TDS Calculator

TDS (Tax Deducted at Source) is a mechanism where the person making a payment deducts tax before paying the recipient. Any person (individual, HUF, company, firm) who is required to make payments covered under TDS provisions must deduct TDS if the payment exceeds the specified threshold. For salary payments (Section 192), every employer must deduct TDS. For other payments, individuals/HUFs must deduct TDS only if they are subject to audit under Section 44AB.

If TDS is not deducted when required, the payer faces several consequences: the expense may be disallowed (30% under Section 40(a)(ia) for non-salary payments), interest is charged at 1% per month from the date TDS was deductible, and a penalty equal to the TDS amount may be levied under Section 271C. The payer also becomes an 'assessee in default' and may face prosecution for repeated defaults.

TDS returns must be filed quarterly: Q1 (April–June) by July 31, Q2 (July–September) by October 31, Q3 (October–December) by January 31, and Q4 (January–March) by May 31. For government deductors, Form 24G is due within 15 days of the month-end. Late filing attracts a fee of ₹200/day under Section 234E (capped at the TDS amount) plus a possible penalty of ₹10,000–₹1,00,000 under Section 271H.

Late TDS return filing attracts two types of penalties: (1) Late filing fee under Section 234E at ₹200 per day until the return is filed, capped at the total TDS amount; (2) Penalty under Section 271H ranging from ₹10,000 to ₹1,00,000 if the return is not filed within one year of the due date. Additionally, interest at 1.5% per month is charged from the date of deduction to actual deposit for late payment of TDS.