1. What is TDS?

TDS (Tax Deducted at Source) is the amount deducted in advance from payments like salary, commission, rent, etc. as per the Income Tax Act. The deductor deposits this amount to the government.

2. How Does the Calculator Work?

The calculator uses the TDS formula:

Where:

• \( rate \) — Applicable TDS rate percentage
• \( payment \) — Gross payment amount before TDS deduction

Explanation: The formula calculates the tax amount to be deducted at source based on the payment amount and applicable rate.

3. Importance of TDS Calculation

Details: Accurate TDS calculation ensures compliance with tax laws, avoids penalties, and helps in proper tax planning for both deductors and deductees.

4. Using the Calculator

Tips: Enter the applicable TDS rate in percentage and the payment amount. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are the common TDS rates for FY 2024-25?
A: Rates vary (1%-30%) depending on payment type and recipient status. Common rates: 10% on rent, 1% on contractor payments, etc.

Q2: When should TDS be deducted?
A: At the time of payment or credit, whichever is earlier, as per the due dates specified in the Income Tax Act.

Q3: What is the due date for TDS payment?
A: Generally by the 7th of the next month (except March, due April 30th).

Q4: Are there any threshold limits for TDS deduction?
A: Yes, most sections have minimum thresholds before TDS applies (e.g., ₹30,000 for rent, ₹50,000 for interest).

Q5: Can I get TDS refund if excess deducted?
A: Yes, by filing your income tax return and claiming refund for any excess TDS deducted.