About tds calculator
Tax Deducted at Source (TDS) means tax is deducted when a payment is made, such as rent, professional fees or commission. The deductor deposits it with the government.
Common payments
- Rent, professional or technical fees and contractor payments.
- Commission and brokerage.
- Each has its own rate and threshold limit.
Practical points
- TDS is credited against your tax liability and appears in Form 26AS and the AIS.
- If the payee has no PAN, a higher rate applies.
- The deductor must deposit the tax and file TDS returns by the due dates.
A worked example
If a freelancer is paid ₹1,00,000 in professional fees and the applicable rate is 10 percent, the payer deducts ₹10,000 and pays ₹90,000, then deposits the ₹10,000 with the government. The freelancer claims credit for it when filing a return.
Check your credits
Look at Form 26AS or the Annual Information Statement to confirm that deductors have deposited the tax against your PAN.
