100% Free · Updated FY 2025-26

India's Most Accurate TDS Calculator

Calculate Tax Deducted at Source for salary, rent, contractors, professional fees, and 15+ more sections. Instant results with zero sign-up..

Instant Calculation Govt-Verified Rates Trusted by 10,000+ Businesses All 15+ TDS Sections
Threshold: ₹30,000 per transaction / ₹1,00,000 per year
Payee has a valid PAN?
Without PAN, TDS is deducted at 20% or twice the applicable rate (whichever is higher)
1%
Section 194C · Individual/HUF · PAN Available
Calculation
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GST Rate Reference

TDS Section Quick Reference

Section Nature of Payment Individual Rate Company Rate Threshold
0% (Nil) Essential Goods Fresh fruits & vegetables, milk, eggs, bread, books, newspapers, bangles 0% 0% 0%

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Reference Guide

What is TDS (Tax Deducted at Source)?

Tax Deducted at Source (TDS) is a mechanism introduced by the Government of India to collect income tax at the very source of income. The payer (deductor) deducts tax from the payment being made and deposits it with the government on behalf of the payee (deductee).

TDS applies to various types of payments — salaries, rent, interest, contractor payments, professional fees, commission, lottery winnings, and more. The applicable rate varies by section under the Income Tax Act, 1961.

The deducted TDS is reflected in the payee's Form 26AS, and they can claim a credit for it while filing their Income Tax Return (ITR), reducing their overall tax liability.

Deductor

The entity making the payment — a company, individual, or firm — responsible for cutting TDS before paying.

Deductee

The person receiving the payment. They get the net amount after TDS and can claim credit in their ITR.

Government

TDS is deposited by the deductor to the government using Challan 281 before the 7th of next month.

Form 26AS

All TDS deducted gets reflected in the payee's Form 26AS — a tax credit ledger maintained by the IT Dept.

TDS Non-Compliance Penalties

Failing to deduct or deposit TDS on time can lead to significant penalties and interest charges. Here's what you need to know:

Late Deduction – Section 201(1A)

Interest @ 1% per month from the date tax was deductible to the date of actual deduction.

Late Deposit – Section 201(1A)

Interest @ 1.5% per month from the date of deduction to the date of actual deposit.

Late Filing – Section 234E

Penalty of ₹200 per day for each day of default in filing TDS return, subject to total TDS amount.

Non-Deduction / Non-Deposit

Penalty equal to the amount of TDS not deducted/deposited under Section 271C. Also treated as assessee-in-default.

TDS Compliance Calendar

Never miss a TDS deadline. Here's your month-by-month compliance guide.

Quarter TDS Return Due Form 16A Due
Q1 (Apr–Jun) 31st July 15th Aug
Q2 (Jul–Sep) 31st Oct 15th Nov
Q3 (Oct–Dec) 31st Jan 15th Feb
Q4 (Jan–Mar) 31st May 15th Jun
TDS Deposit Due Dates
  • April to February: By 7th of the following month
  • March (salary TDS): By 30th April
  • March (other TDS): By 30th April
  • Government deductors: Same day via book transfer (no cash)
Step-by-Step Guide

How to Use the TDS Calculator

Calculate TDS in seconds with 4 simple steps. No registration. No cost. Ever.

01

Select TDS Section

Choose the applicable TDS section based on your payment type — contractor, professional, rent, salary, etc.

02

Choose Payee Type

Select whether the payee is an Individual/HUF or a Company/Firm. Rates differ between the two.

03

Enter Gross Amount

Type the gross payment amount in rupees. The calculator will auto-apply the correct rate instantly.

04

View Instant Result

See TDS amount, effective rate, and net payable amount — clearly broken down in real time.

Why It Matters

Why Use ERP Group for TDS Management?

Manual TDS is error-prone and time-consuming. ERP Group's accounting software automates every step of the TDS lifecycle.

Automatic TDS Calculation

TDS is auto-calculated on every invoice, payment, or purchase based on the correct section, threshold, and payee type — no manual input needed.

Threshold Tracking

ERP Group tracks cumulative payments per vendor across the year and triggers TDS deduction automatically once thresholds are crossed.

Form 16 / 16A Generation

Generate Form 16 for employees and Form 16A for vendors in a single click. All certificates are auto-populated from transactional data.

TDS Return Filing

Prepare and export 24Q and 26Q returns in the required format for TRACES upload. Eliminate manual data entry errors completely.

PAN Verification

Validate PAN numbers in real-time to ensure correct TDS rates are applied. Auto-flag payees without valid PAN and apply 20% rate.

Compliance Reminders

Get automated alerts for TDS deposit deadlines, return filing dates, and Form 16 issuance — so you never miss a compliance date.

GST Rate Reference

TDS vs TCS vs Advance Tax

Understand how TDS differs from TCS (Tax Collected at Source) and Advance Tax.

Parameter TDS TCS Advance Tax
Full Form Tax Deducted at Source Tax Collected at Source Advance Tax
Who Deducts/Pays Payer (Deductor) Seller (Collector) Taxpayer himself
When Applied At time of payment At time of sale/receipt Quarterly instalments
Applicable On Salary, rent, fees, interest, etc. Sale of goods, forest produce, scrap Income above ₹10,000 tax liability
Section 192–194X (IT Act) 206C (IT Act) 207–219 (IT Act)
Deposit Deadline 7th of next month 7th of next month 15th Jun, Sep, Dec, Mar
Got Questions?

Frequently Asked Questions

Everything you need to know about TDS in India, answered simply.

TDS (Tax Deducted at Source) is a method of tax collection by the Indian government at the time income is generated. It ensures timely tax collection and prevents tax evasion. When you make a payment — salary, rent, professional fees — you deduct a prescribed percentage and deposit it to the government on behalf of the recipient.

If you fail to deduct TDS, you will be treated as an "assessee-in-default." You'll be liable to pay the TDS amount yourself along with interest at 1% per month from the date tax was deductible. Additionally, 30% of the expenditure can be disallowed while computing your taxable income.

Yes. If TDS deducted is more than the actual tax liability, the payee can claim a refund by filing an Income Tax Return (ITR). The excess TDS gets credited in Form 26AS, and the refund is processed by the Income Tax Department after assessment.

Form 15G (for individuals below 60) and Form 15H (for senior citizens) are self-declarations submitted by the payee to the deductor requesting nil TDS deduction. This is applicable when the payee's total income is below the basic exemption limit. It must be submitted at the beginning of each financial year.

Under Section 194J, TDS is deducted at 10% for professional services (doctors, lawyers, engineers, architects, etc.) and at 2% for technical services and royalties on films. The threshold limit is ₹30,000 per year. If the payee does not have a valid PAN, TDS is deducted at 20%.

TDS must be deducted at the earlier of two events: (1) when the amount is credited to the payee's account, or (2) when the actual payment is made — whichever happens first. This means if you credit a vendor's account (even in a "payable" ledger), TDS must be deducted at that point.

No. TDS under the Income Tax Act is deducted on the base amount (excluding GST). The GST component is not subject to TDS under the Income Tax Act, 1961. However, there is a separate TDS mechanism under the GST Act (Section 51 of CGST Act) applicable to specific government entities.

Generally, all entities whose accounts are subject to audit under Section 44AB are required to deduct TDS. This includes companies, firms, trusts, and individuals/HUFs whose business turnover exceeds ₹1 crore (or ₹50 lakhs for professionals). However, salary TDS (Section 192) applies to all employers irrespective of audit.

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