TDS Calculator

Instantly estimate Tax Deducted at Source (TDS), net payment amounts, and account for specific scenarios like invalid PAN or surcharge brackets.

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Surcharge & Cess (Optional)

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0% 37%
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0% 10%
Net Payment to Payee
₹0
The exact amount to be transferred after TDS.
Total TDS Deducted
₹0
Amount to deposit to Govt.
Effective TDS Rate
0%
Includes surcharge & cess

Comparative Compliance Analyzer

Compare your current TDS setup against the scenario where a Valid PAN is NOT provided (Section 206AA applicability).

Payment Breakdown

Gross vs Net Overview

Saved TDS Scenarios

Store your custom TDS configurations securely in your local browser environment to compare later.

Scenario Label Section & Payee Gross Amount TDS Deducted Net Payment Actions
No saved scenarios in this browser. Configure your parameters above and click "Save Scenario".

1. Understanding Tax Deducted at Source (TDS)

Tax Deducted at Source (TDS) is a system introduced by the Income Tax Department, where a person responsible for making specified payments is liable to deduct tax at source and remit it to the Central Government. It helps combat tax evasion and ensures a steady stream of revenue for the government.

CHECK OUT OUR INCOME TAX CALCULATOR

2. Why PAN Status Matters (Section 206AA)

Under Section 206AA of the Income Tax Act, if a deductee fails to furnish their Permanent Account Number (PAN) to the deductor, the deductor must withhold tax at a higher rate. This rate is usually the highest of the following: the rate specified in the relevant provision, the rate in force, or 20%. Using our tool, you can visualize exactly how failing to provide a PAN affects the final net payment.

3. Surcharge and Health & Education Cess

In addition to the base TDS rate, certain payments—especially those made to non-residents, foreign companies, or high-earning individuals (such as salary payments)—may attract an additional surcharge and Health & Education Cess. The cess is typically applied on the TDS amount (including surcharge), slightly increasing the effective deduction percentage.

Frequently Asked Questions

What is the TDS rate for professional services (194J)?

Under Section 194J, the standard TDS rate for professional or technical services is 10%. However, there are exceptions; for example, payments for technical services or royalty for cinematography films may attract a lower rate of 2% in some circumstances. If no PAN is provided, it jumps to 20%.

Does a company have a different TDS rate for contractors (194C)?

Yes. Under Section 194C, if the payment is made to an Individual or Hindu Undivided Family (HUF), the TDS rate is 1%. If the payment is made to any other entity, such as a Company or Firm, the TDS rate is 2%.

How do I calculate TDS manually?

To calculate manually, determine the base rate for the section. Calculate: Base TDS = Gross Payment x (Base Rate / 100). If surcharge and cess apply, calculate Surcharge = Base TDS x (Surcharge% / 100). Then calculate Cess = (Base TDS + Surcharge) x (Cess% / 100). Total TDS = Base TDS + Surcharge + Cess. Our calculator handles this nested math automatically.