Calculate Tax Deducted at Source for various payment categories
| Payment Category | TDS Rate |
|---|---|
| Contractor (with PAN) | 1.5% |
| Contractor (without PAN) | 15% |
| Consultancy / Professional | 15% |
| Rent (Building/Land) | 10% |
| Rent (Vehicle/Equipment) | 15% |
| Interest (Individual) | 5% |
| Interest (Entity) | 15% |
| Dividend | 5% |
| Commission / Agency | 15% |
| Prize / Lottery | 25% |
Important: TDS must be deducted at the time of payment or credit, whichever is earlier. Failure to deduct or deposit TDS attracts penalties and interest. Always verify current rates with IRD.
TDS (Tax Deducted at Source) is a mechanism where tax is deducted by the payer at the time of making certain payments. The deducted amount is then deposited to the Inland Revenue Department (IRD) on behalf of the payee. This ensures tax collection at the source of income.
For contractor and sub-contractor payments:
Late deposit attracts 15% interest per annum!
After deducting TDS, you must issue a TDS certificate containing:
MrSolution v2018 includes automatic TDS calculation, certificate generation, and return preparation.