Introduction
TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax before making payment to the recipient. It ensures tax collection at the source of income, covering salary, rent, professional fees, interest, and contractor payments across India.
Numverto TDS Calculator helps you instantly calculate the correct TDS amount for any payment type. Select the section, enter the amount, and get the exact deduction — with or without PAN.
TDS Calculation
TDS = Payment Amount × Applicable Rate. If PAN is not provided, Section 206AA applies and rate is 20% or twice the normal rate, whichever is higher.
Step-by-Step Examples
Professional fees ₹50,000 (Section 194J)
TDS = ₹50,000 × 10% = ₹5,000. Net payment = ₹45,000.
Rent ₹1,00,000/month (Section 194I)
TDS = ₹1,00,000 × 10% = ₹10,000. Net rent paid = ₹90,000.
Real-Life Applications
- Salary TDS calculation for HR and payroll teams
- Contractor payment TDS under Section 194C
- Rent payment TDS deduction planning
- Professional fee payments to consultants and freelancers
- Interest payment TDS compliance for businesses
Advantages of Using This TDS Calculator
- Covers all major TDS sections (192, 194A, 194C, 194H, 194I, 194J)
- PAN/No-PAN rate toggle (Section 206AA)
- Shows applicable section reference
- Net payment calculation after TDS
- Indian rupee formatting
Common Mistakes to Avoid
- Not deducting TDS when payment crosses threshold limit
- Using wrong section for the payment type
- Not applying higher 20% rate when PAN is missing
- Missing TDS on advance payments or part payments
- Not depositing TDS by 7th of following month