Calculate Tax Deducted at Source (TDS) on common payment types like interest, rent, professional fees, and contractor payments.
How to Use the TDS Calculator
Select the "Payment Type" that matches your transaction.
Enter the "Payment Amount (₹)".
Select whether the recipient's PAN is available - if not, a higher 20% rate applies.
Click "Calculate TDS" to see the TDS amount and net payment after deduction.
How TDS Is Calculated
TDS = Payment amount × TDS rate ÷ 100, and the payee receives the payment minus TDS. If the payee has not given a valid PAN, the rate becomes 20% (or the normal rate, if that is higher), which is why the calculator switches to 20% when you choose "No".
TDS is not an extra tax. It is an advance payment of the payee's own income tax, collected by the payer and deposited against the payee's PAN. The payee sees it in Form 26AS and the Annual Information Statement (AIS), and claims it as credit when filing the income tax return. If the final tax is lower than the TDS, the difference comes back as a refund.
Common TDS Rates and Thresholds (Resident Payees)
TDS has to be deducted only when the payment crosses a threshold. These are the rates and limits used for FY 2025-26, after the changes in Budget 2025:
Payment
Rate
No TDS if payment does not exceed
Interest from a bank, co-operative bank or post office (194A)
10%
₹50,000 a year (₹1 lakh for senior citizens)
Interest from other payers (194A)
10%
₹10,000 a year
Rent of land, building or furniture (194-I)
10%
₹50,000 a month
Rent of plant or machinery (194-I)
2%
₹50,000 a month
Professional fees (194J)
10%
₹50,000 a year
Fees for technical services (194J)
2%
₹50,000 a year
Contractor, individual or HUF / others (194C)
1% / 2%
₹30,000 for one payment, or ₹1 lakh in a year
Commission or brokerage (194H)
2%
₹20,000 a year
Dividend (194)
10%
₹10,000 a year
Rates and thresholds change through the Union Budget. From 1 April 2026 the Income-tax Act, 2025 groups the TDS provisions into tables under new section numbers, so the familiar section numbers above are for reference. Confirm the current rate on the Income Tax Department website before deducting.
Worked Examples
Professional fees: A company pays a chartered accountant ₹80,000. TDS at 10% is ₹8,000, and the CA receives ₹72,000. Without a PAN, TDS would be 20%, or ₹16,000, leaving ₹64,000.
Contractor: A firm pays ₹2,50,000 to a painting contractor that is a partnership firm. TDS at 2% is ₹5,000. If the contractor were an individual, the rate would be 1%, or ₹2,500.
Commission: An insurance agency pays ₹60,000 commission to a sub-agent. At the current 2% rate, TDS is ₹1,200. Before October 2024 the rate was 5%, so older spreadsheets may show ₹3,000.
What the Deductor Has to Do
Deduct TDS when the amount is paid or credited to the payee's account, whichever happens first. Booking an expense in March and paying in April still means deducting in March.
Deposit the TDS with the government by the 7th of the following month. For tax deducted in March, the deadline is 30 April.
File the quarterly TDS return (Form 26Q for most non-salary payments) and issue Form 16A to the payee, so the credit appears against their PAN.
Late deduction or late deposit attracts interest, and the expense can be partly disallowed when computing your own business income. Getting the rate right the first time saves a lot of correction work.
Frequently Asked Questions
Under Section 206AA of the Income Tax Act, if the recipient doesn't furnish their PAN, TDS must be deducted at a higher rate - the standard rate for the payment type, or 20%, whichever is higher.
These are commonly used illustrative rates for major TDS sections. Actual rates can vary based on the payee's status (individual, company, non-resident), any threshold exemptions, and changes announced in the Union Budget - always confirm the current rate with the Income Tax Department or a tax professional.
No. TDS on salary (Section 192) is deducted based on the employee's estimated annual tax liability spread across the remaining months of the financial year, not a flat rate - use the Income Tax Calculator or Old vs New Tax Regime Calculator for salary-related tax estimates.
No, as long as the GST is shown separately on the invoice. TDS is then calculated on the value before GST. For a ₹1,00,000 professional fee plus ₹18,000 GST, TDS at 10% is ₹10,000, not ₹11,800. Enter the amount before GST in the calculator.
Individuals whose total income is below the taxable limit can submit Form 15G (or Form 15H if they are 60 or older) to the bank or company paying interest or dividends. Others can apply to the tax department for a certificate of lower or nil deduction. Any TDS that is still more than the final tax is refunded after filing the income tax return.