What is a TDS calculator?
A TDS (Tax Deducted at Source) calculator estimates how much tax a payer must deduct before releasing certain payments to a resident. TDS applies to categories such as salary, interest, rent, professional fees, contractor bills, dividends, and e-commerce settlements under specified sections of the Income Tax Act.
The deductor deposits the withheld tax with the government; the payee receives credit through Form 26AS and can set it off while filing an income tax return. This tool helps payers and recipients quickly check whether TDS applies and at what rate for common payment types.
When do you need a TDS calculator?
If you pay rent, professional fees, contractor invoices, or other specified income, you may be required to deduct TDS when thresholds are crossed. Recipients can use the same tool to verify whether the deduction on their payment looks reasonable.
- Estimate TDS before paying a freelancer or consultant under Section 194J.
- Check contractor TDS on a single bill or FY aggregate under Section 194C.
- Verify rent TDS on plant, machinery, or building payments under Section 194I or 194IB.
- See the impact of a missing PAN when Section 206AA triggers a higher rate.
How does this TDS calculator work?
Select the nature of payment, recipient category (individual/HUF versus others), whether a valid PAN is available, and the payment amount. The calculator applies the section rate when the amount exceeds the threshold for that payment type.
If PAN is not furnished, Section 206AA generally requires deduction at 20% or the section rate, whichever is higher. Some low-rate sections such as 194O use a specific no-PAN rate instead.
TDS = Payment amount × Applicable rate / 100
Where –
| Payment amount | Gross amount credited or paid before TDS |
|---|---|
| Applicable rate | Section rate based on payment type, recipient, and PAN status |
| Threshold | Minimum amount above which TDS must be deducted for that section |
TDS is not deducted when the payment does not exceed the section threshold.
Worked example
Professional fees of ₹1,00,000 to an individual with PAN under Section 194J(b): rate 10%, TDS = ₹10,000, net payment = ₹90,000. A contractor payment of ₹25,000 in a single transaction stays below the ₹30,000 Section 194C threshold, so no TDS is deducted.
How to use this TDS calculator
Choose recipient type and PAN availability, pick the payment section that matches your transaction, enter the payment amount, and read total TDS, applicable rate, and net payment. Use shareable links to send the same inputs to a colleague or accountant.
Compare invoicing tax with the GST calculator. For salary withholding and in-hand pay, use the salary calculator.
What this calculator does not include
Salary TDS under Section 192 (slab-based average rate), lower-deduction certificates under Section 197, DTAA rates for non-residents, surcharge, cess, GST treatment on invoices, quarterly deposit deadlines, and every CBDT notification are not modeled. Rates reflect common FY 2025-26 rules and may change with future Finance Acts.
Frequently asked questions
What is TDS?
Tax Deducted at Source is tax withheld by the payer when making specified payments. The deductor remits it to the government and issues a TDS certificate to the payee.
What happens if PAN is not provided?
Under Section 206AA, TDS is generally deducted at 20% or the normal section rate, whichever is higher. Always collect and verify PAN before making payments subject to TDS.
Does this calculator cover salary TDS?
No. Salary TDS under Section 192 uses estimated annual income and slab rates, which require payroll context. This tool covers common non-salary sections such as 194C, 194H, 194I, 194J, and 194A.
Are the rates updated for recent Budget changes?
The calculator uses widely cited FY 2025-26 rates and thresholds, including rationalised rates for commission, rent, and professional fees. Confirm the latest CBDT circulars before deducting or filing returns.