About the TDS Calculator
This TDS calculator tells you whether tax must be deducted at source on a payment to an Indian resident, at what rate, and how much — for the most common payment types in tax year 2026-27. Choose the nature of the payment, enter the amount and what you have already paid the same payee this year, and it checks the threshold, applies the rate for the payee type and shows the TDS to deduct and the net amount to pay.
From 1 April 2026 TDS is governed by section 393 of the Income-tax Act, 2025, which replaces sections 192 to 194T of the 1961 Act with tables. The calculator shows both the new reference and the familiar old section number (194J, 194C, 194-I, 194H, 194A and so on). Rates and thresholds follow the Act and the “rates in force” in Part II of the First Schedule to the Finance Bill 2026, which kept the 2025-26 rates unchanged — for example 10% on professional fees above ₹50,000, 1% or 2% on contractor payments above ₹30,000 a bill or ₹1,00,000 a year, and 10% on bank interest above ₹50,000 (₹1,00,000 for senior citizens).
It is meant for businesses, accountants, landlords’ tenants and anyone paying freelancers or contractors. If the payee does not furnish a valid PAN, TDS is deducted at the higher of the normal rate and 20% (5% for purchase of goods). It covers payments to residents only, ignores lower-deduction certificates and Form 15G/15H declarations, and does not cover salary TDS, which depends on the employee’s full income.
With the default inputs, the tds to deduct is ₹7,500.00. Change any value above to recalculate instantly.
How to use the tds calculator
- 1Choose the nature of the payment you are making.
- 2Enter this payment and what you already paid the same payee this tax year.
- 3Say whether the payee is an individual/HUF or a company or firm, and whether they are a senior citizen.
- 4Confirm whether the payee has given a valid PAN.
- 5Deduct the TDS shown, pay the net amount and deposit the TDS on time.
Formula and method
Under section 393 of the Income-tax Act, 2025, tax is deducted on the entire amount once a payment, or the aggregate paid to the same payee in the tax year, exceeds the threshold for that type of payment. So when a payment first takes the yearly total above the limit, TDS is due on everything paid to that payee so far, not just the excess. Contractor payments have two limits — any single bill above ₹30,000, or yearly bills above ₹1,00,000. Rent is tested against ₹50,000 for a month or part of a month. Purchases of goods attract 0.1% only on the amount above ₹50 lakh a year.
Rates are those written into the Act (for example 10% for professional fees, 2% for technical services and commission, 1%/2% for contractors) or the “rates in force” for interest, insurance commission and winnings from Part II of the First Schedule to the Finance Bill 2026 (10%, 2% or 10% for companies, and 30%). If the payee has not furnished a valid PAN, section 397(2) requires deduction at the higher of the normal rate and 20% (5% for purchase of goods). Health and education cess is not added to TDS on payments to residents.
- Rate
- TDS rate for the nature of payment and payee type
- Base
- Amount on which TDS is deducted after the threshold test
- Threshold
- Per-transaction, monthly or yearly limit from the s. 393 Tables
Worked examples
₹75,000 professional fee to a freelancer (194J)
Professional fees above ₹50,000 in a year attract 10% TDS on the whole amount, so ₹7,500 is deducted and ₹67,500 is paid.
Contractor bill that crosses the yearly limit (194C)
No single bill exceeded ₹30,000, but this ₹25,000 bill takes the year’s total to ₹1,05,000, above the ₹1,00,000 limit. TDS at 2% for a company applies to the full ₹1,05,000: ₹2,100, deducted from this payment.
Monthly office rent of ₹60,000 without PAN (194-I)
Rent for a building above ₹50,000 a month attracts 10% TDS, but because the landlord has not given a PAN the rate rises to 20%, so ₹12,000 is deducted.
Senior citizen’s bank FD interest (194A)
Banks deduct TDS on deposit interest only when the year’s total exceeds ₹1,00,000 for senior citizens, so ₹90,000 of interest has no TDS.
Buying a ₹75 lakh flat (194-IA)
Property worth ₹50 lakh or more attracts 1% TDS on the whole consideration, so the buyer deducts ₹75,000 and deposits it using the PAN-based challan-cum-statement, without needing a TAN.
Frequently asked questions
What is the TDS rate on professional fees (194J)?+
For 2026-27 it is 10% on professional fees, non-film royalty and certain other sums, and 2% on fees for technical services, film royalty and payments to call centres, once payments to the payee exceed ₹50,000 in the year. Director’s fees have no threshold. Under the Income-tax Act, 2025 this is section 393(1), Table Sl. No. 6(iii).
What is the TDS limit for contractors under 194C?+
TDS applies when a single payment exceeds ₹30,000 or total payments to the contractor in the year exceed ₹1,00,000. The rate is 1% for individual or HUF contractors and 2% for others, and the Finance Bill 2026 brought supply of manpower within “work” from 1 April 2026.
What is the TDS threshold on bank interest?+
Banks, co-operative banks and post offices deduct 10% TDS when interest paid to you in the year exceeds ₹50,000, or ₹1,00,000 for senior citizens. For interest from other payers, such as company deposits or loans, the limit is ₹10,000.
What happens if the payee has no PAN?+
TDS must be deducted at the higher of the normal rate, the rate in force, or 20% (5% for TDS on purchase of goods and e-commerce payments). Declarations for no deduction, such as Form 15G or 15H, are invalid without a PAN.
When is TDS on rent required?+
Businesses and individuals under audit deduct 10% on rent for land, buildings or furniture and 2% on plant and machinery when rent exceeds ₹50,000 for a month or part of a month. Other individuals and HUFs paying more than ₹50,000 a month deduct 2%, once a year, from the last month’s rent.
When must TDS be deposited and reported?+
TDS must be paid to the government within the time prescribed by the rules — historically by the 7th of the following month, and by 30 April for deductions made in March. Deductors then file quarterly TDS statements and issue certificates, and payees see the credit in Form 26AS and their Annual Information Statement.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.