TDS/Withholding Tax Calculator 2024-25

Calculate TDS for India with all sections (194C, 194J, 194H, 194I, 194A). Withholding tax for USA, UK, Canada, UAE, Singapore. Salary, interest, contractor, property TDS.

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Common TDS Scenarios

TDS/Withholding Tax Calculation

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India TDS Guide 2024-25

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India TDS Sections & Rates

Section Nature of Payment Threshold Limit TDS Rate (With PAN) TDS Rate (Without PAN) Due Date
192 Salary Basic exemption limit Income tax slab rates Higher of slab rates or 20% Monthly
194A Interest other than securities ₹40,000 (₹50,000 for seniors) 10% 20% Monthly
194C Contractor/sub-contractor payments ₹30,000 per contract (₹1,00,000 yearly) 1% (Individual/HUF)
2% (Others)
20% Monthly
194H Commission/brokerage ₹15,000 5% 20% Monthly
194I Rent ₹2,40,000 p.a. 2% (Land & building)
10% (Machinery/equipment)
20% Monthly
194J Professional/technical fees ₹30,000 2% (Professional services)
10% (Director fees, royalty, etc.)
20% Monthly
194 Dividends ₹5,000 10% 20% When paid

TDS Threshold Limits

  • No TDS if payment below threshold
  • Threshold varies by section
  • Annual limits for some sections
  • Different for senior citizens

PAN Requirement

With PAN: Normal rates apply
Without PAN: Higher of 20% or double rate
Always provide PAN to avoid higher TDS deduction

TDS Return Filing

  • Form 24Q (Salaries)
  • Form 26Q (Non-salary)
  • Form 27Q (NRIs)
  • Quarterly filing required

Global Withholding Tax Rates Comparison 2024

Country Tax Name Dividends Interest Royalties Technical Fees Salary
🇮🇳 India TDS 10% 10-20% 10% 2-10% Slab rates
🇺🇸 United States Withholding Tax 30% (NR: 15-30%) 30% (NR: 0-30%) 30% 30% Federal + State
🇬🇧 United Kingdom PAYE/Withholding 0% (Resident) 20% 20% 20% PAYE system
🇨🇦 Canada Withholding Tax 25% (NR: 15-25%) 25% (NR: 10-25%) 25% 15% CPP + EI + Tax
🇦🇪 United Arab Emirates No TDS 0% 0% 0% 0% 0%
🇸🇬 Singapore Withholding Tax 0% (Resident) 15% 10% 17% CPF system
🇦🇺 Australia PAYG Withholding 30% (NR: 30%) 10% 30% 30% PAYG system
🇩🇪 Germany Withholding Tax 26.375% 26.375% 15% 15% Income tax + solidarity

TDS Calculation Examples & Scenarios

Salary TDS (Section 192)

Annual Salary: ₹12,00,000
Standard Deduction: -₹50,000
80C Investment: -₹1,50,000
Taxable Income: ₹10,00,000
Income Tax: ₹1,12,500
Monthly TDS: ₹9,375

Contractor TDS (Section 194C)

Contract Amount: ₹5,00,000
Contractor Type: Individual
TDS Rate: 1%
TDS Amount: ₹5,000
Net Payment: ₹4,95,000
Note: No TDS if single contract < ₹30,000

Interest TDS (Section 194A)

Interest Income: ₹80,000
PAN Status: Available
TDS Rate: 10%
TDS Amount: ₹8,000
Net Interest: ₹72,000
Note: Threshold ₹40,000 (₹50,000 for seniors)

Frequently Asked Questions (FAQ)

What is TDS and when is it deducted?

TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax before making certain payments like salary, interest, commission, rent, etc. TDS is deducted when:
1. Payment exceeds specified threshold limits
2. Made to residents/NRIs as per Income Tax Act
3. For specified payments under various sections (192, 194A, 194C, etc.)
The deducted tax is deposited with the government by the deductor.

What happens if PAN is not provided for TDS deduction?

If PAN is not provided, TDS is deducted at higher of the following rates:
1. Twice the normal rate specified in the relevant section, OR
2. 20% (whichever is higher)

Example: For Section 194C (contractor payments), normal rate is 1% for individuals. Without PAN, TDS rate becomes higher of 2% (twice of 1%) or 20% = 20%. Always provide PAN to avoid higher TDS deduction.

How can I avoid TDS deduction?

You can avoid TDS deduction by:
1. Submitting Form 15G/15H: For interest income if total income below taxable limit
2. Lower Deduction Certificate: From Income Tax Department if actual tax rate is lower
3. Stay below threshold: Keep payments below specified limits
4. Advance tax payment: If you've paid advance tax
5. NRI declarations: Appropriate forms for non-residents
Note: Salary TDS cannot be avoided; it's calculated as per income tax slabs.

What are the due dates for TDS payment and return filing?

TDS Payment Due Dates:
• For April-February: 7th of next month
• For March: 30th April

TDS Return Filing Due Dates:
• Q1 (Apr-Jun): 31st July
• Q2 (Jul-Sep): 31st October
• Q3 (Oct-Dec): 31st January
• Q4 (Jan-Mar): 31st May

Late payment/filing attracts interest and penalties.

How do I claim TDS credit in my income tax return?

To claim TDS credit:
1. Form 26AS: Check your consolidated tax statement online
2. TDS Certificate: Obtain Form 16 (salary) or Form 16A (non-salary) from deductor
3. ITR Filing: Mention TDS details in appropriate schedules of ITR
4. Verification: Ensure TDS amount in Form 26AS matches your records
5. Claim Credit: TDS is automatically credited if details match

If TDS not reflected in Form 26AS, contact deductor to file correction statement.