Calculate Tax Deducted at Source on salary, FD interest, rent & professional fees
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Our TDS Calculator helps you estimate tax deducted at source for various payments. Select the appropriate category (Salary, FD, Rent, or Professional Fees) and enter the details to get accurate TDS calculations.
TDS is deducted at source to ensure tax collection. Different sections apply to different types of payments. Here are the key rates:
What is TDS and why is it deducted?
TDS (Tax Deducted at Source) is a method of collecting income tax at the source of income. The payer deducts tax before making payment to the receiver. This ensures regular tax collection and reduces tax evasion.
When is TDS on salary deducted?
Employers deduct TDS from salary every month based on the employee's estimated annual tax liability. The average rate is calculated by dividing total estimated tax by total estimated salary for the year.
How can I avoid TDS on FD interest?
Submit Form 15G (for non-seniors) or Form 15H (for seniors) if your total income is below the taxable limit. Alternatively, split FDs across banks so interest from each is below the TDS threshold.
What happens if TDS is not deducted?
If the deductor fails to deduct TDS, they may face penalty equal to the TDS amount. If TDS is deducted but not deposited, interest @ 1.5% per month is charged. Always verify TDS in your Form 26AS.
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