TDS Calculator
Work out how much tax to deduct at source before making a payment. Pick the section, enter the amount, and the calculator applies the right rate and threshold.
TDS rate
10%
Section 194J
TDS to deduct
₹20,000
Net payment to make
₹1,80,000
Threshold for this section: 50,000 in the year (2% for technical services and call centres). Rates are for resident payees for FY 2025-26. Payments to non-residents fall under Section 195 with different rates and surcharge. This is an estimate, not tax advice.
Frequently Asked Questions
What is TDS?
Tax Deducted at Source: the payer withholds a percentage of certain payments and deposits it with the government against the recipient's tax liability. The recipient claims it as credit when filing their return.
What happens if the payee has no PAN?
Section 206AA requires deduction at the higher of 20% or the normal rate. For a 1% contractor payment that means twenty times the usual deduction, so always collect the PAN first.
When must TDS be deposited?
By the 7th of the following month, except for March deductions which are due by 30 April. Late deposit attracts 1.5% interest per month, and late deduction 1% per month.
Do individuals have to deduct TDS?
Usually only if their business was subject to tax audit in the previous year. Two exceptions apply to everyone: Section 194IB on rent above ₹50,000 a month, and Section 194IA on property purchases above ₹50 lakh.
Can the payee avoid TDS?
Yes, by filing Form 15G (or 15H for senior citizens) where total income is below the taxable limit, or by obtaining a lower or nil deduction certificate from the assessing officer under Section 197.