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What is TDS?

TDS or Tax Deducted at Source is a process implemented by the Indian Government, which is collected from salary, rent, commission etc. The person who is paying the amount should deduct TDS from it. TDS should be deducted irrespective of the made of payment cash, cheque credit and both the account should be linked with PAN. The purpose of TDS may have been to reduce the chances of tax evasion by the recipient of the income. But, for an honest taxpayer, it also brings a few benefits.

A TDS Calculator online is a tool that will help you to calculate the TDS amount on income. It will also help you to know whether the TDS will be deducted or not. It will provide you with the basic insight into TDS rules. Using TDS Calculator online is very simple and it can be used anytime and as many times needed.

Benefits of using TDS Calculator?

There are few benefits of using TDS Calculator online, this can be helpful for both business and individuals. The benefits are as follows

1. It allows you to calculate the exact TDS amount, which are supposed to be deducted from the payment
2. This calculator is simple to use, and with this you will be able to get your result quickly
3. It also helps to reduce the possible error in the calculation
4. You will also know if you are complying with tax laws and regulations

How to calculate TDS?

The formula for average income tax rate:

Average Income tax rate = Income tax payable as per the slab rates / Total estimated income for the financial year

For example,

If Mr Ramesh has received the salary of ₹1,00,000 in a year (these rates will change with every financial year).

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

Average Income tax rate = 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

How to use ELM TDS Calculator?

With our TDS calculator online, calculating TDS is easy and free. You only need to follow these steps:

You need to select the Recipient first

Then select if PAN is available or not, After that select the nature of payment from the given list. Then finally enter the amount payable at the end then click “Calculate Now”

Enter the investment period and click on "Calculate now."

The result will appear like this-

Although there are several TDS calculators online, it's important to use the one which is user-friendly for accurate calculations. With Elearnmarkets's online TDS calculator, you can easily and accurately calculate your TDS.