TDS (Tax Deducted at Source) Calculator
Use our TDS Calculator to estimate your TDS deductions based on your income. Learn how TDS works, its benefits, and more below.
Calculate Your TDS Deductions
What is TDS (Tax Deducted at Source)?
Tax Deducted at Source (TDS) is a method of collecting income tax in India, where a certain percentage of tax is deducted by the payer at the time of making payments such as salary, rent, professional fees, etc., to the payee. The TDS amount is deducted at the source and is remitted to the government. The payee can then claim credit for the TDS while filing their income tax return, as the tax is already paid on their behalf.
How Does the TDS Calculator Work?
The TDS Calculator helps you estimate the amount of TDS that will be deducted from your income by considering the following parameters:
- Income Amount: The total amount of income on which TDS is applicable.
- TDS Rate: The percentage of TDS that is applicable on the income.
The calculator uses the following formula to estimate the TDS deducted:
TDS Amount = Income Amount × TDS Rate
Benefits of Understanding TDS
- Compliance: Understanding TDS helps ensure that you comply with tax regulations by accurately calculating and reporting the tax deducted at source.
- Tax Planning: By knowing the TDS deducted on your income, you can plan your taxes better and avoid paying excess tax at the end of the financial year.
- Claiming Refunds: If excess TDS is deducted, understanding TDS can help you claim refunds while filing your income tax return.
- Avoid Penalties: Accurate calculation and payment of TDS help avoid penalties and interest charges that may arise due to underpayment or non-payment of TDS.
- Easy Documentation: Proper TDS calculation ensures accurate documentation, making it easier to file returns and maintain records.
Frequently Asked Questions (FAQ)
1. What types of income are subject to TDS?
TDS is applicable to various types of income, including salary, interest on fixed deposits, rent, professional fees, commission, and more. The rate of TDS varies depending on the type of income.
2. Can I claim a refund if excess TDS is deducted?
Yes, if excess TDS is deducted, you can claim a refund while filing your income tax return. The refund will be processed by the Income Tax Department after verifying your return.
3. What happens if TDS is not deducted by the payer?
If TDS is not deducted by the payer, they may be liable to pay interest and penalties for non-compliance. The payee, however, is still required to report the income and pay the applicable taxes.
4. How can I check the TDS deducted on my income?
You can check the TDS deducted on your income by referring to Form 16 (for salaried individuals) or Form 26AS, which is available on the Income Tax Department's website. Form 26AS provides a detailed summary of TDS deducted on your income.
5. What is the penalty for late payment of TDS?
The penalty for late payment of TDS includes interest at the rate of 1.5% per month from the date on which TDS was deducted to the actual date of payment. Additionally, there may be penalties for non-compliance.