TDS Calculator

TDS (Tax Deducted at Source) is a mechanism where the payer deducts income tax before making certain payments. It applies to salary, interest, rent, professional fees, commission, and more. The deducted amount is deposited with the government and credited against your total tax liability when you file your ITR.

Without a valid (operative) PAN, TDS is deducted at the highest of: twice the normal rate, the normal rate, or 20% (old Section 206AA; for most payments this works out to 20%). Section 206AB (higher TDS for non-filers) was removed from 1 Apr 2025. Always provide your PAN to the deductor to avoid excess deduction.

TDS credit is automatically available in your Annual Information Statement (AIS) and Form 26AS. When you file your ITR, the TDS already deducted is adjusted against your total tax liability. If excess TDS was deducted, you'll receive a refund from the Income Tax department.

If you are an individual or HUF not liable to tax audit and pay rent above ₹50,000 per month, you must deduct TDS @2% (old Section 194-IB, now s.393 of the Income-tax Act 2025; cut from 5% from 1 Oct 2024). You do not need a TAN — deduct once a year, from the last month of the year or tenancy. For other payers (old 194I), TDS is 10% on land/building/furniture and 2% on plant and machinery when rent exceeds ₹50,000 for a month or part of a month (this replaced the ₹2,40,000 a year limit from 1 Apr 2025).

No. TDS is an advance tax payment, not the final tax. Your actual tax liability is calculated when you file your ITR based on your total income. If your total income is below the taxable limit, you can claim a full refund of TDS by filing your return.