TDS Calculator India 2026 Latest Rates
Calculate TDS (Tax Deducted at Source) instantly for FY 2025-26 as per CBDT & Income Tax Department rules. Works for Salary, Contractor, Rent, Property, Interest & all sections.
What is TDS (Tax Deducted at Source)?
TDS is a means of collecting income tax in India, under the Indian Income Tax Act of 1961. Any payment covered under these provisions shall be paid after deducting a prescribed percentage. It is managed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue managed by the Indian Revenue Service (IRS).
The person making the payment (deductor) is responsible for deducting the tax and depositing it with the government. The person receiving the payment (deductee) can claim credit for the TDS amount based on Form 26AS or TDS certificate issued by the deductor.
Key Benefit: It ensures a steady flow of revenue to the government and spreads the tax collection throughout the year.
How to Calculate TDS?
- Identify applicable TDS section
- Check threshold limit
- Apply correct TDS rate (PAN/No PAN)
- Calculate: TDS = Amount × Rate/100
- Deposit by due date
- Consider special conditions like surcharge, education cess, and specific exemptions This calculator automates all these steps for you based on the latest Income Tax Department rules.
When TDS is NOT Applicable?
- Below threshold limits: When payment amount is below the specified threshold for that section.
- Form 15G/15H submitted: When recipient submits Form 15G (for individuals below taxable limit) or Form 15H (for senior citizens).
- Government/RBI payments: Payments made to the government, Reserve Bank of India, or specified institutions.
- Lower TDS certificate (Sec 197): When a lower TDS certificate is obtained from the Income Tax Department.
- Certain exempt incomes: Certain payments like interest on post office savings, NSC, etc.
- Payments to non-residents without permanent establishment: In some specific cases as per Double Taxation Avoidance Agreements.
- Payments between certain entities: Inter-bank transactions, payments to mutual funds, etc.
What is Full Form of TDS?
TDS = Tax Deducted at Source
Tax collected by payer at source of income and deposited directly to Income Tax Dept. Appears in Form 26AS for credit while filing ITR.
TDS is a means of collecting income tax in India, under the Indian Income Tax Act of 1961. Any payment covered under these provisions shall be paid after deducting a prescribed percentage. It is managed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue managed by the Indian Revenue Service (IRS).
The person making the payment (deductor) is responsible for deducting the tax and depositing it with the government. The person receiving the payment (deductee) can claim credit for the TDS amount based on Form 26AS or TDS certificate issued by the deductor.
Key Benefit: It ensures a steady flow of revenue to the government and spreads the tax collection throughout the year.
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How to Use the TDS Calculator to Calculate TDS on Salary
Calculating TDS on your salary is not a big headache anymore. Just go to the tds calculator on this page, enter your total annual income, pick the tax regime – old or new – and add all deductions like HRA, investments under 80C. It will show the average tax rate and how much TDS to cut each month. For example, if your salary is 10 lakh, minus exemptions, it figures out the slab and deducts accordingly. Simple steps: put details, click calculate, done! No need for pen-paper math. This tds calculator makes it quick for salaried folks in India.
- Select the nature of payment (salary, rent, professional fees, interest, etc.)
- Choose the applicable TDS section (e.g., 194C, 194J, 194I)
- Enter the payment amount
- Specify PAN availability of the deductee
- Select residential status (Resident / Non‑Resident, if applicable)
- Click on Calculate TDS
The tool will instantly show:
- Applicable TDS rate
- TDS amount to be deducted
- Net amount payable
Sample TDS Calculations
Example 1: Professional Fees
- Amount paid: ₹50,000
- Section: 194J
- PAN available: Yes
- TDS rate: 10%
- TDS deducted: ₹5,000
- Net payment: ₹45,000
Example 2: Rent Payment
- Monthly rent: ₹60,000
- Section: 194I
- Annual rent exceeds threshold
- TDS rate: 10%
- TDS per month: ₹6,000
Common Mistakes to Avoid While Calculating TDS
- Selecting the wrong TDS section
- Ignoring threshold exemption limits
- Not considering higher TDS due to non‑availability of PAN
- Applying incorrect residential status
- Forgetting surcharge and cess (where applicable)
Avoiding these errors ensures accurate tax compliance.
Explanation of Common TDS Sections
Section 194C – Contract Payments
Applicable for payments to contractors or subcontractors. TDS rates depend on whether the payee is an individual/HUF or others.
Section 194J – Professional or Technical Fees
Applicable for payments such as legal fees, consultancy charges, audit fees, and technical services.
Section 194I – Rent
Applicable on rent paid for land, building, machinery, or equipment exceeding the prescribed threshold.
Section 194A – Interest (Other than Securities)
Applicable on interest paid by banks, financial institutions, or others, subject to threshold limits.
⚠️ Note: If PAN is not provided, TDS is generally deducted at a higher rate as per Section 206AA.
TDS Computation – Calculate TDS Online with Ease
TDS computation sounds complicated, but online it’s super easy. Use the tds calculator here – just input payment type like salary or rent, amount, and PAN details. It applies the right rate, checks thresholds, adds cess if needed, and gives exact TDS amount. No mistakes in slabs or surcharges. For salary, it takes estimated yearly income, divides tax by 12 for monthly cut. Everything as per Income Tax rules. Saves time, avoids errors. Perfect for employers or freelancers in daily work.
Calculation of Interest on TDS & Penalties
If you delay TDS payment, interest and penalties add up fast. For late deduction, it’s 1% per month from due date. Late deposit? 1.5% monthly on the amount. Penalties like Rs 200 per day for late filing, up to TDS amount. Use a tds calculator to avoid this – it reminds due dates. For example, if TDS is Rs 10,000 late by 2 months, interest is Rs 300. Government charges under Section 201. Better deposit on time via challan to skip fines. Simple rule: deduct and pay monthly.
TDS Calculation on Monthly Salary & CTC Salaries TDS Calculation
For monthly salary, TDS is based on your full year estimate. Take CTC – that’s total cost to company, including allowances. Subtract exemptions like basic, HRA from gross, apply slabs. Monthly TDS = total tax / 12. For example, if CTC is 12 lakh, net taxable 8 lakh, tax Rs 50,000, monthly cut Rs 4,167. Use tds calculator to break it down easily. It handles old/new regime differences. No confusion on PF or bonuses. Ideal for Indian employees checking payslips.
Knowing TDS calculation on monthly salary with tds calculator
TDS on monthly salary is simple – your boss estimates your full year income, subtracts exemptions like HRA, standard deduction, 80C investments, then applies tax slabs to find total tax. After that, divide by 12 for monthly cut. For example, if yearly taxable is 8 lakh, tax around 50k, monthly TDS about 4k. No fixed rate, it changes with your earnings. Use the tds calculator here to put your details and see exact monthly deduction quickly, no math tension.
TDS Calculator for Deduction of TDS on Salary & Other Payments
This tds calculator is great for deducting TDS on salary plus other stuff like rent, contractor fees, interest. Enter payment type, amount over threshold – say rent above 50k monthly needs 5% TDS. For salary, add annual earnings, deductions. It covers all sections: 192 for salary, 194C for contractors. Handles PAN absence with higher 20% rate. Quick output with cess. Useful for businesses or landlords in India to stay law friendly without hassle.
Tax deducted at source on salary
Tax deducted at source on salary means your employer cuts tax directly from your pay and sends to government under Section 192. It’s not flat rate, based on your total estimated salary income and slabs. If income below basic exemption, no cut. This way government gets tax regularly, you get credit later in ITR. Handy for salaried people. Try our tds calculator to check how much gets deducted from your salary each month, super easy and accurate.
Why You Should Use an Online TDS Calculator
Why to bother with manual calculations when online tds calculator is free and fast? It gives accurate TDS without errors, updates with latest tax rules automatically. Saves hours, especially for multiple payments. Check salary TDS or rent in seconds, download reports. Avoids penalties by showing exact amounts. For Indians, it’s like a helper for tax compliance – no need to remember slabs or rates. Convenient on mobile too. Makes life easier for everyone.
FAQs
1. What is the minimum salary for TDS deduction?
TDS on salary starts only if annual income exceeds Rs 2.5 lakh (old regime) or Rs 3 lakh (new regime) for FY 2025-26. Below that, no deduction. Use a tds calculator to enter your salary and deductions – it quickly shows if TDS applies and monthly amount.
2. Why is TDS deducted?
TDS is deducted to collect tax in advance regularly, so government gets money steadily. For salary, employer cuts it monthly. An free online tds calculations helps you see exact deduction based on your income without any confusion.
3. Who deducts TDS on salary?
Your employer deducts TDS on salary under Section 192. They estimate yearly tax and cut monthly. Use a tds calculator here to check the correct amount by adding your details easily.
4. How to check TDS amount deducted?
Check Form 26AS on Income Tax portal – it shows all deducted TDS. Compare with Form 16. A tds calculation lets you estimate what should be cut and match it fast.
5. What happens if TDS is not deducted?
If TDS isn’t deducted properly, deductor pays interest (1-1.5% monthly) and penalties. Use tds calculator before payments to know exact TDS and avoid such troubles.
6. What are the TDS rates for various payments?
Rates vary: 10% on salary/interest, 5% on rent (above Rs 50k/month), 2% on contractors. Without PAN, 20%. A tds computation calculator applies correct rates instantly for any payment type.
7. How to file TDS returns?
File quarterly via 24Q (salary) or 26Q on e-filing portal by due dates. Verify amounts first – it ensures accurate figures for smooth filing.
8. How does a TDS calculator help?
A tds calculator computes exact TDS quickly, follows latest rules, avoids errors, and works for salary or other payments. Free and simple tool that saves time and penalties.
9. When will my TDS be refunded?
TDS refund is processed along with your Income Tax Return (ITR) refund. If the TDS deducted is more than your total tax liability, the excess amount will be refunded by the Income Tax Department after processing your ITR. You can track refund status on the e-filing portal using your PAN.