Estimate TDS to be deducted on payments such as professional fees, contractor bills, rent, and interest. Select the payment type, enter the amount, and see TDS and net payout instantly.
This is a simplified estimator. Actual TDS obligations depend on threshold limits, PAN availability, nature of payment, and latest provisions. Please verify with a qualified professional before filing returns or challans.
Use this TDS calculator to estimate the tax to be deducted at source on a payment. Choose a typical payment type to auto-fill an illustrative TDS rate, or enter a custom rate as per the relevant section.
*Rates shown above are illustrative and may not reflect latest provisions or conditions (e.g. PAN availability, thresholds).
Gross amount on which TDS is to be computed.
Auto-filled for common payment types. You can override with the exact rate applicable to your case.
Tax Deducted at Source (TDS) is a mechanism under the Indian Income-tax Act where the person making certain payments (payer or deductor) is required to deduct tax at a prescribed rate and deposit it with the government on behalf of the payee. This helps ensure a steady inflow of tax revenue and better reporting of incomes.
TDS provisions apply differently for different payments – such as salary, professional fees, contractor bills, rent, commission, interest, etc. Each has its own section (like 192, 194C, 194J, 194I, 194A) and conditions.
Many TDS sections have a minimum threshold – TDS is deducted only if the payment exceeds that limit during the year. The applicable rate may vary based on whether PAN is available, whether payee is resident/non-resident, and other factors.
Once the applicable rate is known, TDS is usually calculated as:
TDS = Payment amount × TDS rate (%)
The deducted TDS must be deposited within prescribed timelines and reported in TDS returns, after which the payee can see the credit in Form 26AS / AIS.
BrightBooks Advisory Services can help you set up systematic TDS processes – from verifying applicable sections and rates, to maintaining ledgers, filing TDS returns, and reconciling Form 26AS with books of accounts.
TDS rates and conditions change over time and may depend on PAN availability, residential status, nature of payment, and threshold limits. The rates in this tool are only for rough estimation and learning purposes.
No. The calculator simply applies a rate on the amount you enter. If your total payments are below the relevant threshold in a financial year, TDS may not actually be required. Always check the applicable section.
In some arrangements, the payer agrees that the payee should receive a fixed net amount. In such cases, TDS is computed by grossing up the net amount so that TDS is borne by the payer, not deducted from payee’s invoice.
Salary TDS under Section 192 is typically computed using income tax slabs and full-year projections. This tool is not designed as a full salary tax engine, but can give a very rough idea if you manually enter an effective TDS rate.
