TDS Calculator

How does the tool compute the deduction?

This tool uses a lookup table in its code. You pick one of ten payment types, the tool finds a rate, a no-PAN rate and a threshold for that type, and the TDS amount is the payment multiplied by the rate divided by 100. The net payment is the payment minus that TDS. Everything is shown to the nearest rupee.

Is the threshold compared with a yearly total or with one payment?

With the single amount you type. The threshold line says “per year” for most types, but the code only compares the entered amount to the threshold; it does not know about earlier payments in the same year. When the amount is below the threshold the result is TDS of ₹0, and when it is at or above the threshold the rate is applied to the whole amount, not just the excess.

What rates, sections and thresholds are built in?

The built-in values are listed in the table on this page, for example 10% for professional fees under Section 194J with a threshold of ₹50,000, 2% for commission under Section 194H with a threshold of ₹20,000, and 1% for an individual contractor under Section 194C. They are the figures built into this tool, labelled FY 2025-26 (the rates and thresholds after the Finance Act 2024 and Finance Act 2025 changes). Indian tax rules change in nearly every Union Budget, and the tool’s table is not updated automatically, so the Income Tax Department or a qualified chartered accountant governs the rate that applies to a particular payment. Section numbers refer to the Income-tax Act, 1961 as built into the tool; the Income-tax Act, 2025, in force from 1 April 2026, groups these provisions under new section numbers (Section 392 for salary and Section 393 for other payments), which the tool does not use.

What does the “no PAN” option do?

It swaps the rate for the no-PAN rate stored beside it: 20% for most types, and 30% for lottery and prize winnings, which has the same rate either way. The result line then reads “no PAN penalty rate”. No other change is made, and the tool does not check whether a PAN is valid.

Why does the salary option show no amount?

Salary is deducted according to the employee’s slab, which depends on yearly income and declarations this tool does not collect. For that option it prints Section 192, a note about using an income tax estimate divided by 12, and the payment amount. It does not give a TDS figure.

What happens with a zero or negative amount?

The tool returns a single TDS line of ₹0. A blank amount is read as zero. If an unknown payment type is somehow passed in, the code falls back to the professional-fees rule.

What does the tool not take into account?

It does not add surcharge or cess, does not apply a certificate for lower or nil deduction, does not split technical fees from professional fees, does not combine several payments, and does not cover payees who live outside India. Due dates and filing steps are not part of it either.