TDS Calculator (Tax Deducted at Source)
Determine TDS withholding rates on salary (192), contractor fees (194C), professional fees (194J), and rent (194I).
TDS (Tax Deducted at Source) Calculator
Calculate withholding tax under Indian Income Tax provisions: Section 194J (Professional / Technical), Section 194C (Contractors), Section 194I / 194IB (Rent), Section 194IA (Property), Section 194A (FD Interest), and Section 194S (Crypto). Model Section 206AA non-PAN 20% penalty, Section 197 lower deduction, and filing forms.
Withholding Parameters
TDS Withholding Summary
Professional services attract 10% TDS if aggregate fees exceed ₹30,000 per financial year.
Master Indian TDS Rate & Threshold Reference Matrix (FY 2024–25 & FY 2025–26)
| Section | Nature of Payment | Payee Category | Statutory Threshold | TDS Rate | Non-PAN Rate (Sec 206AA) |
|---|---|---|---|---|---|
| 194J | Professional Services (Legal, Medical, CA, Technical) | All Residents | ₹30,000 p.a. | 10% (Prof) / 2% (Tech) | 20% |
| 194C | Payment to Contractors / Sub-contractors | Individual / HUF Company / Firm |
₹30,000 (single) / ₹1,00,000 (aggregate) | 1% (Individual) 2% (Company) |
20% |
| 194I | Rent (Land, Building, Plant, Machinery) | All Residents (Audit cases) | ₹2,40,000 p.a. | 10% (Building) / 2% (Plant) | 20% |
| 194IB | Rent paid by Individuals/HUF (Non-Audit) | All Landlords | ₹50,000 per month | 2% (Budget 2024) | 20% (capped at 1 month rent) |
| 194IA | Purchase of Immovable Property (Non-Agri) | Resident Seller | ₹50,00,000 (₹50 Lakh) | 1% of consideration | 20% |
| 194A | Interest on Bank / Post Office FDs Interest on Corporate / NBFC FDs |
Regular Individuals Senior Citizens (80TTB) NBFC Depositors |
₹40,000 p.a. ₹50,000 p.a. ₹5,000 p.a. |
10% | 20% |
| 194H | Commission or Brokerage | All Residents | ₹15,000 p.a. | 2% (Budget 2024) | 20% |
| 194S | Transfer of Virtual Digital Assets (Crypto / NFT) | All Residents | ₹10,000 (₹50k for specified) | 1% | 5% |
| 194Q | Purchase of Goods (> ₹10 Cr Turnover Buyer) | Resident Seller | ₹50,00,000 (₹50 Lakh) | 0.1% (on surplus) | 5% |
Statutory Compliance & Operational TDS Guide
Tax Deducted at Source (TDS) is an indirect taxation mechanism mandated under Chapter XVII-B of the Income Tax Act, 1961, designed to collect revenue at the very point of income generation. The person making the payment (the Deductor) is legally obligated to deduct tax and remit it directly to the Central Government on behalf of the recipient (the Deductee).
Key Changes in Finance Act 2024
- Rationalization of 194H, 194IB, and 194M: To ease the compliance burden on taxpayers, the TDS rate for commission/brokerage (194H), rent paid by individuals (194IB), and contract payments by individuals (194M) was reduced from 5% to 2% with effect from October 1, 2024.
- Clarification on Property Threshold (Section 194IA): Budget 2024 clarified that for property purchases involving multiple buyers or multiple sellers, the ₹50 Lakh threshold applies to the aggregate total value of the property, preventing taxpayers from escaping TDS by dividing consideration across co-owners.
Statutory Due Dates & Penalties
Frequently Asked Questions (FAQs)
What is the due date for depositing TDS with the Central Government?
TDS deducted during any month must be deposited by the 7th of the following month (e.g. TDS deducted in October must be deposited by 7th November). For deductions made in March, the due date is extended to 30th April. For Section 194IA (property), 194IB (rent), and 194M, the deposit due date is within 30 days from the end of the month in which deduction was made.
What is the consequence of not providing PAN (Section 206AA)?
Under Section 206AA of the Income Tax Act, if the deductee fails to furnish a valid PAN, TDS must be deducted at the higher of the standard rate or 20% (except for Section 194Q and 194S where the rate is capped at 5%). Furthermore, the deductee will not be able to claim TDS credit in their Form 26AS / AIS.
What is the difference between Section 194I and Section 194IB for rent?
Section 194I applies to businesses and individuals subject to tax audit, requiring 10% TDS (2% on plant/machinery) if annual rent exceeds ₹2,40,000, and requires a TAN. Section 194IB applies to regular individuals/HUFs not subject to audit who pay monthly rent exceeding ₹50,000; they must deduct 2% TDS using only PAN (via Form 26QC) without obtaining a TAN.
How does TDS on purchase of property work under Section 194IA?
When purchasing immovable property (other than agricultural land) valued at ₹50 Lakh or more, the buyer must deduct 1% TDS on the total consideration or stamp duty value (whichever is higher). The buyer deposits this using Challan-cum-statement Form 26QB within 30 days and issues Form 16B to the seller.
What is the penalty for late deposit of TDS under Section 201(1A)?
If TDS is not deducted, interest is charged at 1% per month from the date on which tax was deductible to the date of actual deduction. If TDS is deducted but not deposited on time, interest is charged at 1.5% per month from the date of deduction to the date of actual deposit.
How can I claim a refund of excess TDS deducted?
TDS deducted reflects in your Form 26AS and Annual Information Statement (AIS). When you file your annual Income Tax Return (ITR), the total TDS deducted is credited against your final tax liability. If TDS deducted exceeds your total tax liability, the Income Tax Department issues a direct bank refund with interest under Section 244A.