TDS Calculator

What is a TDS calculator?

TDS calculator is a simple tool that helps you know whether you are required to deduct TDS or not, and if yes, then what amount. It enables our users to check whether they had deducted the correct TDS or not, and in addition to this, it also provides them with a basic insight into related rules of TDS.

Using our TDS calculator is simple, and it can be used no of times; in case you need any expert opinion in relation to income tax and tax planning, you may contact our experts.

How Does the TDS Calculator Works

TDS calculator helps you to get an estimate of the amount which you are liable to deduct on a particular transaction.

It is an easy-to-use and handy tool to calculate the amount of TDS based on the type of recipient and the nature of the transaction.

To calculate the TDS amount, you need to follow the below-mentioned steps: -

• Select the type of Recipient- Individual/Sole proprietor/HUF or others like company etc.
• If you have a Valid PAN of the person for whom TDS is to be deducted, select yes; otherwise, no.
• Amount of payment to be to the recipient
• Nature of payment

And that's it; you are ready with the amount of TDS required to be deducted.

Benefit of using the TDS Calculator

It provides you with the solution of what amount you are liable to deduct as TDS and the basic principle or rule attached to that particular transaction.

It helps users to check whether the TDS deduction done is accurate or not.

It is easily available with one click.

Calculation of TDS

TDS Calculation on Salary:

• Step 1: Estimate your total taxable income for the particular financial year. This should include your salary, any other income you earn (such as rental or interest income), and any exemptions you are eligible for (House Rent Allowance, Medical Expenses, and investment deductions)
• Step 2: Divide your payable income tax by the number of months of employment to calculate the monthly TDS amount.
  For example, if your estimated total taxable income for the current financial year is ₹10,00,000 and you are employed for 12 months, your monthly TDS amount would be ₹10,00,000 X 30% / 12 = ₹25,000.

Some additional points to keep in mind when calculating TDS on salary:

• If you do not have a PAN card, your employer will deduct higher TDS at a rate of 20% plus 4% cess on other incomes, such as interest from fixed deposits, dividends, winnings from lottery or games, etc.
• If you have submitted a declaration to your employer opting for the new tax regime, your TDS will be calculated using the new tax slabs and deduction rules.
• You can claim a refund of TDS if you have overpaid tax.

To calculate TDS under different sections, you need to follow these steps:

• Step 1: Identify the nature of income and the relevant section that applies to it.
• Step 2: Check the threshold limit for that section. If the income exceeds the threshold limit, then TDS is applicable. Otherwise, no TDS is required.
• Step 3: Apply the prescribed TDS rate for that section on the income amount. If there is no PAN of the payee, then apply a higher rate of 20% plus cess.

Frequently Asked Questions