Tax deducted at source is a particular amount that is reduced when a certain payment - such as salary, rent, commission, interest, and more is made. The individual that makes the payment deducts TDS, while the individual that receives a payment or income has the liability to pay the tax. It lowers tax evasion because the tax is collected at the time of making that payment.

You can calculate how much your TDS or the interest on your TDS through the TDS or TDS interest calculator. This TDS deduction calculator will help you estimate your TDS deduction.

The TDS calculator is a free and online tool that helps you determine whether you need to deduct TDS or not, and if you do, it will show you the TDS amount to be deducted. It enables you to check whether the right amount of TDS has been deducted or provides you with a basic insight into the related TDS rules.

Utilizing the TDS online calculator is simple, and it can be used at any preferred time as many times as needed.

The TDS calculator helps users determine how much TDS is deducted from their salary, allowing them to know their in-hand salary after the deduction. It will assist you in better financial planning and budgeting. The calculator does not require you to sign up or log in. All you need to do is provide some basic information, and the calculator will show you the results within seconds.

The calculator works on an algorithm that provides results in seconds. It eliminates the need for long, tedious processes and reduces the risk of errors compared to manual calculation.

Using the TDS calculator is simple, and all you need to do is enter the following details:

Recipient: Choose the type of recipient you are. For example, an individual, sole proprietor, HUF, or others.

Payment: Enter your payment details in this section.

Nature of Payment: The TDS depends on the nature of the payment, such as salary, FD, etc. You will need to enter this data in the calculator.

The calculator will then show you the results within seconds, indicating whether TDS is deductible or not. If TDS is deductible, it will also show you the amount to be deducted.

The calculation of TDS depends on the nature of the deduction. Below is the formula and procedure for TDS calculation:

Rate of Average Income Tax = Income Tax Payable (computed with slab rates) / Estimated income for the financial year.

Let us look at an example to better understand how this formula works in the calculation of TDS:

If Mr. Ramesh has received a salary of Rs. 1,00,000 in a year (these rates are time-sensitive and change with financial years),

According to Section 192, the TDS on his salary based on the current year's slab rates would be Rs. 1,42,500. After adding 4% education and higher education cess, his net payable tax becomes Rs. 1,48,200.

The average rate on TDS would be = Rs. 1,48,200 / 12,00,000 * 100

= 12.35%

So, the TDS deducted from Mr. Ramesh's salary each month would be 12.35% of 1 lakh, which is:

= Rs. 12,350

The online TDS calculator offers several advantages:

• This calculator will help you estimate the amount you are liable to deduct on a particular transaction.
• It is simple to use and is a handy tool for calculating TDS.
• It provides solutions to the amount and the basic principle rules attached to that specific transaction.
• It assists in checking the TDS deduction and its accuracy.
• You can easily check TDS with just a few clicks.