Enter the total payment amount on which TDS is applicable.
Enter the TDS percentage rate (e.g., 10 for 10%).
TDS regulations can be complex. Our experts can help ensure compliance and assist with tax planning.
Tax Deducted at Source (TDS) is a system introduced by the Income Tax Department of India, where the person or company responsible for making specified payments (like salary, commission, rent, interest, professional fees, etc.) is liable to deduct a certain percentage of tax before making the full payment to the recipient. The deducted tax is then remitted to the government on behalf of the recipient.
The primary purpose of TDS is to collect tax at the very source of income, ensuring a steady flow of revenue to the government and preventing tax evasion. The recipient of the income receives the net amount after the TDS deduction and can claim credit for the deducted amount when filing their income tax return.
This calculator provides a basic estimation. The core calculation is:
TDS Amount = Amount Subject to TDS × (TDS Rate / 100)
Actual TDS calculation depends heavily on the specific section of the Income Tax Act under which the payment falls, the nature of the payment, applicable thresholds (amounts below which TDS might not be required), and the PAN status of the recipient. Rates vary significantly (e.g., 1% for certain contract payments, 10% for professional fees or rent, 30% for lottery winnings, etc.).
Disclaimer: This calculator provides a simplified TDS estimation based only on the amount and rate entered. It does not account for specific TDS sections, thresholds, surcharge, cess, or PAN availability rules. Always refer to the latest Income Tax Act provisions and consult with a tax professional for accurate TDS calculations and compliance.