What Is a TDS Calculator?
A Tax Deducted at Source (TDS) calculator is a tool used in India to figure out how much tax would be deducted from various sources of income, including salary, interest, rent, etc., at the source. Instead of waiting until the end of the fiscal year, the TDS system enables the government to collect taxes as they are generated.
Calculate Your TDS Amount Online for FREE
Understanding TDS or Tax Deducted at Source
TDS, or Tax Deducted at Source, is a form of advance tax that applies to the following income types:
- Interest payments by bank
- Commission payment
- Rent payment
- Consultation fees
- Professional fees
The Flexi Payment online TDS Calculator simplifies your life by saving time and effort on complex tax calculations and helping you understand how much income you should expect. The Flexi Payment TDS calculator is a free tool for anyone who needs it. It will compute the final TDS amount based on the input provided by the user.
Here is an example to help you understand better:
Suppose your current monthly salary is ₹1,00,000, or ₹12,00,000 annually. The TDS calculated based on the ongoing income tax slab under Section 192 is ₹142,500. A 4% education and higher education cess is added to the calculation, and the total payable tax comes to ₹1,48,200.
The average tax rate would be ₹(148,500/12,00,000) *100 = 12.35%. So, the TDS deducted from your monthly salary is ₹12,350.
How does TDS calculator work?
TDS calculator guides you about the amount which is subjected to be deducted from your specific transactions. On the basis of the nature of transaction and recipient, TDS amount is calculated on certain basic details. There are several steps to calculate TDS amount which are given below- Firstly, You need to choose the type of recipient. If it is an individual, HUF or sole proprietor or any other company. You need to select one of these and fill out the selected option. In the next bar, You have to select the option between yes or no. Choose option yes only in case, If you already have the PAN of the person whose TDS is to be deducted. Fill out the amount to payment of the recipient and select at the last nature of transactions. That’s all you have to do and now your required amount of TDS to be deducted is available to you.
What are the benefits of a TDS calculator?
TDS calculator gives its users an accurate insight to calculate the liable TDS amount to be deducted. It makes them aware of the basic rules and principles, applied on specific transactions. Users of TDS calculator can probe if the TDS deduction done is accurate or not. TDS calculator works on your one click and it saves your precious time, energy and makes the whole process easy and reliable.
How is interest on TDS calculated?
To calculate the interest on late payment of TDS, the formula is:
Interest = TDS amount * Interest rate * Number of months
Example calculation: Let’s assume a TDS amount of Rs. 50,000 is due for deposit on April 7th, 2023, but it is deposited on May 20th, 2023.
Step 1: Calculate the number of months (including part of a month) for which interest is applicable.
- April: 1 month
- May: 1 month (even for the Part)
Step 2: Calculate the interest.
- Interest rate = 1.5% per month
- Interest Payable = Rs. 50,000 * 1.5% * 2 months = Rs. 1,500
FAQs TDS Calculator
TDS amount is determined by applying applicable rate to credit/payment amount as per section. Net Payment = Payment Amount – TDS
TDS is to be deposited by the 7th of every month for payments made in the previous month, 30th of April in case of payments made in March. For payment made on 15th January, TDS must be deposited by 7th February.
TDS must be calculated and deducted on payment made to purchase the property if: 1. Payment exceeds Rs. 50 Lacs 2. At 1% deduction rate 3. TDS must be deposited within 30 days
Salary income is charged at slab rate and TDS is deducted by calculating average rate. Average Rate of Tax on Salary= Total Tax * 100/Total Income
To calculate the TDS you need to deduct on payments:
- Select deductee type
- Select the residential status of the deductee
- Enter the type of payment to select the applicable section:
- Enter the payment date
- Enter the payment amount
- Select if PAN of the deductee is available or not