Tax Deducted at Source (TDS) is a mechanism where tax is deducted at the point of payment on salary, rent, professional fees, interest income, and many other transactions. This TDS calculator helps you work out your salary TDS, how much interest you owe on late TDS payment or deposit, and how to pay TDS online — so you can stay compliant and plan your cash flows accurately.
What Is a TDS Calculator?
A TDS calculator estimates the amount of tax deducted at source on a specific payment before it is credited to you.
Enter the payment type (salary, rent, interest, professional fees), the gross amount, and PAN status.
The calculator applies the correct TDS section, checks the threshold limit, and shows the TDS rate and net amount received.
This online TDS calculator also covers TDS on salary with the applicable slab rate — not just a flat percentage.
TDS Interest Calculator — Late Payment Under Section 201(1A)
If TDS is deducted late or deposited late, interest applies under Section 201(1A) in two parts: • Interest for late deduction: 1% per month (or part of month) from the date TDS was due to be deducted to the date it was actually deducted.
• Interest for late deposit: 1.5% per month (or part of month) from the date TDS was deducted to the date it was actually deposited with the government.
Formula: Interest = TDS Amount × Rate × Number of months (or part months).Example: TDS of ₹10,000 deducted on 1st March but deposited on 20th April (due date was 7th April): Late deposit = 1.5% × ₹10,000 × 2 months (March counted as 1, April counted as 1) = ₹300 interest payable.
Even a single day's delay counts as a full month — always deposit before the 7th of the following month (April 30 for March deductions).
Section 234E Penalty for Late TDS Return Filing (TDS Late Fee Calculator)
Section 234E levies a fee of ₹200 per day for every day the TDS return (Form 24Q for salary, 26Q for non-salary) is filed late — subject to a maximum of the total TDS amount.
This is separate from the Section 201(1A) interest.
Example: TDS return due on 31st July, filed on 20th August (20 days late).
TDS amount = ₹50,000.
Section 234E fee = ₹200 × 20 days = ₹4,000.Note: Section 271H additionally allows penalty of ₹10,000 to ₹1,00,000 for non-filing — separate from the daily fee.
Always file TDS returns on time to avoid stacking penalties.
Salary TDS Calculator — How Is Salary TDS Calculated?
TDS on salary under Section 192 works differently from other TDS sections — there is no fixed flat rate.
Instead, your employer estimates your total annual taxable salary, applies the income tax slab rates (old or new regime, as declared by you), subtracts applicable deductions, and divides the annual tax liability by 12 to arrive at monthly TDS.
Formula: Monthly TDS = (Annual Tax Liability − Tax already deducted in earlier months) ÷ Remaining months in financial year.This is recalculated each month as salary or declarations change.
To reduce salary TDS: submit investment proofs (80C, 80D, HRA, home loan interest) to your employer before February — missing this means excess TDS and waiting for an ITR refund.
How to Pay TDS Online — Step-by-Step
TDS is paid online through the Income Tax e-filing portal (incometax.gov.in) or NSDL portal using Challan 281: 1.
Go to incometax.gov.in → e-Pay Tax → New Payment.
2.
Select Challan 281 (TDS/TCS Payable by Taxpayer).
3.
Enter your TAN (Tax Deduction Account Number) — not PAN.
4.
Select the correct Nature of Payment (e.g., 192 for salary, 194I for rent).
5.
Enter TDS amount + Section 201(1A) interest if applicable.
6.
Choose your bank and complete payment via net banking.
7.
Save the challan counterfoil — you will need the BSR code and challan number when filing the TDS return.
Deadline: 7th of the following month.
Exception: March deductions must be deposited by 30th April.
Key TDS Sections and Rates
Section 192 Salary: slab rate (no fixed percentage).
Section 194A Bank FD interest: 10% above ₹40,000/year (₹50,000 for senior citizens).
Section 194C Contractor payments: 1% (individual/HUF), 2% (others), above ₹30,000/payment or ₹1L/year.
Section 194H Commission or brokerage: 5% above ₹15,000/year.
Section 194I Rent: 10% (land/building/furniture) above ₹2.4 lakh/year; 2% (plant/machinery).
Section 194J Professional/technical fees: 10% above ₹30,000/year.
Section 194Q Purchase of goods: 0.1% above ₹50L/year.
No PAN provided: TDS at 20% or applicable rate, whichever is higher.
How to Avoid Excess TDS Deduction
For FD interest: Submit Form 15G (below 60 years) or Form 15H (senior citizens) to your bank at the start of each financial year if your total income is below the taxable limit — check the exact interest threshold on our FD calculator.
For salary: Declare all deductions (80C, HRA, home loan, 80D) to your employer in April and update them through the year.
For professional payments: If your estimated annual income is below the taxable limit, apply for a Lower/Nil TDS certificate (Form 13) from the Income Tax Department — the deductor must then use the reduced rate on your certificate.
TDS Compliance Checklist for Deductors
Deduct TDS at the time of payment or credit, whichever is earlier.
Deposit TDS by 7th of the following month (30th April for March).
File TDS return quarterly: Q1 by 31st July, Q2 by 31st October, Q3 by 31st January, Q4 by 31st May.
Issue TDS certificates: Form 16 (salary) by 15th June; Form 16A (non-salary) within 15 days of return filing due date.
Reconcile Form 26AS quarterly — discrepancies between your return and Form 26AS cause ITR mismatches for deductees.
Frequently Asked Questions
What is the interest rate for late TDS payment?
Under Section 201(1A), two rates apply: 1% per month (or part of month) for late deduction — from when TDS should have been deducted to when it was actually deducted. 1.5% per month (or part of month) for late deposit — from when TDS was deducted to when it was deposited with the government. Both can apply simultaneously if TDS was both deducted late and deposited late. Even one day's delay counts as a full month.
How do I calculate TDS late payment interest?
Formula: Interest = TDS Amount × Rate × Months delayed. Example: ₹20,000 TDS deducted on time (1st March) but deposited on 25th April instead of 7th April: Months delayed = 2 (March = 1 month, April = 1 month — part month counts as full). Interest = ₹20,000 × 1.5% × 2 = ₹600. Pay this along with the principal TDS using Challan 281 — select 'Interest' under the relevant minor head.
How is TDS on salary calculated?
TDS on salary (Section 192) uses the income tax slab rates — there is no single flat rate. Your employer estimates your full-year taxable salary, deducts exemptions (HRA, LTA, standard deduction of ₹75,000 under the new regime), and subtracts declared investments (80C, 80D, etc.). The resulting annual tax is divided by 12 to give monthly TDS. Submit your investment declarations to your employer early in the financial year to avoid over-deduction.
How do I pay TDS online?
Pay TDS via Challan 281 on the Income Tax e-filing portal (incometax.gov.in → e-Pay Tax). You need your TAN (not PAN), the correct TDS section, and net banking access. Save the BSR code and challan serial number from the counterfoil — these are mandatory when filing your quarterly TDS return. The due date is the 7th of every month (30th April for March deductions).
What is the penalty for not filing TDS return on time?
Section 234E levies ₹200 per day (up to the TDS amount) for late TDS return filing. Additionally, Section 271H allows the Assessing Officer to impose a penalty of ₹10,000 to ₹1,00,000 for non-filing. Both the daily fee and the discretionary penalty can apply together — always file quarterly TDS returns on time.
How do I get a refund if excess TDS is deducted?
File your Income Tax Return (ITR) and claim the excess TDS as a refund. The refund is processed by the Income Tax Department and credited directly to your pre-validated bank account — typically within 30–90 days of ITR processing. Ensure your Form 26AS shows the correct TDS credit before filing, as mismatches delay refunds.
What is the TDS rate if PAN is not provided?
If the deductee does not provide a PAN, TDS is deducted at 20% or the normal applicable rate — whichever is higher. This applies across all TDS sections. Always share your PAN with every payment source (bank, employer, client) to avoid excess deduction.
What is Form 26AS and why does it matter?
Form 26AS is your consolidated annual tax statement from the Income Tax Department. It shows all TDS deducted on your income by all deductors, advance tax paid, and self-assessment tax deposited. Always reconcile Form 26AS with your Form 16/16A before filing ITR — if a deductor has not deposited TDS, it will not appear in 26AS and you cannot claim that credit until they deposit it.
Is TDS applicable on GST component of invoices?
No. TDS under Income Tax is deducted only on the base invoice amount, excluding the GST component. CBDT has clarified this via circular. However, TDS under GST (TDS-GST at 2%) is a separate provision applicable to specified government and PSU payments — it is independent of Income Tax TDS.
What is a Lower TDS Certificate (Form 13)?
If your actual tax liability is lower than the TDS rate being applied — common for professionals, landlords, or NRIs — you can apply to the Income Tax Officer for a Lower or Nil TDS Certificate under Section 197 using Form 13. Once issued, the deductor must apply the lower rate specified in the certificate instead of the standard rate. This avoids over-deduction and waiting for an ITR refund.
Is TDS deducted on mutual fund redemptions?
For resident Indians, no TDS is deducted on mutual fund redemptions — you pay capital gains tax when filing your ITR. For NRIs, TDS applies: 20% on equity fund LTCG (held > 1 year), 30% on STCG (held ≤ 1 year), and at slab rate for debt fund gains.