TDS Calculator
Calculate Tax Deducted at Source (TDS) for various payments under the Income Tax Act. Check rates, thresholds, and net payout splits.
The invoice or billing amount before tax deduction.
Section Details
Rate: 10%
Threshold Limit: ₹30,000
Breakdown of TDS deduction vs Net Payment
Threshold / Applicability Rule
TDS applied as payment exceeds threshold of ₹30,000Grow Your Business Online
TDS Section-wise Rates and Limits Reference Table
Below is a comprehensive guide to standard Tax Deducted at Source (TDS) rates and threshold limits for financial transactions in India:
| Section | Nature of Payment | Standard Rate | Threshold Limit |
|---|---|---|---|
| 192 | Salary Income (Employer deduction) | Slab Rates | Nil (Rebate up to ₹7L/12L) |
| 194A | Interest on bank deposits / other interest | 10% | ₹40,000 (₹50,000 for Senior Citizens) |
| 194C | Payment to Contractors / Sub-contractors | 1% (Ind/HUF) / 2% (Others) | ₹30,000 (Single payment) / ₹1,00,000 (Annual total) |
| 194H | Commission or Brokerage charges | 2% | ₹15,000 |
| 194I | Rent on Land, Building or Furniture | 10% | ₹2,40,000 per year |
| 194I | Rent on Plant and Machinery | 2% | ₹2,40,000 per year |
| 194J | Fees for Professional or Technical Services | 10% | ₹30,000 |
How does Salary TDS (Section 192) work?
Unlike other TDS sections that deduct a flat rate, Section 192 requires your employer to estimate your net annual income, apply standard deductions, calculate your income tax under your chosen tax regime, and deduct it in 12 equal monthly installments.
Grow Your Business Online
Frequently Asked Questions
What is TDS (Tax Deducted at Source)?
TDS is a system introduced by the Indian Income Tax Department where the person making a specified payment (like salary, rent, professional fees, commission, contractor payments) deducts a certain percentage of tax before making the balance payment to the payee.
Who is responsible for deducting TDS?
Generally, individuals or entities carrying out business or professions whose turnover exceeds audit limits (₹1 crore for business, ₹50 lakhs for profession) are required to deduct TDS. Salaried individuals paying rent exceeding ₹50,000/month must also deduct TDS under Section 194-IB.
What happens if I fail to deduct or deposit TDS?
Failure to deduct TDS attracts interest at 1% per month from the date tax was deductible to the date of actual deduction. Failure to deposit deducted TDS attracts interest at 1.5% per month from the date of deduction to the date of payment, along with potential penalties.
Grow Your Business Online
Other Related Tools
Income Tax Calculator
Calculate tax liabilities for FY 2025-26 (AY 2026-27).
HRA Calculator
Calculate tax exemption on House Rent Allowance (HRA).
New vs Old Tax Regime Comparison
Compare regimes side-by-side to find the best savings.
Capital Gains Calculator
Calculate LTCG & STCG taxes for assets.
Form 16 Tax Calculator
Estimate final taxable income directly from Form 16.
Advance Tax Calculator
Check advance tax instalments and deadlines.
80C Deduction Calculator
Optimize tax deductions under Section 80C.
Tax Saving Suggestions
Discover ways to legally lower your income tax.
GSTIN Number Validator
Validate and verify GSTIN structure formats.