TDS Calculator

If TDS is not deducted when required, the payer faces consequences - interest at 1% per month, penalty, and the expense may be disallowed. As a recipient, you're still liable to pay tax on that income. Report such income in your ITR and pay applicable tax. You won't get TDS credit, but won't face penalties for payer's default.

Yes! If TDS deducted exceeds your actual tax liability, you'll get a refund when filing ITR. Example: TDS deducted ₹50,000, but actual tax ₹35,000 - you'll get ₹15,000 refund. File ITR, verify it, and refund will be credited to your bank account within 20-45 days typically.

Submit Form 15G (if below 60) or Form 15H (if senior citizen) to your bank if your total income is below taxable limit. The form is valid for one financial year. Must submit before or at the time of opening FD. If interest exceeds ₹40,000 (₹50,000 for seniors) and form not submitted, 10% TDS will be deducted.

Threshold is the minimum payment amount above which TDS must be deducted. Varies by section: Salary (no threshold), Professional fees (₹30,000/year), Rent (₹2,40,000/year), Interest on bank deposits (₹40,000/year). Below threshold, no TDS. Once crossed, TDS applies to full amount.

TDS (Tax Deducted at Source) is deducted by payer before payment. TCS (Tax Collected at Source) is collected by seller from buyer at time of sale. TDS applies to payments like salary, rent, interest. TCS applies to sale of goods like scrap, minerals, liquor. Both are advance tax mechanisms, just collected differently.

First, verify with deductor that TDS was deposited and correct PAN was used. If deposited but not reflecting, it may take 2-3 weeks to update. If still not showing, file correction request through deductor. As last resort, submit proof of TDS (TDS certificate, payment receipt) while filing ITR and explain the discrepancy.

Yes, providing PAN is mandatory. Without PAN, TDS is deducted at 20% (maximum marginal rate) instead of applicable lower rates. For example, on professional fees: with PAN - 10% TDS, without PAN - 20% TDS. Always provide PAN to avoid higher deduction. You can still claim credit of higher TDS when filing ITR.

Employer deducts TDS on salary as per your estimated annual income and chosen tax regime. Calculated based on: Gross salary, standard deduction (₹50,000), HRA exemption, 80C deductions, other chapter VI-A deductions. Tax calculated as per slabs, divided by 12, deducted monthly. Form 16 issued annually showing all details.

No, if client is a business, TDS at 10% is mandatory under Section 194J on fees exceeding ₹30,000 annually. However, you can: 1) Apply for lower TDS certificate if expected tax is low, 2) Bill in smaller amounts (not recommended for tax evasion), 3) Claim credit of TDS when filing ITR. Remember: TDS is not additional tax, it's advance tax.

Form 16 is not mandatory for filing ITR, but helpful. If not received: 1) Check Form 26AS (has same TDS details), 2) Use salary slips to calculate income, 3) Contact employer for Form 16 (they're legally required to issue), 4) File ITR using Form 26AS and payslips. If TDS shows in 26AS, you can claim credit even without Form 16.

Keep TDS certificates (Form 16/16A) and related documents for at least 7 years from the end of the relevant assessment year. Income Tax Department can scrutinize returns up to 6 years (10 years in serious cases). Having documents helps in responding to notices, claiming refunds, or resolving discrepancies.

Late payment: Interest at 1.5% per month from due date till payment. Late filing: ₹200 per day (max ₹1,00,000 for quarterly returns). Incorrect information: ₹10,000 to ₹1,00,000. Non-compliance: Disallowance of expense, prosecution. File returns on time and pay TDS promptly to avoid heavy penalties.