Estimate TDS (Tax Deducted at Source) on common payment types, late-deposit interest, and penalty scenarios. Confirm the applicable section, threshold, and year before filing.
Tax Deducted at Source (TDS) is India's mechanism for collecting income tax at the point of payment. When you receive interest, rent, professional fees, commission, or other specified income above threshold limits, the payer deducts TDS before paying you the net amount and deposits it with the government on your behalf.
TDS rates vary by section and financial year. This calculator includes common reference sections such as bank interest, rent, and professional fees, but the threshold and rate must still be checked against the rule set in force for the relevant year. If the payee does not provide a PAN, a higher fallback rate can apply — making PAN submission critical.
Late TDS deposits attract statutory interest, and late filing of TDS returns can also trigger fees. This calculator estimates the TDS amount, interest on delayed deposits, and common section logic, but you should verify the applicable threshold, rate, and filing period for the relevant financial year before remitting or filing.
TDS compliance involves multiple sections, rates, thresholds, and penalties. Wrong calculations lead to short deduction or excess deduction. Use this calculator to model the payment and delay math, then confirm the live section rules before filing or remitting.
TDS = Taxable Amount × Rate. If no PAN: a higher fallback rate may apply. Late deposit interest and late filing fees depend on the governing section and delay period. Taxable Amount = Payment amount after applying the threshold logic relevant to the year and section in force.
Result: TDS: ₹50,000 — Net: ₹4,50,000 — Effective Rate: 10% — Threshold: ₹40,000
On ₹5,00,000 bank interest, TDS of ₹50,000 is deducted at 10% under Section 194A (the full amount is taxable since it exceeds the ₹40,000 threshold). The net amount credited is ₹4,50,000. If PAN were not provided, TDS would be ₹1,00,000 (20%).
Use the section-specific rate and threshold for the relevant financial year, then verify the PAN status and deposit timing before filing.
Most mistakes come from using the wrong section, assuming a stale threshold, or forgetting that late-deposit interest and late-filing fees are separate charges. Treat the page as a reference model and recheck the actual return period before using the result in compliance work.
Last updated:
This worksheet applies the selected TDS section rate to the entered payment amount after threshold logic, then adjusts the result for PAN availability, senior-citizen thresholds where relevant, late-deduction interest, late-deposit interest, and the Section 234E late-filing fee. For rent, the calculator shows an annualized equivalent of Section 194I because the page accepts annual rent inputs.
It is a compliance reference model, not a replacement for the live Income-tax Act text, circulars, or the exact return period you are filing.
TDS (Tax Deducted at Source) is tax collected by the payer at the time of making specified payments (interest, rent, salary, professional fees, etc.). Banks deduct TDS on interest, tenants when rent thresholds are crossed, and businesses on contractor or professional payments. The deducted amount is deposited with the government and credited to the payee's tax account.
If the payee does not furnish their PAN, TDS must be deducted at 20% or the prescribed section rate, whichever is higher. Since most section rates are below 20%, not providing PAN effectively doubles or triples the TDS amount. This is governed by Section 206AA of the Income Tax Act.
Declarations such as Form 15G or 15H may prevent TDS deduction when you meet the eligibility rules for the relevant financial year. Confirm the current exemption-limit and declaration requirements before relying on that outcome.
There are two types: (1) Interest at 1% per month for late deduction (from due date to actual deduction date), and (2) Interest at 1.5% per month for late deposit (from deduction date to actual deposit date). Both are calculated on the TDS amount and are mandatory.
A late filing fee of ₹200 per day is charged for each day of delay in filing TDS returns (Form 24Q, 26Q, etc.). The fee is capped at the total TDS amount in the return. For example, if TDS of ₹10,000 and the return is 30 days late, the fee is ₹6,000 (30 × ₹200, which is less than ₹10,000).
TDS deducted on your income is reflected in Form 26AS (Annual Tax Statement). When filing your Income Tax Return, you claim credit for all TDS amounts, which reduce your total tax liability. Any excess TDS over your actual tax is refunded by the Income Tax Department.