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TDS Calculator

Can't figure out how to calculate your taxes?

You don't need to worry. Vakilsearch is here to help.

Financial year: 2022 - 2023

Individual
Section 192A - Payment of accumulated PF balance to an employee

TDS Amount

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Avoid tax losses

Overview on TDS Calculator

A TDS calculator can assist you in determining whether you need to deduct TDS and what amount to deduct. Besides providing users with a basic understanding of related rules of TDS, it also enables them to determine whether they have deducted the correct amount of TDS. Calculate TDS instantly and accurately. Using the Vakilsearch TDS calculator, you can save taxes and plan your finances very well. This calculator is very useful for Individuals, HUFs, Sole Proprietors and others.

TDS

TDS stands for Tax Deducted at Source. Before paying for any service or job, the payer deducts tax as part of the payment. Individuals and businesses are both required to pay TDS. An employer must cut a certain percentage of an employee's salary as TDS before paying the salary. Afterwards, the employer must deposit the money with the government.

Other types of payments are also subject to TDS, including rent, commissions, interest payments by banks, professional fees, consultation fees, etc. Companies and institutions are required to deduct this tax and deposit it with the Income Tax Department within a specified time period.

Tax is not deducted at source from rent payments or fees paid to professionals. Regularly, TDS is paid to the central government as an advance tax. Payers are responsible for making payments. When filing your annual returns, you can claim TDS deducted from your payment.

How TDS on Salary Is Computed

The employer calculates TDS by estimating the net taxable salary and deducting it from it. The net salary income is calculated by subtracting the tax-free allowances and exemptions from the gross salary. Once you declare tax-saving investments and expenses under Section 80C, 80D, or other sections, they will be deducted from your salary income. The salary is increased if you declare other income. The TDS is then deducted based on the slab in which your net taxable income falls.

How Does the TDS Calculator Work?

Using a TDS calculator, you can estimate how much you will be required to deduct from a specific transaction. You can use it to calculate the amount of TDS based on the recipient type and the transaction's nature.

Here are the steps you need to follow to calculate TDS:

  • Select the type of recipient - individual, sole proprietor, HUF, company, etc.

  • Select yes if the person for whom TDS is to be deducted has a valid PAN, otherwise, choose no.

  • Amount to be paid to the recipient

  • Method of payment

It's that simple. Now you know how much TDS you need to deduct.

Benefit of using TDS Calculator

  • It gives you both the solution of how much tax you are liable to deduct as TDS and the basic principle or rule that applies to that particular transaction.

  • It allows users to check if the TDS deductions they made are accurate or not.

  • One-click is all it takes to access it.

FAQs on TDS Calculation