TDS Calculator India

TDS — Tax Deducted at Source — is income tax deducted by the payer (deductor) at the time of making certain payments, and deposited with the government on behalf of the recipient (deductee).

The recipient claims this amount as tax already paid in their income tax return (visible in Form 26AS / AIS). It's a way for the government to collect tax in real-time rather than waiting for self-assessment.

Section 194C applies to payments to contractors and sub-contractors:

• 1% if the contractor is an Individual or HUF
• 2% for any other entity (company, partnership firm, LLP)

Threshold: ₹30,000 per single payment or ₹1,00,000 aggregate per FY. Once the threshold is crossed, TDS applies to the entire payment, not just the excess.

Section 194J:

• 10% on professional services — CA, lawyer, doctor, architect, freelance consultant, designer, etc.
• 2% on technical services, royalty for cinematographic films, and call-centre operators.

Threshold: ₹30,000 per nature of payment per FY per deductee. If the payment is for both professional and technical services, the higher rate (10%) generally applies unless clearly bifurcated.

Section 194I (most businesses, audit-liable individuals):

• 10% on rent for land, building, furniture, fittings.
• 2% on rent for plant, machinery, equipment.
• Threshold: ₹2,40,000 per FY per landlord.

Section 194IB (individuals/HUF not under tax audit):

• 5% on rent if monthly rent exceeds ₹50,000.
• TDS is deducted only once a year — on the last month's rent (or the last month of tenancy if leaving mid-year).

Section 194IA: when buying immovable property (other than agricultural land) for ₹50,00,000 or more, the buyer must deduct 1% TDS on the entire sale value (not just the amount above ₹50L) and deposit it via Form 26QB.

TDS is deducted at the time of credit of payment to the seller or at the time of payment, whichever is earlier. For installment payments, deduct 1% on each installment.

Section 206AA: if the deductee fails to furnish their PAN, TDS is deducted at the higher of:

• the rate specified in the relevant TDS section, OR
• the rate in force, OR
• 20%.

Special cases: Section 194Q and 194O cap the no-PAN rate at 5%. Always collect a copy of the deductee's PAN before processing payment to avoid the higher rate.

Deposit deadline: by the 7th of the next month (e.g., TDS deducted in May must be deposited by 7th June). TDS deducted in March must be deposited by 30th April.

Quarterly TDS returns:

• Form 24Q — salary TDS
• Form 26Q — non-salary TDS to residents
• Form 27Q — payments to non-residents
• Form 26QB — one-time return for property TDS (194IA)

Late deposit attracts 1.5% interest per month, and late filing of return attracts a fee of ₹200 per day under Section 234E. Penalties under Section 271H may apply for non-filing.

The deductor files quarterly returns; the TDS amount automatically appears in the deductee's Form 26AS and Annual Information Statement (AIS) on the income tax portal.

While filing the income tax return (ITR), the deductee enters the TDS amount and the deductor's TAN; the system reconciles against Form 26AS. If the actual tax liability is less than TDS deducted, the difference is refunded.