TDS Calculator: Top 10 Smart Tips for Accuracy
Amount Distribution
TDS Rates for Different Payments
| Payment Type | Normal Rate | No PAN Rate | Threshold |
|---|---|---|---|
| Salary | As per Income Tax Slabs | 20% | Basic Exemption |
| Interest (Banks) | 10% | 20% | ₹40,000 (₹50,000 for seniors) |
| Contract Payments | 1-2% | 20% | ₹30,000 per transaction |
| Rent | 10% | 20% | ₹50,000 per month |
| Professional Fees | 10% | 20% | ₹30,000 per transaction |
FAQs for TDS Calculator Page
1. Why does my TDS calculator show a wrong deduction amount?
Most calculators show wrong TDS results when you select the wrong financial year, use outdated rates, or forget to include exemptions. Always verify you’re using the latest slab and correct source of income before calculating.
2. Why is my TDS higher than expected?
TDS may appear higher if extra allowances, bonuses, or interest income are not properly adjusted. Check whether you’ve included eligible deductions like investment or housing interest under the correct tax sections.
3. What should I do if the TDS calculator result seems inaccurate?
Double-check the input fields — income type, payment frequency, and applicable rate. Even a small mismatch in PAN status or payment category can lead to wrong results.
4. Why is my TDS not showing on salary calculation?
If the calculator doesn’t show TDS on salary, it may be because your income is below the taxable limit or deductions fully offset your tax. Verify the exemption limits for the current financial year.
5. Why do different TDS calculators give different results?
Each calculator may use a different formula, rate update, or assumption. Always choose one that follows the latest government notifications and allows custom deductions for more accuracy.
6. How can I fix wrong TDS calculations for freelancers or contractors?
Freelancers often face TDS mismatches when they select the wrong section (like 194J or 194C). Ensure that the correct TDS rate is applied based on your professional service type.
7. What are the most common mistakes people make while using TDS calculators?
Choosing the wrong assessment year
Ignoring exemptions
Entering gross instead of taxable income
Selecting an incorrect payment type
Review these before submitting results for better accuracy.
8. Why does the TDS calculator not include exemptions or deductions?
Some calculators use simplified logic and skip optional fields. Use one that allows you to enter deductions for housing, insurance, or savings schemes to get the most precise results.
9. Why is my TDS on interest income miscalculated?
Banks or companies may deduct TDS at a flat rate, while calculators estimate based on annualized income. Recheck if your entered interest amount matches actual credited income.
10. Why does my TDS calculator show zero tax even though I earned income?
This happens when the total income is below the threshold or when exemptions cancel out the liability. Double-check your input and verify the latest exemption limit applicable for the year.
11. How can I ensure my TDS calculation is accurate?
Use updated tax rates, select the right year and section, and include every income source. Reviewing your inputs before calculation helps avoid common TDS errors.
12. Why do I see a difference between the calculator and Form 26AS?
TDS calculators give estimates, while Form 26AS reflects actual tax deducted and reported by the deductor. The difference arises due to timing or incorrect entries in records.
13. How can I calculate TDS for multiple income sources correctly?
Use a calculator that supports multiple income fields. Combine salary, rent, interest, and commission income for a complete tax deduction estimate.
14. Why is my refund lower than the calculator’s estimate?
Refunds may differ when deductions were overclaimed or actual income varied from projections. Recheck your TDS entries and verify government updates before filing.