TDS (Tax Deducted at Source) is a method of collecting income tax at the source of income. The payer deducts a percentage of payment and deposits it with the government on behalf of the payee.

What are common TDS rates?

Salary: slab rates (10-30%). Rent under 194I: 10% (if >₹2.4L/year). Interest: 10%. Commission: 5%. Contractor payments: 1%/2%.

Is TDS the same as income tax?

TDS is a mechanism to collect income tax in advance. The final tax liability is computed when filing ITR. TDS can be claimed as credit against total tax due.

TDS Calculator - TDS on Salary, Rent, Interest

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About TDS

TDS (Tax Deducted at Source) is collected at the time of payment. Different sections apply for different payment types. PAN is required for lower TDS rates.

TDS Rates Quick Reference

Salary (192)
Slab rates 10-30%

Rent (194I)
10% if >₹2.4L/yr

Interest (194A)
10%

Commission (194H)
5%

Contractor (194C)
1% (Individual) / 2%

Frequently Asked Questions

What if PAN is not provided?

TDS is deducted at 20% or the applicable rate, whichever is higher, if PAN is not furnished.

Can I claim TDS refund?

Yes, if TDS deducted exceeds your actual tax liability, you can claim a refund by filing ITR.

Is TDS applicable on rent below ₹2.4 lakh?

No, TDS under Section 194I is not applicable if annual rent is ₹2,40,000 or below.

✅ Do's and ❌ Don'ts

✅ Do's

✅ Do provide PAN to avoid higher TDS rates.
✅ Do file Form 15G/15H if income is below taxable limit.
✅ Do claim TDS credit while filing income tax return.
✅ Do verify TDS certificates (Form 16/16A) from your deductor.

❌ Don'ts

❌ Don't ignore TDS — it's mandatory for specified payments.
❌ Don't forget to deposit TDS by the 7th of next month.
❌ Don't assume TDS is your final tax — file ITR to reconcile.
❌ Don't delay filing — penalties apply for late TDS returns.