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TDS deductible when payment exceeds ₹30,000
TDS Calculator India 2026 — Calculate Tax Deducted at Source
How to Use the TDS Calculator
Select the income or payment type, enter the gross amount, and indicate whether a PAN is available. The calculator shows TDS amount, net payment after TDS, applicable rate, and the relevant Income Tax section reference.
TDS Rate Chart — FY 2025-26 (AY 2026-27)
TDS rates depend on the type of payment. Each payment type falls under a specific section of the Income Tax Act with its own rate and annual threshold. If the deductee does not provide a valid PAN, a flat 20% applies regardless of the section.
| Section | Payment Type | TDS Rate | Threshold |
|---|---|---|---|
| 192 | Salary | Slab rate | Basic exemption limit |
| 194A | Bank FD / RD interest | 10% | ₹40,000 (₹50,000 for seniors) |
| 194C | Contractor / sub-contractor | 1% (individual) / 2% (company) | ₹30,000 single / ₹1L aggregate |
| 194H | Commission / brokerage | 5% | ₹15,000 |
| 194I | Rent — building / land / furniture (corporate tenant) | 10% | ₹6,00,000/year (₹50,000/month) |
| 194IB | Rent paid by individual tenant above ₹50,000/month | 2% | Monthly rent above ₹50,000 |
| 194J(a) | Technical services — IT, BPO, engineering | 2% | ₹30,000 |
| 194J(b) | Professional fees — CA, lawyer, doctor, designer | 10% | ₹30,000 |
| No PAN | Any payment — no valid PAN provided | 20% (flat) | — |
How TDS is Calculated: Two Quick Examples
Example 1 — Freelancer invoice (Section 194J): Meera raises a ₹1,40,000 graphic design invoice to a company. Section 194J(b) applies (professional service, 10%). TDS = ₹1,40,000 × 10% = ₹14,000. The company pays Meera ₹1,26,000 and deposits ₹14,000 with the government under her PAN. This ₹14,000 appears in Form 26AS and reduces her ITR liability rupee for rupee.
Example 2 — Bank FD interest (Section 194A): Arjun earns ₹38,000 in FD interest at SBI in FY 2025-26. The 194A threshold for banks is ₹40,000. Since ₹38,000 is below the threshold, SBI deducts no TDS. But the ₹38,000 is still taxable income — Arjun must declare it in Schedule OS of his ITR even without TDS being deducted.
In both cases, TDS is advance tax collection — not an extra charge. If TDS exceeds your actual tax liability, the excess comes back as a refund after you file ITR.
Full guide with salary examples, rent scenarios, and what to do when your deductor applies the wrong section rate: How to Calculate TDS in India — Rate Chart, Examples and Refund Guide →
Common Use Cases
- Calculating TDS before making contractor or professional fee payments
- Estimating TDS deduction on monthly rent above the threshold
- Checking if bank interest will attract TDS and by how much
- Determining net payment to vendor after TDS compliance
Frequently Asked Questions
Q: What is TDS and who deducts it?
A: TDS (Tax Deducted at Source) is a mechanism where the payer deducts income tax before making certain payments. The payer (deductor) deposits this tax with the government on behalf of the recipient. The deductee gets credit for the tax deducted, which appears in Form 26AS and can be claimed when filing ITR.
Q: What is the TDS threshold for rent?
A: Under Section 194I (corporate or business tenants), TDS applies on rent exceeding ₹6 lakh per year (₹50,000/month) at 10%. Under Section 194IB (individual tenants paying above ₹50,000/month), TDS is 2%, deducted once a year in March or when vacating. For rent paid to a non-resident landlord, Section 195 applies at higher rates.
Q: What is the difference between Section 194J and 194C?
A: Section 194J covers professional and technical service fees. It has two sub-sections: 194J(a) for technical services — IT, BPO, engineering — at 2%, and 194J(b) for professional services — CA, lawyers, doctors, designers — at 10%. Section 194C covers contractor payments for work contracts — transportation, manufacturing, printing — at 1% for individuals and HUFs, 2% for companies.
Q: What happens if no PAN is provided?
A: If the deductee does not provide a valid PAN, the deductor must deduct TDS at a flat 20%, regardless of the section rate. This higher rate incentivises PAN compliance. The deductee can claim the deducted amount as a TDS credit by filing ITR once they have a valid PAN.
Q: How does a deductee claim a TDS refund?
A: TDS deducted appears in your Form 26AS (Annual Tax Credit Statement). When filing ITR, you claim credit for all TDS already deducted. If total TDS plus advance tax exceeds your actual tax liability, the excess is refunded by the Income Tax Department — typically within 4–8 weeks for a clean return filed before the due date.
Last updated: July 2026 · TDS rates as per FY 2025-26 (AY 2026-27) provisions · For informational purposes only.