Calculate applicable TDS on payments to ensure accurate tax deduction and compliance.
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What is TDS
TDS, or Tax Deducted at Source, is a specific amount that is reduced when a payment is made. For example, when a business pays professional fees, or a tenant pays rent, they deduct TDS before the money reaches the recipient.
Quicko's free online TDS calculator works for both resident and non-resident recipients. Enter the payment type, amount, and recipient details — and instantly see the TDS deducted and the net amount payable.
What is the purpose of TDS?
TDS was introduced under the Income Tax Act to ensure early and continuous collection of tax throughout the year. Rather than waiting until a taxpayer files their return, the government collects tax at the point of payment — reducing tax evasion and giving the Income Tax Department real-time visibility into income flows.
Why is calculating TDS important?
Calculating TDS matters differently depending on which side of the payment you're on.
If you're the payer (deductor): Deducting the wrong amount — or missing it entirely — can attract interest on the shortfall and disallow part of your business expense. Getting it right before the payment is made avoids both.
If you're the recipient (deductee): Knowing the TDS upfront lets you plan the net amount you'll actually receive, avoid surprises, and reconcile TDS credits when filing your return.
Accurate TDS calculation ensures compliance with income tax laws and helps avoid interest or penalties.
What payment types does the calculator cover?
Quicko's online TDS calculator automatically applies the correct rate and threshold for each payment type — no manual rate lookup needed. It supports:
Salary: TDS based on applicable income tax slab
Rent: for land, building, plant, or machinery
FD and bank interest: with separate thresholds for senior citizens
Dividend income: from companies and mutual funds
Professional fees: for doctors, lawyers, consultants, and similar
Freelance and contractual payments: to individuals, firms, or companies
It works for both resident and non-resident recipients, and handles the PAN availability rule automatically.
TDS on payments to non-residents
When the recipient is a non-resident, TDS rules are different from domestic payments. Rates are generally higher, and the applicable amount includes surcharge and Cess on top of the base TDS rate.
Quicko's calculator applies the correct rate, surcharge, and cess for non-resident recipients automatically based on the payment type you select.
How to use the online TDS Calculator
Follow these simple steps to calculate your TDS using our online TDS calculator:
Select the Residential Status of Recipient: Resident or Non-Resident
Choose the Recipient Type: Individual, HUF, Sole Proprietor, or Others
Select the Payment Type: Rent, dividend, interest, professional fees, freelance income, etc.
Enter the Payment Amount
Get the applicable TDS rate, TDS amount, and net amount payable instantly.
Note: If the recipient’s PAN is not available, enable the option “Recipient’s PAN not available”. In such cases, TDS is deducted at a higher rate as prescribed under the Income Tax Act.
How is TDS calculated?
TDS calculation depends on several factors:
Nature of payment
Recipient type
Residential status (resident or non-resident)
Applicable threshold limits
Availability of PAN
TDS Formula
TDS Amount = Payment Amount × Applicable TDS Rate
Example
Suppose professional fees of ₹2,00,000 are paid to an individual consultant who is a resident and has provided PAN.
Details
Payment Amount: ₹2,00,000
Threshold Limit: ₹50,000
Applicable TDS Rate: 10%
Calculation
TDS amount deducted: ₹2,00,000× 10% = ₹20,000
Net amount payable: ₹2,00,000− ₹20,000= ₹1,80,000
Result
TDS Deducted: ₹20,000
Net Amount Paid: ₹1,80,000
