TDS Calculator
Calculate the TDS to deduct on contractor, professional, rent, commission, interest and dividend payments at FY 2025-26 rates.
How is TDS calculated?
TDS (tax deducted at source) is the tax the payer withholds from a payment and deposits with the government on the payee's behalf. It is worked out as the applicable section rate × the payment amount. For example, professional fees of ₹1,00,000 under Section 194J attract 10%, so ₹10,000 is deducted and ₹90,000 is paid to the professional.
TDS only has to be deducted once the section's threshold is crossed. Each section has its own limit — for instance ₹30,000 for professional fees or ₹30,000 per single contractor payment — and below that limit no TDS is required. The rate also depends on the type of payment and, for contractor payments under 194C, on whether the deductee is an individual/ HUF (1%) or a company/firm/other (2%).
If the deductee has not provided a PAN, Section 206AA applies and TDS is deducted at the higher of the section rate or 20%. The rates and thresholds shown here are for FY 2025-26 (AY 2026-27); always verify the current rates and thresholds on incometax.gov.in before deducting.
Frequently asked questions
What is TDS?
TDS, or tax deducted at source, is income tax withheld by the payer from a payment such as contractor charges, rent or professional fees, and deposited with the government on behalf of the payee, who then claims credit for it.
Which TDS rate applies to my payment?
The rate depends on the section: 1% or 2% for contractors (194C), 10% for professional fees (194J), 2% for technical services, 10% for rent of building (194I), 2% for plant and machinery rent, 2% for commission (194H), 10% for bank interest (194A) and 10% for dividend (194). Select the nature of payment above to see the right rate.
What happens if the deductee has not given a PAN?
Under Section 206AA, if the deductee does not provide a PAN, TDS must be deducted at the higher of the normal section rate or 20%. Tick the "no PAN" box above to apply this higher rate.
What is the TDS threshold?
Each section has a minimum amount below which no TDS is required — for example ₹30,000 for professional fees, ₹20,000 for commission, ₹50,000 for bank interest and ₹10,000 for dividend. TDS is deducted only once the payment crosses that threshold.
Is TDS deducted on the amount including GST?
No. When GST is shown separately on the invoice, TDS is deducted on the amount excluding GST. Use the value before GST as the payment amount in this calculator.
When must TDS be deposited?
TDS deducted during a month must generally be deposited by the 7th of the following month, except for March, where it is due by 30 April. Late deposit attracts interest of 1.5% per month.
Are these TDS rates current?
The rates and thresholds shown are for FY 2025-26 (AY 2026-27). Rates and limits can change with each Finance Act, so always verify the current figures on incometax.gov.in before deducting.