Calculate TDS (Tax Deducted at Source) on payments with section-wise rates, late deposit interest, and penalty. Includes PAN impact and section reference table.
Tax Deducted at Source (TDS) is India's mechanism for collecting income tax at the point of payment. When you receive interest, rent, professional fees, commission, or other specified income above threshold limits, the payer deducts TDS before paying you the net amount and deposits it with the government on your behalf.
TDS rates vary by section: Section 194A covers bank interest at 10% above ₹40,000 (₹50,000 for senior citizens), Section 194I covers rent at 10% above ₹2,40,000, and Section 194J covers professional fees at 10% above ₹30,000. If the payee does not provide a PAN, the rate jumps to 20% regardless of section — making PAN submission critical.
Late TDS deposits attract interest at 1.5% per month from the date of deduction to the date of deposit. Late filing of TDS returns incurs fees of ₹200/day under Section 234E. This calculator computes the exact TDS, interest on delayed deposits, and provides a complete section reference for all major TDS provisions.
TDS compliance involves multiple sections, rates, thresholds, and penalties. Wrong calculations lead to short deduction (attracting interest and penalties) or excess deduction (blocking the payee's cash flow). This calculator applies the correct section-wise rates and computes late deposit interest automatically. That makes it easier to document compliance decisions before filing or remitting.
TDS = Taxable Amount × Rate. If no PAN: rate = 20%. Late deposit interest = TDS × 1.5% × months late. Late filing fee (234E) = ₹200/day (capped at TDS amount). Taxable Amount = Payment − Threshold (if payment exceeds threshold; else 0).
Result: TDS: ₹50,000 — Net: ₹4,50,000 — Effective Rate: 10% — Threshold: ₹40,000
On ₹5,00,000 bank interest, TDS of ₹50,000 is deducted at 10% under Section 194A (the full amount is taxable since it exceeds the ₹40,000 threshold). The net amount credited is ₹4,50,000. If PAN were not provided, TDS would be ₹1,00,000 (20%).
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TDS (Tax Deducted at Source) is tax collected by the payer at the time of making specified payments (interest, rent, salary, professional fees, etc.). Banks deduct TDS on interest, tenants on rent above ₹2.4L, businesses on contractor/professional payments. The deducted amount is deposited with the government and credited to the payee's tax account.
If the payee does not furnish their PAN, TDS must be deducted at 20% or the prescribed section rate, whichever is higher. Since most section rates are below 20%, not providing PAN effectively doubles or triples the TDS amount. This is governed by Section 206AA of the Income Tax Act.
Submit Form 15G (under 60 years) or Form 15H (senior citizens 60+) to the bank if your total taxable income is below the basic exemption limit (₹2.5L/₹3L/₹5L). This declaration prevents TDS deduction. Submit at the start of each financial year for each bank account.
There are two types: (1) Interest at 1% per month for late deduction (from due date to actual deduction date), and (2) Interest at 1.5% per month for late deposit (from deduction date to actual deposit date). Both are calculated on the TDS amount and are mandatory.
A late filing fee of ₹200 per day is charged for each day of delay in filing TDS returns (Form 24Q, 26Q, etc.). The fee is capped at the total TDS amount in the return. For example, if TDS of ₹10,000 and the return is 30 days late, the fee is ₹6,000 (30 × ₹200, which is less than ₹10,000).
TDS deducted on your income is reflected in Form 26AS (Annual Tax Statement). When filing your Income Tax Return, you claim credit for all TDS amounts, which reduce your total tax liability. Any excess TDS over your actual tax is refunded by the Income Tax Department.