Gross Payment Amount
₹ 50,000.00
Threshold Limit
₹ 30,000.00
Applicable TDS Rate
10.00%
TDS Deducted Amount
₹ 5,000.00
Net Amount Payable to Recipient
₹ 45,000.00
About the TDS (Tax Deducted at Source) Calculator
Our free TDS Calculator helps individuals, businesses, and deductors compute the correct Tax Deducted at Source under Indian income tax provisions for various payments such as professional fees, rent, contracts, interest, and commissions.
How TDS is Calculated and Applied
Under the Income Tax Act, persons making specified payments must deduct tax at source if the payment exceeds statutory financial year threshold limits:
$$\text{TDS Amount} = \text{Gross Payment} \times \left(\frac{\text{Applicable TDS Rate (\%)}}{100}\right)$$
$$\text{Net Amount Payable} = \text{Gross Payment} - \text{TDS Amount}$$
Note on PAN Availability: If the recipient fails to furnish a valid Permanent Account Number (PAN), tax must be deducted at a higher rate of 20% under Section 206AA, regardless of standard section rates.
How to Use the Calculator
Simply enter your payment details:
- Payment Amount: The gross transaction or invoice amount.
- Nature of Payment & Recipient Category: Select the correct section (e.g., Sec 194J for professional fees or Sec 194I for rent) and entity type.
- PAN Status: Indicate whether a valid PAN is available to account for potential 20% penal deductions.
Click the Calculate TDS button to instantly view your gross payment, applicable threshold limit, tax rate, tax deduction amount, and net payable balance.
Frequently Asked Questions (FAQs)
What is the penalty for not deducting or depositing TDS?
Failing to deduct TDS or depositing it late to the government attracts statutory interest ranging from 1% to 1.5% per month, along with potential penalties and disallowance of business expenses during tax audits.
Can a recipient claim a refund for excess TDS deducted?
Yes, recipients can claim credit for all TDS deducted against their final tax liability when filing their annual Income Tax Return (ITR), and any excess tax is refunded by the Income Tax Department.
What is Form 16/16A in relation to TDS?
Form 16 (for salary) and Form 16A (for non-salary payments) are official certificates issued by the deductor showing details of tax deducted and deposited on behalf of the recipient.
