Taxation
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TDS Calculator
Check the tax deducted at source on salary, interest or contract income. Adjust any input below and your results update instantly.
Understanding TDS
The concept, the motivation, and what to watch out for.
Tax withheld before it ever reaches you
TDS (Tax Deducted at Source) is how the government collects tax as income is paid, rather than waiting for you to file months later. Whoever pays you — an employer, a bank, a client — withholds a percentage and deposits it with the government on your behalf, before you see the rest.
Each type of payment has its own section, rate, and exemption threshold. This calculator covers the most common ones: salary, interest, professional/technical fees, contractor payments, rent, and commission.
Thresholds are a cliff, not a slab
Unlike income tax slabs, most TDS thresholds are all-or-nothing — cross it, and TDS applies to the entire payment, not just the amount above the threshold.
No PAN means a much higher rate
Section 206AA forces a minimum 20% TDS rate if the payee hasn't furnished a valid PAN — often far higher than the section's normal rate.
How this calculator helps
Pick the type of payment, enter the amount, and see exactly whether TDS applies, at what rate, and how much gets withheld.
Check your TDS
Fill in the starred fields on the left — your results update instantly on the right.
Your details
e.g. Professional/technical fees
PAN provided
Off applies Section 206AA's 20% floor.
Technical service (not professional)
Switches the rate from 10% to 2%.
e.g. ₹80,000 for the year
These are example numbers. Edit any input on the left to see your own.
TDS withheld from this payment
₹8,000
10% — Section 194J
Payment amount
₹80,000
Net payment
₹72,000
₹8,000 is withheld at 10% — the payee receives ₹72,000.
Compare scenarios
See how PAN status or a larger payment would change the TDS withheld.
Your plan
PAN provided
₹8,000
TDS amount
Baseline
Without PAN
Section 206AA
₹16,000
TDS amount
More TDS
Payment ×2
₹1.60 L
₹16,000
TDS amount
Same rate applies
Worked example, using your numbers
A step-by-step walkthrough for professional/technical fees (Section 194J).
Step 1 · Threshold check
Your payment against the Section 194J threshold of ₹50,000 —
Exceeds it
Step 2 · Applicable rate
With a valid PAN on file, the rate is
10%
Step 3 · TDS withheld
Applying that rate to the full payment gives
₹8,000
✓
TDS of ₹8,000 is withheld at 10% — the payee receives ₹72,000 net.
Personalised insights
What your numbers reveal, and what changing them would do.
TDS applies — ₹8,000 withheld at 10%
Your ₹80,000 payment exceeds the ₹50,000 threshold for Professional/technical fees (Section 194J).
Net payment after TDS: ₹72,000
Out of ₹80,000, ₹8,000 is withheld and deposited with the government — the payee receives the rest.
PAN is on file — the standard rate applies
Without a valid PAN, Section 206AA would push this to at least 20%.
Doubling the payment doesn't double the rate
At ₹1.60 L, the same 10% rate still applies — only the threshold check (crossed once, either way) actually changes anything.
How this is calculated
Every step of the math behind your result, shown in the open.
TDS on salary — Section 192
Remaining Tax = your estimated annual tax not yet withheld, Months Left = payroll cycles remaining in the year, Monthly TDS = this month's deduction
Salary doesn't have a flat TDS rate — employers spread your remaining estimated tax evenly across the payroll months left in the year, recalculating each month as both figures change.
Example: Salary uses monthly spreading instead — see the Section 192 card for that formula
Does TDS apply at all?
Payment = the amount paid or credited, Threshold = that section's exemption limit, Applicable = whether TDS is deducted at all
Every non-salary section here has its own threshold — payments at or below it need no TDS at all. Cross it, and the entire payment (not just the excess) becomes subject to TDS.
Example: ₹80,000 > ₹50,000 threshold → TDS applies
TDS amount
Payment = the amount paid or credited, r = the applicable rate for that section, TDS = tax deducted at source
Once a payment crosses its threshold, TDS is deducted at that section's rate — the payer withholds this amount and deposits it with the government on the payee's behalf.
Example: ₹80,000 × 10% → ₹8,000 TDS
No PAN penalty — Section 206AA
r = the section's normal rate, r_final = the rate actually applied
Section 206AA overrides every section above: if the payee hasn't furnished a valid PAN, the deductor must withhold at least 20% — even where the normal rate is much lower, like a contractor's 1–2%.
Example: PAN provided → standard 10% rate applies
Assumptions
- This covers six common sections — salary (192), interest (194A), professional/technical fees (194J), contractor payments (194C), rent (194-I), and commission (194H). Property purchases (194-IA), individual rent (194-IB), and e-commerce/goods purchases (194-O/194Q) aren't modeled.
- Section 194C's ₹1,00,000 threshold is treated as an annual aggregate only — a single payment over ₹30,000 also triggers TDS even if the yearly total stays lower, which isn't modeled here.
- A lower or nil-rate certificate under Section 197 isn't modeled — this always applies the standard rate for the selected section.
- Figures are indicative only — not tax advice. Consult a chartered accountant for your actual TDS obligations.
Did you know?
A few facts behind India's TDS rules.
20%
No PAN can cost you 10x the normal rate
A contractor payment normally attracts just 1–2% TDS — but without a PAN on file, Section 206AA pushes that up to a flat 20%.
194C
The same contractor payment, two different rates
Section 194C charges 1% when the payee is an individual or HUF, and 2% for every other kind of contractor — companies, firms, and the rest.
₹6L
Rent's threshold jumped 2.5x in Budget 2025
The annual rent threshold for TDS rose from ₹2,40,000 to ₹6,00,000 — equivalent to ₹50,000 a month — sparing many smaller tenancies from TDS entirely.
2%
Commission TDS was cut by more than half
Budget 2024 dropped the Section 194H rate on commission and brokerage from 5% to 2%, effective October 2024.
Cliff
One rupee over the threshold changes everything
Most TDS thresholds aren't marginal like income tax slabs — cross one by even ₹1, and TDS applies to the full payment, not just the amount past the threshold.
Frequently asked questions
Straight answers to the questions we hear most about TDS.
What is TDS and why does it exist?
Tax Deducted at Source requires whoever is paying you — an employer, bank, or client — to withhold a percentage and deposit it with the government upfront, rather than the tax authority waiting for you to pay everything at filing.
What happens if a payment is exactly at the threshold?
No TDS applies — the payment has to exceed the threshold, not just reach it. A ₹50,000 professional fee (exactly at the Section 194J threshold) attracts no TDS; ₹50,001 does, on the full amount.
What if the payee doesn't have a PAN?
Section 206AA forces a minimum 20% TDS rate, regardless of what the section would normally charge — often several times higher than the standard rate.
Does salary TDS work the same way as the other sections?
No — salary has no flat rate or threshold. Your employer estimates your annual tax liability and spreads whatever's left over the payroll months remaining in the year, adjusting the monthly figure as your income or investment declarations change.
Can I get back TDS that was deducted?
Yes — TDS is a credit against your final tax liability, not an extra charge. If your actual tax liability for the year is lower than the TDS withheld, you claim the difference as a refund when you file your return, using the credit reflected in Form 26AS.
Does this cover every TDS section?
No — this covers the six most common everyday sections. Others, like TDS on property purchases (194-IA), rent by individuals not subject to audit (194-IB), or e-commerce/goods purchases (194-O/194Q), aren't modeled here.
Is this tax advice?
No. This tool provides indicative estimates based on your inputs and the rates in force at the time. Consult a chartered accountant for your actual TDS obligations.
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Learn more
Articles to go deeper on the ideas behind this calculator.
Fundamentals
TDS thresholds are a cliff, not a slab
Why crossing a threshold by ₹1 changes the whole calculation.
5 min read
Fundamentals
How to claim back TDS at filing time
Form 26AS, TDS credit, and getting your refund.
6 min read
Reference
TDS sections this calculator doesn't cover
Property purchases, e-commerce, and other specialised sections.
5 min read