Frequently Asked Questions
TDS (Tax Deducted at Source) is income tax deducted at the point of income payment by the payer. The deducted amount is deposited with the government on behalf of the payee.
TDS on salary (Section 192) is deducted at the applicable income tax slab rate of the employee. There is no fixed rate.
Under Section 194I, TDS on rent for land/building is 10% if rent exceeds ₹2.4 lakh/year (₹20,000/month). For plant and machinery, it is 2%.
Section 194J: 10% TDS on fees for professional services (doctors, lawyers, CAs) and 2% for technical services if payment exceeds ₹30,000/year.
Yes. If excess TDS is deducted, you can claim refund by filing your ITR. The refund is processed by the Income Tax Department.
About this calculator
Tax Deducted at Source, or TDS, is income tax that the person paying you must hold back and deposit with the government before you receive the money. It applies to salary, rent, professional fees, interest, commission, contractor payments and more. This calculator shows how much TDS is cut from a payment and what you actually receive.
Pick the type of payment, enter the amount and say whether the payee has given a PAN. For ordinary payments it applies the standard rate and respects the annual threshold, below which no TDS applies. For salary it estimates the annual TDS on slab rates under the new regime. If the payee has no PAN, the rate rises to 20% or the normal rate, whichever is higher.
How to use it
- Choose the Payment Type, such as rent, professional fees or interest.
- Enter the Amount. For salary enter the annual figure with One-time frequency.
- Say whether the payee has provided a PAN.
- Choose the Frequency: one-time, or a monthly payment that is annualised.
- Press Calculate TDS to see the rate, the TDS and the net receivable.
How TDS is calculated
TDS = Payment × Rate, applied only when the payment (or the annual total) crosses the section's threshold. Standard rates: professional fees 10%, technical services 2%, rent on land or building 10%, rent on plant and machinery 2%, bank interest 10%, commission 2% and contractors 1% for individuals or 2% for others. Without PAN the rate is the higher of the normal rate and 20%. For salary, TDS is the estimated annual tax divided over the months.
Worked example
Professional fee of ₹1,00,000 paid to a freelancer with PAN
| Gross amount | ₹1,00,000 |
| TDS at 10% (Section 194J) | ₹10,000 |
| Net amount received | ₹90,000 |
| Net if PAN is missing (20%) | ₹80,000 |
The ₹10,000 is not an extra tax. It is credited against your final tax liability and shows up in Form 26AS and your AIS. If your total tax is lower, you claim the difference back as a refund.
Tips and common mistakes
- Always give your PAN to anyone who pays you. Missing PAN doubles the deduction to 20%.
- Check Form 26AS or the AIS to confirm that every TDS deduction has actually been deposited in your name.
- Submit Form 15G or 15H for interest income if your total income is below the taxable limit.
- TDS is not the final tax. Excess TDS can be claimed back when you file your return.
- Thresholds changed in 2025: rent is now ₹6 lakh a year, professional fees ₹50,000 and bank interest ₹50,000 (₹1 lakh for seniors).
Frequently asked questions
What is TDS?
Tax Deducted at Source is tax withheld by the payer at the time of payment and deposited with the government on your behalf.
What is the TDS rate on professional fees?
10% for professional services and 2% for technical services under Section 194J, when annual payments exceed ₹50,000.
When is TDS on rent deducted?
At 10% on rent for land or building when the annual rent exceeds ₹6,00,000, which is ₹50,000 a month.
What happens if I do not have a PAN?
TDS is deducted at 20% or the normal rate, whichever is higher.
How do I claim back excess TDS?
File your income tax return. The TDS shown in Form 26AS and AIS is credited against your tax, and any excess is refunded.
Is the TDS on salary a flat rate?
No. Employers estimate your annual tax on slab rates and deduct it in equal monthly instalments.