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TDS Calculator – Compute Your Tax Deduction at Source

Tax Deducted at Source (TDS) is a mechanism where tax is deducted at the time of payment. Whether you are a salaried employee, self-employed, or earning from fixed deposits, understanding how much TDS is deducted is crucial. Our TDS Calculator helps you determine the exact amount deducted from your income.

What is Tax Deducted at Source (TDS)?

TDS is a tax deduction system implemented by the Income Tax Department of India to collect tax directly from income sources like:

  • Salary
  • Fixed Deposits (FD) and Savings Account Interest
  • Rent Payments
  • Professional and Freelance Payments
  • Commission and Brokerage
  • Contractual Work

Employers, banks, and other entities deduct TDS at the prescribed rates and deposit it with the government.

How is TDS Calculated?

The formula for TDS calculation depends on the income type. However, the general formula is:

TDS = Applicable Income × TDS Rate

For example:

  • If you earn ₹50,000 per month and the TDS rate is 10%, the TDS deduction will be ₹5,000 per month.
  • On Fixed Deposit (FD) interest of ₹1,00,000 with a TDS rate of 10%, ₹10,000 will be deducted.

TDS Slabs & Rates for FY 2024-25

The TDS rates vary depending on the type of income. Here are some common TDS rates:

Income Type TDS Rate
Salary (as per tax slab) As per income tax slab
Fixed Deposit (FD) Interest 10%
Rent (above ₹50,000 per month) 5%
Freelance/Professional Fees 10%
Commission & Brokerage 5%

Example of TDS Calculation

Scenario: You earn a salary of ₹12,00,000 per annum. The employer calculates tax liability as per your income tax slab and deducts TDS accordingly.

Step 1: Compute taxable income after deductions.
Step 2: Apply the applicable income tax slab.
Step 3: Deduct TDS every month based on projected tax liability.

For a salary of ₹1,00,000 per month, if the applicable income tax is ₹1,50,000 annually, the employer deducts ₹12,500 per month as TDS.

How to Use the TDS Calculator?

  1. Enter your monthly or annual income.
  2. Specify the income type (salary, FD, rent, etc.).
  3. The calculator applies the correct TDS rate.
  4. Click Calculate to see your TDS deduction amount.

Frequently Asked Questions (FAQs)

Employers, banks, tenants (for rent above ₹50,000), and businesses making professional or contractual payments must deduct TDS.

Yes, if excess TDS has been deducted, you can claim a refund while filing your Income Tax Return (ITR).

You can check your Form 26AS on the Income Tax Department website to see TDS deductions made on your income.

If TDS is not deducted, the payer may face penalties, and the receiver will need to pay taxes directly while filing their ITR.

Conclusion

The TDS Calculator helps you determine tax deductions on salary, FD interest, rent, and professional payments. By using this calculator, you can ensure tax compliance and plan finances effectively.