What is TDS in India?

TDS (Tax Deducted at Source) is a means of collecting income tax in India under the Indian Income Tax Act. The person making a payment deducts tax at source and the balance is paid to the recipient. The deducted amount is deposited with the government.

What are common TDS rates in India?

Common TDS rates include: 10% for professional/technical services (194J), 2% for contractor payments (194C), 10% for rent (194I), 10% for dividends (194), and 1% for e-commerce operators (194O). Rates may vary based on the nature of payment and PAN availability.

How is TDS calculated?

TDS is calculated using the formula: TDS Amount = Payment Amount × (TDS Rate ÷ 100). The net amount payable is: Payment Amount - TDS Amount. For example, on a ₹1,00,000 payment at 10% TDS, the TDS amount is ₹10,000 and net payable is ₹90,000.

Can I claim back the TDS deducted?

Yes, TDS deducted is not an additional tax but an advance tax payment. When you file your income tax return, the TDS amount is adjusted against your total tax liability. If excess TDS was deducted, you can claim a refund.

Is TDS applicable to freelancers and contractors?

Yes, TDS is applicable to payments made to freelancers (194J at 10%) and contractors (194C at 2% for individuals/HUF, 1% for others). Payments below ₹30,000 to a single party in a financial year are generally exempt from TDS for professional services.

What if the payer does not have my PAN?

If the payee does not provide PAN, TDS is deducted at a higher rate of 20% under Section 206AA of the Income Tax Act, regardless of the normal applicable rate.

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TDS Calculator (India)

Calculate Tax Deducted at Source (TDS) for Indian payments with automatic ₹ formatting

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How to Use TDS Calculator (India)

How to Use the TDS Calculator (India):

Enter the Payment Amount in Indian Rupees (₹)
- You can enter amounts with or without commas
- Examples: 50000, 50,000, ₹50,000, 1,23,456.78
Enter the TDS Rate (%)
- Common rates: 2% for contractors, 10% for professionals/freelancers
- Enter just the number (e.g., 10 for 10%)
View your results instantly:
- TDS Amount: Tax to be deducted at source
- Net Amount: Amount you will receive after TDS
- Effective TDS Rate: Percentage actually deducted
Use example scenarios for quick calculations:
- Freelancer: ₹50,000 @ 10% TDS
- Contractor: ₹2,00,000 @ 2% TDS
- Professional: ₹5,00,000 @ 10% TDS
Copy results to share or save for records
Reset to start a new calculation

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