TDS Calculator

TDS, or tax deducted at source, is deducted when making certain payments, such as rent, salary, interest, commission, and more. The TDS is deducted from the individual who is making the payment, while whoever receives the payment is liable to pay the tax. TDS helps in lowering tax evasion as it is collected at the time of making a payment.

Using BlinkX’s TDS calculator or TDS interest calculator, you can estimate your TDS deduction.

What is the TDS Calculator?

The TDS calculator is a free online tool that helps you to calculate whether to deduct TDS and how much TDS to deduct. Using the TDS calculator, you can check the correct amount of TDS deduction and gain basic insight into the TDS rules.

Our TDS online calculator is simple to use and can be used anytime, checking unlimited combinations.

How Does the TDS Calculator Help You?

Using the TDS calculator can help you in several ways, such as:

• An individual can calculate how much TDS is deducted from the salary and get the in-hand salary after the deduction.
• You can use the TDS calculator to plan your finances and budget.
• You can get your TDS calculation results within seconds.
• It eliminates all possibility of errors in manual calculation.

How Can I Use the TDS Amount Calculator?

Using our TDS calculator is easy. Follow the steps below to calculate your TDS:

• Step 1: Choose the type of recipient (individual, sole proprietor, HUF, or other).
• Step 2: Enter the payment amount.
• Step 3: Select the nature of payment.

If TDS is deducted, it will show the TDS deductible amount within seconds.

How to Calculate TDS?

You can use the formula below to calculate your TDS. Your TDS calculation depends on the nature of the deduction. Let us understand the formula for TDS calculation:

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

TDS Calculation Example

For better understanding, let us look at an example of how the TDS formula works:

If Ms. Priya has received the salary of Rs. 80,000 in a month (i.e., Rs. 9,60,000 annually — these rates are time-sensitive and will change with financial years).

According to Section 192, the TDS on your salary based on the current year's slab rates would be Rs. 81,000. After the addition of 4% education and higher education cess, her net payable tax becomes Rs. 84,240.
The average rate on TDS would be = Rs. 84,240 / 9,60,000 × 100 = 8.775%

So, the TDS that is deducted from Ms. Priya's salary each month would be 8.775% of 80,000, which is, = Rs. 7,020

Advantages of the online TDS Calculator 

The online TDS calculator offers various advantages, such as:

• You can estimate the amount that you are liable to deduct on a particular transaction.
• It is a free online tool that can be accessed from anywhere.
• You can use the TDS calculator to check the accuracy of already deducted TDS.
• It is easy to use, saving time and effort.

 To understand more about taxation, you can also read about:

Long-term capital gains tax on Equity Mutual Funds

Tax Implications on Demat accounts.