TDS Calculator
Calculate Tax Deducted at Source for various income types (FY 2024-25)
TDS Summary
TDS Calculation Breakdown
| Component | Details |
|---|---|
| Income Amount | ₹0 |
| TDS Section | - |
| Base TDS Rate | 0% |
| Surcharge | ₹0 |
| Cess (4%) | ₹0 |
| Total TDS | ₹0 |
| Threshold Status | - |
| TDS Certificate | - |
Understanding your tax obligations is a critical part of financial management. Tax Deducted at Source (TDS) is a key component of the Indian tax system, affecting various income types from salaries to professional fees. Our comprehensive TDS Calculator is designed to help you easily estimate the TDS amount applicable to your income for the financial year 2024-25, based on the latest tax rules.
This guide will walk you through how to use the calculator and explain the core principles of TDS on different income sources like salary, interest, rent, and professional fees, empowering you to manage your finances with clarity and confidence.
Author’s Note: This calculator provides an estimate based on the data you enter and current tax laws, which are subject to change. It is intended for informational purposes only and should not be considered as legal or tax advice. For personalized advice regarding your specific financial situation, it is always recommended to consult with a qualified chartered accountant or tax professional.
What is Tax Deducted at Source (TDS)?
TDS is a method of collecting income tax in India, where the tax is deducted at the time an income is generated, rather than at a later date. The person or company making the payment (the deductor) is responsible for deducting the tax before paying the recipient (the deductee) and depositing it with the government. The deductee can then claim credit for this deducted amount when filing their annual Income Tax Return (ITR).
How to Use the TDS Calculator
Our calculator simplifies TDS calculations across various income types. Follow these steps:
- Select the Income Type: Choose the source of your income, such as Salary (Section 192), Interest (Section 194A), Rent (Section 194I), or Professional Fees (Section 194J).
- Enter the Income Amount: Input the total income amount that is subject to TDS for the financial year.
- Provide Taxpayer Details: Specify your status (e.g., Individual, Company) and whether you are a Resident or Non-Resident, as rates can differ.
- Enter Your PAN Status: Indicate whether your PAN (Permanent Account Number) is available. This is crucial as the TDS rate is significantly higher if PAN is not provided.
- Calculate Your TDS: The tool will instantly compute the applicable TDS rate and the total tax amount to be deducted.
Understanding TDS on Different Income Types (FY 2024-25)
TDS rates and rules vary depending on the nature of the income. Here’s a breakdown for common sources:
- TDS on Salary (Section 192): Unlike other TDS sections with flat rates, TDS on salary is calculated based on the income tax slab rates applicable to the employee for that financial year. The employer estimates the employee’s total annual income, considers any declared deductions and exemptions, and then deducts the tax on a monthly basis. The TDS certificate for salary is provided in Form 16.
- TDS on Interest (Section 194A): For interest earned on fixed deposits or recurring deposits, the TDS rate is 10%. This is applicable if the annual interest income from a single bank or post office exceeds ₹40,000 (or ₹50,000 for senior citizens). For interest from other sources, the threshold is generally ₹5,000.
- TDS on Rent (Section 194I): If the total rent paid in a financial year exceeds ₹2,40,000, the tenant is required to deduct TDS. The rate is 10% for rent on land, buildings, or furniture, and 2% for rent on plant and machinery.
- TDS on Professional Fees (Section 194J): For payments made for professional or technical services, TDS is applicable if the total amount exceeds ₹30,000 in a financial year. The rate is 10% for professional services (like those of doctors, lawyers, or consultants) and 2% for technical services.
The Importance of PAN in TDS Calculation
Providing your PAN to the deductor is extremely important. As per Section 206AA of the Income Tax Act, if the PAN is not furnished, the TDS will be deducted at a much higher rate, which is typically 20%.
Frequently Asked Questions (FAQs)
What is TDS?
TDS stands for Tax Deducted at Source. It is a system where the government collects tax at the very source of income. The payer deducts tax before making the payment and deposits it with the government.
How is TDS on salary calculated?
TDS on salary is not a flat rate. It is calculated by your employer based on your estimated annual income and the income tax slab rates applicable to you for that financial year.
What happens if I don’t provide my PAN?
If you do not provide your PAN to the payer, TDS will be deducted at a higher rate, usually 20%, as mandated by Section 206AA of the Income Tax Act.
Can I claim a refund if excess TDS has been deducted?
Yes. If the total TDS deducted in a financial year is more than your actual tax liability, you can claim the excess amount as a refund when you file your Income Tax Return (ITR).