Tax deducted at source is income tax withheld by the payer when making certain payments. The payer deposits it against the payee's PAN, and the payee claims the credit in their income tax return.

How is TDS calculated?

The rate prescribed for that payment type is applied to the amount liable to deduction. Where a threshold applies, no deduction arises until the payment or the yearly aggregate crosses it.

Which TDS rate should I use?

It depends on the section governing the payment — contracts, professional fees, rent, interest, commission and salary all differ, as does the payee's status. Confirm the current rate before deducting.

Is TDS an additional tax?

No. It is an advance collection of tax already owed. If the total deducted exceeds the payee's liability, the excess is refundable after filing a return.

Does the threshold apply per invoice or per year?

Most thresholds apply to aggregate payments to the same payee in a financial year. Enter the aggregate rather than a single invoice for a realistic estimate.

What happens if the payee has no PAN?

The Income Tax Act provides for deduction at a higher rate where PAN is not furnished. Confirm the applicable rate for your case and enter it here.

Does this calculator cover every TDS situation?

No. It is a focused estimate based on the rate, threshold and basis you provide. It does not handle surcharge, cess, non-resident provisions, salary computation or lower-deduction certificates.

TDS Calculator

Estimate tax deducted at source on a payment using the amount, the applicable rate and the threshold that applies to it.

Under 20 seconds

Updated 8 Sept 2026

Estimated TDS

₹20,000

At 10% on ₹2,00,000.

Net payment to payee

₹1,80,000

Gross payment less estimated TDS.

Amount TDS applies to

₹2,00,000

The full payment, because the threshold is crossed.

Effective rate on payment

10%

TDS as a share of the gross payment.

A TDS calculator estimates the tax to be deducted from a payment by applying the applicable rate to the amount, once the relevant threshold is crossed. Actual TDS depends on the Income Tax provisions for that payment type, the payee's status, PAN availability, exemption certificates and annual aggregation, so treat this as a first estimate rather than a compliance figure.

Visual breakdown

A visual view of your calculation.

Interactive charts arrive here soon.

Deduction working

Each step from gross payment to net amount payable.

Each step from gross payment to net amount payable.
Step	Amount
Gross payment	₹2,00,000
Threshold limit	₹0
Threshold crossed	Yes
Amount TDS applies to	₹2,00,000
TDS at 10%	₹20,000
Net payment	₹1,80,000

Smart Insights

Generated from the numbers you entered — no guesswork.

TDS of ₹20,000 reduces the payment to ₹1,80,000.
TDS is not an extra tax. It is credited against the payee's total tax liability and can be claimed in their return.
Thresholds usually apply to aggregate payments in a financial year, not to a single invoice — check earlier payments to the same payee.
Where PAN is not furnished, a higher rate can apply under the Income Tax Act. Confirm the correct rate before deducting.

What is the TDS Calculator?

What the tool does, who it is for and what it cannot tell you.

Tax deducted at source is tax collected when a payment is made rather than at the end of the year. The payer withholds a prescribed percentage, deposits it against the payee's PAN, and pays out the balance. The payee then claims that credit in their income tax return.

This calculator answers the practical question a payer or payee faces: given this amount, this rate and this threshold, how much is withheld and how much is actually received? It shows the working step by step so the figure can be checked.

It is deliberately a focused first version. It does not identify which section applies to your payment, look up rates, aggregate payments across a financial year, or handle surcharge, non-resident provisions or lower-deduction certificates.

How does the TDS Calculator work?

Each step the calculator runs, in plain language.

1
Test the threshold
If the payment does not exceed the threshold you entered, the estimated deduction is nil.
2
Decide the liable amount
Depending on the basis you select, TDS is computed on the full payment or only on the portion above the threshold.
3
Apply the rate
The rate you enter is applied to the liable amount to give the deduction.
4
Show the net payment
The deduction is subtracted from the gross payment, and the effective rate on the whole payment is shown for comparison.

What to enter in each field

The exact figure each input expects, so the result means what you think it means.

Payment amount: The gross amount before deduction. If the threshold applies to yearly aggregate payments, enter the aggregate for that payee.
Applicable TDS rate: Look up the rate for that payment type and payee status. Rates differ for contracts, professional fees, rent, interest, commission and salary.
Threshold limit: The limit below which no deduction is required for that section. Enter 0 where no threshold applies.
Deduction basis: Some sections require deduction on the whole amount once the threshold is crossed; others only on the excess. Choose the one that matches the section.

TDS Calculator formula

The exact maths behind every number on this page.

TDS = applicable rate × amount liable; amount liable = 0 if payment ≤ threshold, else full payment or the excess over the threshold

Payment: Gross amount payable before deduction
Rate: Rate notified for that payment type and payee status
Threshold: Limit below which no deduction is required

Which threshold and basis apply depends on the section governing the payment. This tool applies whichever rate, threshold and basis you select.

TDS Calculator calculation example

A ₹2,00,000 professional fee with a 10% rate and a ₹50,000 annual threshold.

1Gross payment₹2,00,000
2Threshold₹50,000 — crossed
3BasisFull amount
4TDS10% of ₹2,00,000 = ₹20,000

₹20,000 is deducted and deposited, and ₹1,80,000 is paid to the payee.

Important assumptions

What this calculation includes, and what it leaves out.

The rate, threshold and basis are whatever you enter. The calculator does not determine which section, rate or threshold applies to your payment.
Actual TDS depends on the Income Tax provisions in force, the payment type, the payee's residential status and PAN, exemptions and any lower or nil-deduction certificate.
Surcharge, cess, non-resident provisions, higher rates for missing PAN and specified-person rules are not modelled.
Thresholds often apply to aggregate payments in a financial year. Entering a single invoice can understate the deduction due.
This tool does not cover every TDS situation and is not a substitute for professional or statutory guidance.

Benefits

Why people use this calculator before signing a loan.

Check a deduction quickly
Verify a withheld amount on an invoice or payment advice in seconds.
See the net receipt
Know what actually lands in the bank before agreeing payment terms.
Transparent working
Every step from gross to net is displayed, so the number can be questioned.

Financial tips

Practical guidance to act on your result.

Check the payee's PAN before deducting — a missing PAN can attract a higher rate.
Track cumulative payments to each payee across the year, not just the current invoice.
Deposit deducted tax by the due date and file the quarterly statement, so the payee gets their credit.
Payees should reconcile deductions against their annual information statement before filing.

Frequently asked questions

Short, direct answers to the questions we hear most.

Guides that explain how to use this calculation in a real decision.

Taxes • 7 min read

New vs old tax regime: a decision checklist

Deductions, slabs and break-even levels explained without the jargon — then compared on your own numbers.

Read guide

Keep planning with tools that pair well with this one.

Income Tax Calculator

Estimate your tax under the old and new regimes instantly.

HRA Calculator

Estimate exempt and taxable HRA from rent and salary details.

GST Calculator

Add or remove GST with accurate inclusive and exclusive splits.

CTC to In-Hand Salary Calculator

Turn annual CTC into estimated monthly take-home pay.

Disclaimer

CalPaisa calculators are for general information and planning only. Results are estimates based on the values you enter and standard formulas, and may differ from the figures your bank, employer, or tax authority applies. Nothing here is investment, tax, or legal advice. Please confirm important decisions with a qualified professional. Read our financial disclaimer, learn how CalPaisa works, or tell us about a calculation you think is wrong.

Enter your details

Results dashboard