Find the TDS (Tax Deducted at Source) amount held back from a payment.
The payer withholds a percentage of the payment and deposits it with the tax department on the payee's behalf.
TDS: Payment × TDS rate ÷ 100
Tax Deducted at Source is income tax collected at the moment a payment is made. The payer keeps back a percentage and deposits it with the government in your name. This calculator applies a TDS rate to a payment and shows the amount deducted and the net amount you actually receive.
It is used by freelancers, consultants, landlords and contractors to check a client's or tenant's deduction, and by small businesses to work out how much to deduct before paying a vendor. A freelance translator in Kolkata who bills ₹60,000 wants to know why only part of it arrived in her bank. The calculator answers: how much was held back as TDS, and what is the net payment?
1. Identify the type of payment, since the TDS rate depends on it and on the payee's status.
2. Look up the rate notified for that payment type and write it as t%.
3. TDS = payment × t ÷ 100.
4. Net payable to the payee = payment − TDS.
5. The payer deposits the TDS with the government and issues a TDS certificate.
6. The payee checks that the TDS appears in their tax statement and claims it against their final tax.
TDS is a way of collecting tax early, spread through the year, rather than waiting for the return. When you file your return, you work out your total tax on all income and subtract the TDS already deducted. If TDS is more than your tax, you get a refund. If it is less, you pay the balance. So a freelancer whose income is below the taxable limit can claim all TDS back, while one in a high slab may owe more.
Rates are set in the income tax law for each type of payment, such as salary, rent, professional fees, contract work, commission or interest. Many payments are subject to TDS only above a threshold. A higher rate usually applies if the payee does not furnish a PAN. Rates and thresholds are notified by the government and change from time to time, so check the rate that applies to your payment and year before relying on the calculation.
When an invoice shows GST separately, TDS under income tax is generally worked out on the amount excluding GST. The GST is a tax the supplier collects for the government, not income. So a consultant who bills ₹60,000 plus GST usually has TDS worked out on ₹60,000, while the GST is paid in full. This calculator applies the rate to whatever amount you enter, so enter the pre-GST value when this rule applies.
Ananya, a freelance translator in Kolkata, raises an invoice of ₹60,000 for a project. Her client deducts TDS at the 10% rate stated on its deduction certificate before paying her.
Answer: TDS deducted ₹6,000; Net payable ₹54,000
Treating TDS as a final tax and not claiming it in the return.
Calculating TDS on the GST-inclusive amount when GST is shown separately.
Not providing a PAN, which usually triggers a higher rate.
Not checking the tax statement to confirm the deducted amount was deposited against your PAN.
Confusing TDS with GST. They are separate taxes under different laws.
Freelancers checking deductions on client payments.
Businesses computing net amounts to pay vendors.
Landlords estimating the net rent received after TDS.
Reconciling TDS certificates with invoices at year end.
Is TDS the same as GST?
No. TDS is a way of holding back income tax from payments like rent, professional fees, or interest. It has nothing to do with GST, which is a tax on the sale of goods and services.
What TDS rate applies to my payment?
It depends on the type of payment — salary, rent, professional fees, contractor payments, and so on — under the Income-tax Act. Check the section that applies to your case.