TDS Calculator

TDS is calculated by identifying the nature of payment (section under Income Tax Act), verifying if the aggregate payments exceed the specified threshold limit, determining the payee category, checking if a valid PAN is available, and applying the applicable tax rate to the gross payment amount.

If the payee fails to furnish a valid Permanent Account Number (PAN), the deductor is required to deduct TDS at a higher rate under Section 206AA. This rate is generally a flat 20% (except for certain specific transactions where other rules may apply).

The threshold limit is the exemption limit below which no TDS needs to be deducted. If the total payment in a financial year is below the threshold, TDS is 0%. However, once the aggregate payment exceeds the threshold, TDS is deducted on the total amount paid, not just the portion exceeding the threshold.

Under Section 194C, TDS is deducted at 1% if the contractor/payee is an Individual or HUF, and at 2% for other entities (like companies, partnership firms). The threshold limit is ₹30,000 for a single transaction or ₹1,00,000 in aggregate during the financial year.

Under Section 194J, TDS on professional services and director fees is deducted at 10%. For technical services, royalties, or call center services, the rate is 2%. The threshold limit for professional and technical services is ₹50,000 per financial year for FY 2025-26.

Under Section 194I (for business/audited entities), TDS is 2% on machinery/equipment and 10% on land/building if the annual rent exceeds ₹6,00,000. Under Section 194-IB (for non-audited individuals/HUFs), TDS is 2% if the monthly rent exceeds ₹50,000.

Yes, under Section 194A, banks and post offices deduct TDS on interest (like FD/RD interest) at 10%. The threshold limit is ₹50,000 per financial year for general individuals and ₹1,00,000 for senior citizens. For other payers, the threshold is ₹10,000.

Under Section 194-IA, when purchasing immovable property (other than agricultural land) worth ₹50,000,000 or more, the buyer must deduct TDS at 1% of the total purchase consideration. This applies to both individual transactions and installments.

If the TDS deducted is more than your actual tax liability, you can claim a refund by filing your Income Tax Return (ITR) for the relevant Assessment Year. The Income Tax Department will verify the details against Form 26AS/AIS and process the refund to your bank account.