TDS Calculator
Use Legalxindia’s free TDS Calculator to instantly find out how much tax gets deducted at source on any payment. Whether you’re an employer processing salaries, a business paying contractors, or a landlord receiving rent, this tool gives you the exact TDS amount in seconds. Built by Legalxindia’s team of tax and compliance experts, the calculator covers all major TDS sections under the Income Tax Act and stays updated for 2026 rates. Just pick your section, enter the payment amount, select PAN status, and you’re done.
Access it free at legalxindia. com/tools/tds-calculator
What This TDS Calculator Does
This tax deduction calculator handles TDS across every common payment type in India. You don’t need to memorize rates or dig through the Income Tax Act. The tool does the heavy lifting for you.
It covers both resident and non-resident scenarios, accounts for the 4% Health and Education Cess where applicable, and shows the net amount payable after deduction. That’s exactly the figure you need before issuing a payment.
Who Should Use This Tool
This calculator is genuinely useful for a wide range of people:
- Employers calculating TDS on employee salaries under Section 192
- Businesses making payments to contractors or sub-contractors under Section 194C
- Companies paying professional or technical fees under Section 194J
- Property owners and tenants dealing with rent payments under Section 194I
- Businesses paying commission or brokerage under Section 194H
- Banks and NBFCs calculating TDS on interest under Section 194A
- Accountants and tax professionals handling client TDS filings
- Freelancers who want to know how much will be deducted from their invoices
Sections Covered
The Legalxindia TDS Calculator covers the following sections:
- Section 192 (Salary)
- Section 193 (Interest on Securities)
- Section 194 (Dividend)
- Section 194A (Interest other than on Securities)
- Section 194B (Lottery or Crossword Winnings)
- Section 194C (Contractor payments, Individual/HUF and Others)
- Section 194D (Insurance Commission)
- Section 194H (Commission and Brokerage)
- Section 194I (Rent on Land/Building and Plant/Machinery)
- Section 194J (Professional Fees and Technical Fees/FTS)
- Section 194K (Mutual Fund Units)
- Section 194Q (Purchase of Goods)
How to Use the TDS Calculator
The interface is clean and takes less than a minute to fill in. Here’s exactly what to do.
Step 1: Select Your TDS Section
The first dropdown asks you to pick the relevant TDS section. Each option shows the section number and a brief description, like “194J – Professional Fees” or “194I – Rent (Land/Building).”
If you’re not sure which section applies, use the table in the next section of this page. It maps payment types to their sections clearly.
Once you select a section, the calculator automatically displays the applicable TDS rate and the threshold limit. For example, if you select Section 194J (Professional Fees), it shows Rate: 10% and Threshold: ₹30,000.
Step 2: Enter the Payment Amount
Type the gross payment amount in the payment field. This should be the total amount before any deductions. Don’t enter the post-deduction figure.
Quick example: If you’re paying a consultant ₹1,00,000, enter ₹1,00,000 in this field. The calculator will show that TDS at 10% comes to ₹10,000, with an additional ₹400 as Health and Education Cess, making total TDS ₹10,400. The net payable to the consultant would be ₹90,000.
Step 3: Choose PAN Status
Select whether the payee has a valid PAN or not. This matters a lot. When a payee doesn’t have a PAN, the TDS rate shoots up significantly. The tool adjusts the rate automatically based on your selection.
Two options are available:
- PAN Available– standard section rate applies
- No PAN– higher rate applies (typically 20% or the section rate, whichever is higher)
Step 4: Read Your Results
The results panel shows five key figures:
- Gross Payment
- TDS Rate
- TDS Amount
- Health and Education Cess (4%)
- Total TDS Deducted
- Net Amount Payable
The tool also displays section-specific notes. For Section 194J, for instance, it reminds you that TDS must be deposited by the 7th of the next month, Form 26Q must be filed quarterly, and Form 16A must be issued to the deductee. Those reminders alone can save you from a penalty.
Hit Reset Calculator to start a fresh calculation for a different payment or section.
Understanding Your TDS Calculation Results
Numbers alone don’t always tell the full story. Here’s what each output actually means for your compliance obligations.
What Each Output Field Means
Gross Payment:This is the original amount before TDS. It’s what was agreed upon in the contract or invoice.
TDS Rate:The percentage applicable under the selected section. This comes directly from the Income Tax Act and is updated for 2026.
TDS Amount:The actual rupee amount being deducted. This goes to the government, not the payee.
Health and Education Cess (4%):Applied on top of the TDS amount for certain transactions. It adds up, especially on large payments.
Total TDS Deducted:TDS Amount plus Cess. This is what you deposit with the Income Tax Department.
Net Amount Payable:What the payee actually receives. This is the gross amount minus total TDS deducted.
When No PAN Is Available
the no-PAN situation is one of the most common TDS mistakes businesses make. If a payee can’t provide a valid PAN, you must deduct TDS at 20% or the applicable section rate, whichever is higher. The Legalxindia TDS Calculator handles this automatically when you select “No PAN” in the dropdown.
Don’t guess. Always check. A wrong deduction rate can lead to notices from the Income Tax Department, and the deductor (that’s you) is liable for the shortfall.
Health and Education Cess Explained
The 4% Health and Education Cess is levied on the TDS amount. It isn’t a flat ₹400. It’s always 4% of whatever TDS was calculated. So on a ₹50,000 payment under Section 194J at 10%, the TDS is ₹5,000 and the cess is ₹200. Total deduction: ₹5,200.
The calculator computes this automatically, so you don’t need to do the math yourself.
TDS Rates and Thresholds Across Key Sections
This table gives you a quick reference for the most commonly used TDS sections in India, based on 2026 provisions.
| TDS Section | Nature of Payment | TDS Rate (With PAN) | TDS Rate (No PAN) | Threshold Limit |
|---|---|---|---|---|
| 192 | Salary | As per slab | As per slab | Basic exemption limit |
| 193 | Interest on Securities | 10% | 20% | Varies |
| 194A | Interest (other than securities) | 10% | 20% | ₹40,000 (banks) |
| 194B | Lottery/Crossword Winnings | 30% | 30% | ₹10,000 |
| 194C (Individual/HUF) | Contractor Payments | 1% | 20% | ₹30,000 per contract |
| 194C (Others) | Contractor Payments | 2% | 20% | ₹30,000 per contract |
| 194D | Insurance Commission | 5% | 20% | ₹15,000 |
| 194H | Commission/Brokerage | 5% | 20% | ₹15,000 |
| 194I (Land/Building) | Rent | 10% | 20% | ₹2,40,000 per year |
| 194I (Plant/Machinery) | Rent | 2% | 20% | ₹2,40,000 per year |
| 194J (Professional) | Professional Fees | 10% | 20% | ₹30,000 |
| 194J (Technical/FTS) | Technical Service Fees | 2% | 20% | ₹30,000 |
| 194K | Mutual Fund Units | 10% | 20% | ₹5,000 |
| 194Q | Purchase of Goods | 0.1% | 5% | ₹50,00,000 |
Pro tip: Always use the Legalxindia TDS Calculator alongside this table. The table gives you an overview, but the calculator gives you the exact deduction figure with cess included.
TDS Explained Simply
TDS stands for Tax Deducted at Source. The concept is pretty simple once you strip away the jargon.
Why TDS Exists
The government doesn’t want to wait until the end of the year to collect tax. TDS is a way of collecting tax at the point of payment itself. So instead of the payee filing a return at year-end and paying all the tax then, the payer deducts a portion upfront and deposits it with the government directly.
This reduces tax evasion. It also spreads out government revenue across the year rather than creating one big collection cycle.
Who Deducts TDS
The payer is always responsible for deducting TDS. That could be:
- An employer paying salary to an employee
- A company paying a law firm for legal services
- A business renting office space from a landlord
- A firm paying commission to its sales agents
If you’re the one making the payment and the transaction falls above the threshold, you’re legally required to deduct TDS before the money leaves your account. No exceptions.
What Happens After Deduction
Once you deduct TDS, you need to:
- Deposit the deducted amount with the government by the 7th of the following month (or March 31st for March deductions)
- File TDS returns quarterly using Form 24Q (for salary) or Form 26Q (for other payments)
- Issue TDS certificates to the payee: Form 16 for salary, Form 16A for other payments
Miss any of these steps and you’re looking at penalties and interest under Section 201 of the Income Tax Act. Not a situation you want to be in.
Legalxindia offers a dedicated TDS Return Filingservice covering Form 24Q and Form 26Q. If you’d rather hand this off to experts, that’s an option available directly on the platform.
Tips for Managing TDS Correctly
Getting TDS right isn’t just about calculating the right amount. It’s about the whole process.
- Always collect PAN before making payments.Without PAN, you’re stuck with the higher 20% deduction rate, and the payee ends up losing more money than necessary.
- Check threshold limits before deducting.If a contractor’s total payment for the year stays below ₹30,000, TDS doesn’t apply. Don’t deduct unnecessarily.
- Don’t wait until the last day to deposit.TDS must be deposited by the 7th of the following month. Build reminders into your workflow so you’re never rushing on the 7th.
- Distinguish between professional and technical fees under 194J.Professional fees attract 10% TDS. Technical service fees attract only 2%. Many businesses get this wrong and over-deduct.
- Keep records of every TDS deduction.Your TDS return filing depends entirely on accurate records. Use the Legalxindia calculator to pre-calculate and store amounts before finalising each payment.
- Issue Form 16A on time.Payees need this to claim credit for the TDS deducted. Delaying it causes friction and sometimes formal complaints.
- Reconcile TDS with Form 26AS regularly.This is where TDS credits are reflected for the payee. Discrepancies between what you’ve deposited and what shows up in Form 26AS need to be fixed quickly.
Real talk: most TDS problems aren’t about not knowing the rate. They’re about process failures. Build a clean system and the calculation side becomes the easy part.
The Formula Behind the Calculation
The Legalxindia TDS Calculator uses this standard formula:
TDS Amount = Gross Payment × TDS Rate / 100
Health and Education Cess = TDS Amount × 4 / 100
Total TDS Deducted = TDS Amount + Health and Education Cess
Net Amount Payable = Gross Payment – Total TDS Deducted
Let’s run through a real example. Say you’re paying a professional consultant ₹1,50,000 under Section 194J. PAN is available, so the rate is 10%.
- TDS Amount = ₹1,50,000 × 10% = ₹15,000
- Health and Education Cess = ₹15,000 × 4% = ₹600
- Total TDS Deducted = ₹15,000 + ₹600 = ₹15,600
- Net Payable to Consultant = ₹1,50,000 – ₹15,600 = ₹1,34,400
The formula itself is straightforward, but applying the right rate to the right section, checking the threshold, and then remembering to add cess is where people slip up. That’s exactly why having a dedicated tax deduction calculator like this one saves so much time and reduces errors.
For salary under Section 192, there’s no fixed rate. TDS on salary is based on the estimated annual income and applicable slab rates for the financial year. The Legalxindia tool handles this with a separate computation approach for Section 192 specifically.
Frequently Asked Questions About TDS
How accurate is the Legalxindia TDS Calculator?
The calculator uses rates and thresholds directly from the Income Tax Act as updated for 2026. It accounts for the 4% Health and Education Cess and adjusts for no-PAN scenarios automatically. That said, for complex cases like salary TDS with exemptions or non-resident payments with DTAA benefits, consulting a tax professional is always a good idea.
What’s the difference between TDS and TCS?
TDS is Tax Deducted at Source, meaning the payer deducts tax before making a payment. TCS is Tax Collected at Source, where the seller collects tax from the buyer at the time of sale. They operate under different sections and different forms for return filing.
What happens if I don’t deduct TDS when required?
The Income Tax Department treats the payer as an “assessee in default.” You’ll face interest at 1% per month on the amount not deducted, and 1.5% per month on the amount deducted but not deposited. Penalties under Section 271C can go up to the amount of TDS itself. It adds up fast.
Can a payee get a refund of TDS deducted?
Yes. If the total TDS deducted is more than the actual tax liability of the payee after filing their Income Tax Return, the excess shows up as a refund. This is why Form 26AS is important. The payee can see exactly how much TDS credit they have against their PAN.
Is TDS applicable below the threshold limit?
No. If the payment amount is below the prescribed threshold for that section, TDS doesn’t apply. For example, under Section 194J, if the total professional fee payment to a single payee in a financial year doesn’t cross ₹30,000, no TDS is required. The Legalxindia TDS Calculator takes thresholds into account automatically.
What is the TDS rate when the payee has no PAN?
When the payee doesn’t furnish a valid PAN, TDS must be deducted at the higher of: 20%, the rate specified in the relevant section, or the rate in force. in practice, this almost always means 20%. Select “No PAN” in the calculator and it adjusts the rate automatically for you.
How often should TDS be deposited with the government?
TDS deducted by employers must be deposited by the 7th of the following month. For March, the deadline is April 30th. For government deductors, it must be deposited on the same day the TDS is deducted. Late deposits attract interest at 1.5% per month.
What forms are used for TDS return filing?
Form 24Q is used for TDS on salary payments. Form 26Q covers all other payments to residents. Form 27Q is for payments to non-residents. These returns are filed quarterly. Legalxindia’s TDS Return Filing service handles all three forms for businesses and individuals.
Does TDS apply to payments made to non-residents?
Yes, TDS applies to payments made to non-residents under Section 195. The rates are typically higher and depend on the nature of income and any applicable Double Taxation Avoidance Agreement between India and the payee’s country. For non-resident TDS, the current calculator covers general scenarios, but DTAA cases need expert review.
What is Form 16A and when must it be issued?
Form 16A is a TDS certificate issued by the deductor to the deductee for payments other than salary. It shows the amount paid, TDS deducted, and the deposit details. It must be issued within 15 days of the due date for filing the TDS return for that quarter. Employers use Form 16 for salary TDS specifically. Legalxindia’s team can help you generate and issue these on time through the TDS Return Filing service available on the platform.