Gross Amount:
₹0.00
TDS Rate:
0%
TDS Deducted:
₹0.00
Net Amount Received:
₹0.00
Understanding TDS: Salary vs Non-Salary Income
Salary Income (Section 192)
TDS on salary is deducted by employers based on estimated annual income and applicable tax slabs. The rate varies according to the employee's total income and chosen tax regime (old or new).
Key Features:
- Deducted monthly by employer
- Based on projected annual income
- Can submit investment proofs for deductions
- Form 16 issued annually
Non-Salary Income
TDS on non-salary income has fixed rates based on the nature of payment. These rates are predetermined and apply uniformly regardless of the recipient's total income.
Common Sections:
- Section 194J: Professional services (10%)
- Section 194C: Contractors (1-2%)
- Section 194I: Rent (2-10%)
- Section 194H: Commission (5%)
Section-Wise TDS Rates (FY 2024-25)
Here are the current TDS rates applicable to different types of income:
- Section 192 (Salary): As per Income Tax Slabs (0% to 30%)
- Section 194J (Professional Services): 10% (2% for technical services)
- Section 194C (Contractors): 1% for individuals/HUF, 2% for others
- Section 194I (Rent): 2% for plant/machinery, 10% for land/building
- Section 194H (Commission): 5%
- Section 194A (Interest): 10%
- Section 194 (Dividend): 10%
- Section 194B (Lottery): 30%
How to Use This TDS Calculator
Our TDS calculator helps you quickly determine the tax deducted at source and your net receivable amount:
- Select Income Type: Choose the category that matches your income source
- Enter Amount: Input the gross amount before TDS deduction
- Custom Rate (Optional): If selecting "Custom Rate", enter your specific TDS percentage
- Calculate: Click the calculate button to see your TDS amount and net receivable
Important TDS Considerations
When dealing with TDS, keep these important points in mind:
- PAN Requirement: Higher TDS rate (20%) applies if PAN is not provided
- Threshold Limits: TDS is deducted only when payment exceeds specified limits
- Form 26AS: Check your Form 26AS to verify TDS credits
- TDS Refund: Claim refund if TDS exceeds actual tax liability while filing ITR
- Advance Tax: TDS is considered as advance tax payment
- Lower Deduction: Apply for lower/nil TDS certificate from Income Tax Department if eligible
Frequently Asked Questions (FAQs)
What is TDS and why is it deducted?
TDS (Tax Deducted at Source) is a mechanism where tax is collected at the source of income generation. It ensures regular tax collection and reduces tax evasion. The deductor deducts tax before making payment and deposits it with the government on behalf of the recipient.
Can I get a refund if excess TDS is deducted?
Yes, if the TDS deducted exceeds your actual tax liability, you can claim a refund by filing your Income Tax Return (ITR). The excess amount will be refunded to your bank account after processing your return.
What happens if TDS is not deducted?
If TDS is not deducted when required, the deductor may face penalties and interest charges. However, as a recipient, you are still liable to pay tax on that income while filing your ITR, even if TDS was not deducted.
How do I check if my TDS has been deposited?
You can check your TDS credits in Form 26AS, which is available on the Income Tax e-filing portal. Form 26AS shows all TDS deducted and deposited against your PAN. You can also check the Annual Information Statement (AIS) for comprehensive tax information.
Is TDS applicable on freelance income?
Yes, TDS is applicable on freelance or professional income under Section 194J at 10% (or 2% for technical services). If you're working as a freelancer and earning above the threshold limit, your clients should deduct TDS before making payment.
What is the difference between TDS and TCS?
TDS (Tax Deducted at Source) is deducted on income payments, while TCS (Tax Collected at Source) is collected by sellers on certain goods at the time of sale. TDS applies to income receipts, whereas TCS applies to sales transactions for specific items like scrap, minerals, luxury cars, etc.