TDS Calculator
Calculate TDS on salary, interest, rent, professional fees, and other payments. Updated TDS rates for FY 2024-25.
Calculate TDS
Threshold: ₹40,000 | Rate: 10% (with PAN)
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Higher TDS rate applies if PAN is not provided (Section 206AA)
Common TDS Rates (FY 2024-25)
| Section | Nature | Threshold | Rate |
|---|---|---|---|
| 192 | Salary | ₹2,50,000 | 0% |
| 194A | Interest (Banks) | ₹40,000 | 10% |
| 194A | Interest (Others) | ₹5,000 | 10% |
| 194B | Lottery/Crossword | ₹10,000 | 30% |
| 194C | Contractor (Individual) | ₹30,000 | 1% |
| 194C | Contractor (Others) | ₹30,000 | 2% |
| 194D | Insurance Commission | ₹15,000 | 5% |
| 194H | Commission/Brokerage | ₹15,000 | 5% |
Important Notes
- • TDS must be deducted at the time of credit or payment, whichever is earlier
- • If PAN is not provided, TDS is deducted at 20% or applicable rate, whichever is higher
- • TDS return (Form 26Q) must be filed quarterly
- • TDS certificates (Form 16/16A) must be issued to deductees
- • Lower/Nil TDS certificate can be obtained under Section 197
Frequently Asked Questions
What is TDS?
TDS (Tax Deducted at Source) is a system where tax is deducted at the point of income generation. The payer (deductor) deducts tax and deposits it with the government on behalf of the payee (deductee). This ensures regular flow of tax revenue and reduces tax evasion.
What happens if PAN is not provided?
Under Section 206AA, if the payee doesn't provide PAN, TDS is deducted at the higher of: (1) Rate specified in the Act, (2) Rate in force (Finance Act), or (3) 20%. This is a penalty provision to encourage PAN compliance.
How can I reduce TDS deduction?
You can: (1) Apply for Lower TDS Certificate under Section 197 if your income is below taxable limit, (2) Submit Form 15G (below 60 years) or Form 15H (senior citizens) to banks for interest income if your total income is below exemption limit, (3) Provide investment proofs to your employer to reduce salary TDS.
How to check TDS credit?
You can check your TDS credit in Form 26AS on the Income Tax e-filing portal. Log in with your PAN, go to "View Form 26AS" section. This statement shows all TDS deducted, TCS collected, and advance tax paid against your PAN. Verify it before filing ITR.