form 16/16A) must be issued quarterly
Useful Resources:
- Income Tax Portal - File returns, check forms, and more
- TRACES Portal - Download forms, check challans
- Link Aadhaar - Link your PAN with Aadhaar
1. Calculate TDS
Determine the applicable TDS rate and calculate the deduction amount
2. Deposit TDS
Deposit the deducted amount with the government by due date
3. File Returns
File quarterly TDS returns and issue certificates
Frequently Asked Questions
How is TDS calculated on salary?
TDS on salary is calculated based on the estimated annual income and applicable income tax slab rates. The employer considers declared investments and deductions to determine the monthly TDS amount.
What happens if TDS is not deducted?
Failure to deduct TDS can result in penalties under section 271C, equal to the amount of TDS not deducted. Additionally, interest charges apply under section 201(1A).
Can I claim refund of excess TDS?
Yes, excess TDS can be claimed as refund while filing your income tax return. The refund will be processed after verification of your return.
When should TDS be deposited?
TDS must be deposited with the government by the 7th of the following month. For March (end of financial year), the due date is 30th April.
How can I check my TDS status?
You can check your TDS status in Form 26AS through the income tax portal or your bank's net banking facility. It shows all TDS deductions made from your income.