Tax
TDS is tax withheld at source, and the rate roughly doubles when the recipient has no PAN on record.
The payment
The gross payment before any deduction, in your local currency.
TDS applies only when the payment exceeds this amount.
The rate that applies
Normal deduction rate when the tax ID (PAN) is on file. Placeholder — verify.
A missing tax ID often attracts a higher rate.
Higher rate used when no tax ID is on file. Example only — verify.
TDS Amount
10,000
Tax deducted at source from the payment.
Formula verified 13 September 2026
Net Payment
90,000
What the recipient receives after deduction.
Gross Payment
100,000
The payment before deduction.
Below Threshold? (1 = yes)
0
1 means the payment is at or under the threshold, so no TDS applies.
Educational estimate only — verify rates with your official tax authority. Read the full disclaimer ↓
Estimates only — not financial, tax, or professional advice.
100% private — every number you enter is calculated in your browser and never sent to our servers.
What it calculates: TDS Amount, Net Payment, Gross Payment, Below Threshold? (1 = yes).
Updated 5 June 2026 · Transparent assumptions
Under TDS, the payer withholds a percentage of a payment and deposits it with the government against the recipient’s tax account. The recipient receives the net amount and claims credit for the deducted tax when filing a return.
So TDS is not an additional tax. It is the same liability collected earlier and by someone else, which is why a recipient with a lower effective rate ends up claiming a refund rather than paying more.
Where the recipient has not furnished a PAN, tax must be deducted at a substantially higher rate — commonly 20% or the specified rate, whichever is greater. The purpose is to make the deduction traceable to a taxpayer.
The practical consequence is severe for the recipient: without a PAN there is no account to credit the deduction against, so claiming it back becomes difficult. Collecting PAN before the first payment is worth more than any process downstream.
Each TDS section carries a threshold below which no deduction is required. The trap is that most thresholds apply to the aggregate paid to one recipient across the financial year, not to a single payment.
So four payments each below the threshold can still cross it in total, and the deduction obligation applies from the point it is crossed — sometimes retrospectively on the earlier payments. Tracking the running total per recipient is what prevents that.
Deducting is only the first step. The tax must be deposited by a due date, a quarterly return filed, and a certificate issued to the recipient so they can claim credit. Interest applies to late deposits and a fee to late returns.
Failure to deduct can also mean the expense is disallowed when computing the payer’s own taxable income, which usually costs far more than the deduction itself. Rates and thresholds change with each Finance Act, so confirm the current position for the section that applies.
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Tax disclaimer
Tax rules vary by country, state, tax year, filing status, income type, deductions, and exemptions. This calculator is educational and uses the values you enter. Always verify final tax treatment with official sources or a qualified tax professional.
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Published 13 September 2026